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Operations Management... 100 Slides Plan

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Key Words... Transformation Process – In-Output – Macro Operations – Physical Buffering – Operations Strategy – Process Design – Manufactoring – Supply Chain Management – Vertical Integration – Assembly Operations – Capacity Leading Strategy – Product Technology – CAD – Job Design – Capacity Planning – Inventory Management – Economic Order Quantity – Pareto Curve – ABC Analysis – Material Management – Master Production Schedule – Layouting – Production Plan – Just-in-Time – Quality Management – PDCA Cycle – Process Reengineering – Cause Effect Diagram – Pareto Diagram – Why Why Analysis – TQM – Operations Network – Buffer Inventory


Operations Function: Narrow Definition Engineering/ technical Product/service development

Marketing

Operations management Personnel

Purchasing

Accounting and finance

Extent of the operations function


Operations Function: Broad Definition Engineering/ technical Product/service development

Marketing

Operations management Personnel

Purchasing

Accounting and finance Extent of the operations function


Input-Transformation-Output Processes Input transformed resources Materials information customers

Input Facilities staff Input transforming resources

Environment The transformations process Environment

Output

Goods and services


Output: A Mixture of Goods and Services

Pure Services Psychotherapy clinic

Management consultancy

Computer systems services

Tangible Can be stored Production precedes consumption Low customer contact Can be transported Quality is evident Restaurant

Specialist machine tool manufacturer

Aluminium smelting

Crude oil production

Pure Goods

Intangible Cannot be stored Production and consumption are simultaneous High customer contact Cannot be transported Quality difficult to judge


Macro and Micro Operations

Information from customers Computer systems Survey and analysis staff

Wood, steel, plastic, etc. Carpenters Machines

Set and props manufacture

Scenery and props

Marketing and sales

Market forecasts, sales proposales and plans

Broadcasting and programmemaking equipment Test and repair equipment Staff

Engineering

Adapted, maintained and repaired equipment


Micro Operations and Business Processes Micro operations Marketing and sales

Set and props manufacture

Engineering

Production units

Finance and costing

Preparing quotations

Technical support contracts

Music videos

Customer needs fulfilled

Promotional and advertising contracts

Business processes

Customer needs

Programme production

Size of each micro operation‘s contribution to each process


Physical Buffering

Buffer

The operation system

Buffer

e.g. Physical inventories of raw materials and components

Material processors

e.g. Physical inventories of finished goods

e.g. Databases in national and local government

Information processors

e.g. On-line subscriber services of financial data

e.g. Queues and waiting lists at hospitals

Customer processors

Not applicable


Organizational Buffering Staff

Suppliers

Purchasing

Process technology

Funds

The operation function

Marketing

Staff

Customers


A Typology of Operations Implication Low repetition Each staff member performs more of job Less systemization High unit costs

Flexible Complex Match customer needs High unit costs

Changing capacity Anticipation Flexibility In touch with demand High unit costs Short waiting tolerance Satisfaction governed by customer perception Customer contact skills needed Received variety is high High unit costs

Implication

Low

Low

Low

Low

Volume

Volume

Volume

Volume

High

High repeatability Specialization Systemization Capital intensive Low unit costs

High

Well defined Routine Regular Low unit costs

High

Stable Routine Predictable High utilization Low unit costs

High

Time lag between production and consumption Standardized Low contact skills High staff utilization Centralization Low unit costs


Operations Management and Strategy Environment Input transformed resources

Operations strategy

Materials information customers

Input Facilities staff

Input transforming resources

The operation‘s strategic objectives Operations strategy

The operation‘s competitive role and position

Operations strategy Design

Improvement

Planning and control

Environment

Output

Goods and services


The Three Roles of the Operations Function Operations as effector

Operations as follower

Operations as leader

Being the „implementer“ of strategy

Being „appropriate“ for strategy

Being the „driver“ of strategy

OPS

Strategy

Strategy

OPS OPS OPS

Operations must „make strategy happen“ by translating strategic decisions into operational reality

Strategy

Operations must support strategy by developing appropriate objectives and policies for the resources it manages

OPS

Operations must provide the means to achieve competitive advantage


The Role and the Contribution of the Operations Function Give an operations advantage

Redefine the industry‘s expectations Be clearly the best in the industry

Link strategy with operations Adopt best practise Correct the worst problems

Internally supportive

Be as good as competitors Stop holding the organisazion back Stage 1

Externally supportive

Externally neutral Internally neutral

Stage 2

The ability to implement

Stage 3 The ability to be appropriate

Stage 4 The ability to drive strategy


External and Internal Effects on the Performance Objectives Low price high margin, or both

Short delivery lead time

Cost High total productivity

Speed Fast throughput

Quality On-specification products/ services

Internal effects of the five performance objective Error-free processes

Ability to change

Dependable delivery

Dependability Reliable operation

Flexibility Frequent new product/services Wide product/services range Volume and delivery adjustments


The Influences on the Relative Importance of Performance Objectives The influence of the organization‘s customers What are order-winning, qualifying, and less important factors to them?

The influence of the organization‘s competitors How does the operation react to changes in the way competitors behave?

The relative importance of each performance objective to the operation

The stage of the organization‘s products and services in their life cycle Are products and services at their introduction, growth, maturity or decline stage?


Different Competitive Factors and Performance Objectives Competitive factors If the customer value these...

Performance objectives Then, the operation will need to exel at these...

Low price

Cost

High quality

Quality

Fast delivery

Speed

Reliable delivery

Dependability

Innovative products and services

Flexibility (product/service)

Wide range of products and services

Flexibility (mix)

The ability to change the timing or quantity of products and services

Flexibility (volume and/or delivery)


Order-winning and Qualifying Objectives

Order-winnig factors Competitive benefit

Performance

Qualifying factors Competitive benefit

Performance

Less important factors Competitive benefit

Performance


Competitor Activity and the Influence on Performance Objectives Original strategy

Fast delivery Range

Qualifiers

Price

Fast delivery

Qualifiers

Range Price

Performanc e objectives

Competitor‘s strategy Order winners

Order winner

Performanc Speed and e flexibility objectives Alternative strategy

1

Speed

Alternative strategy 2

Alternative strategy 3

Order winners

Fast delivery Range

Order winners

Faster delivery

Order winners

Qualifiers

Price

Qualifiers

Range Price

Qualifiers

Speed and

Performanc e

Speed

Performanc

Performanc

Price Fast delivery Range


Effects of the Product/Service Life Cycle Introductio n

Growth

Product/ service first introduced to market

Product/ service gains market acceptance

Volume

Slow growth in sales

Rapid growth in sales volume

Customers

Innovators

Early adoptors

Markets needs start to be fulfilled Sales slow down and level off Bulk of market

Competitors

Few/ none

Increasingly number

Stable number

Declining number

Variety of product/service designs

Possible high customization or frequent design changes

Increasingly standardized

Emerging dominant types

Possible move to commodity standardization

Likely order winners

Product/ service characteristics performance or novelty

Availability of quality products/ services

Low price dependable supply

Low price

Likely qualifiers

Quality Range

Prince Range

Dominant operations performance objectives

Flexibility Quality

Speed Dependability Quality

Maturity

Range Quality

Cost Dependability

Decline

Market needs largely met Sales decline

Laggards

Dependable supply

Cost


Design Activities in Operations Management The general principles of design in operations

The design of products and services

The design of processes

Concept generation Network design Screening

Layout and flow

Preliminary design Evaluation and improvement Prototyping and final design

Process technology

Job design


Design Screening Concept Large number of design options

Time

Choice and evaluation screens

Uncertainty regarding the final design Certainty regarding the final design

Final design specification


Process Types in Manufacturing Operations Low

High

Volume

High Project

Variety

Jobbing

Batch

Mass Continous

Low


Process Types in Service Operations Low

High

Volume

High Professional services

Variety

Service shops

Mass services

Low


Line of Fit of Process to Volume/Variety Characteristics Manufacturing operations process types

Project

Less process flexibility than is needed so high cost

Jobbing

None

Professional service

Service shop

Batch

Mass

Continuous

Service operations process types

Volume Variety

None

Less process flexibility than is needed so high cost

Mass service

The natural line of process to volume variety characteristics


The Customer-Marketing-Design Feedback Loop Interpretation of expectation

Expectations Marketing

Product/service design

Operations Product/ service specification

Customer

Product/ service


Stages of Product/Service Design Concept generation

Screening

Preliminary design

Evaluation and improvement

Prototyping and final design

The concept

The package

The process


Concept Generation from Internal and External Sources

Internal sources

Analysis of customer needs

External sources

Marketing department

Market surveys

Suggestion from customer contact staff

Suggestion from customers

Ideas from research & development

Actions of competitors

Concept generation


From an Idea to a Concept Idea From The overall shape of the product or service

Adventure holiday for young people

Adventure holiday for young people

A holiday which is

A telefone which is

Function The way in which the product or service operates Purpose The need the product or service is intended to satisfy

• • • • • • • • •

Benefits The advantage the product or service will bring to customers

Idea

One week long Residential Multi-activity Adventure In a safe but Exciting envirnonment For 14 to 16-year-old Boys and girls Away from their parents

• • • • • •

In lower quartile price range Multi-coloured Fashionably styled Easy to use Dual position Capable of use with two carriers


Concept Screening Many concepts

Marketing screen Operations screen Financial screen

Acceptable concepts


Cash

Effect of a Delay in Time to Market Sales revenue Cash flow Delayed sales revenue Delayed cash flow

Time Development costs Development costs of delayed project

Delay in time to market

Delay in financial breakeven


Organization Structures for Design Activity F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

P.M. P.M. P.M. P.M.

F.M.

F.M.

F.M.

F.M.

F.M.

P.M. P.M. P.M. P.M.

Pure functional organization Increasing project P.M. P.M. P.M. P.M.

orientation

Pure project organization F.M.

F.M.

F.M.

F.M.

P.M. P.M. P.M. P.M.

P.M. P.M. P.M. P.M.

F.M. = Functional Manager P.M. = Project Manager


Total and Immediate Supply Networks

Second-tier suppliers

First-tier suppliers

First-tier customers

Second-tier customers

The Operation

Supply side of the network

The immediate supply network

Demand side of the network

The total supply network


Vertical Integration for an Assembly Operation Downstream vertical integration

Raw materials supplier

Component maker

Assembly operation

Wholesaler

Retailer

Assembly operation

Wholesaler

Retailer

Upstream vertical integration

Raw materials supplier

Stages owned by the organization

Component maker


The Extent of Process Span of Vertical Integration Narrow process span

Raw materials supplier

Component maker

Assembly operation

Wholesaler

Retailer

Wholesaler

Retailer

Wide process span

Raw materials supplier

Stages owned by the organization

Component maker

Assembly operation


The Balance of Internal/External Trade Vertically integrated stages deal only with each other

Raw materials supplier

Component maker

Assembly operation

Wholesaler

Retailer

Wholesaler

Retailer

Vertically integrated stages also sell to/buy from other companies

Raw materials supplier

Stages owned by the organization

Component maker

Assembly operation


Supply- and Demand-Side Factors in Location Decisions Supply-side factors

The operation

Demand-side factors

Which vary in such a way as to influence cost as location varies

Which vary in such a way as to influence customer services/ revenue as location varies

• Labour costs • Land costs • Energy costs • Transportation costs • Community factors

• Labour skills • Suitability of site • Image • Convenience for customer


Capacity-Leading and Capacity-Lagging Strategies Volume (units/week)

Demand

Capacity leads demand

Capacity lags demand

Time


Relationship Between Process and Basic Layout Types

Manufacturing process types

Basic layout types

Service process types

Project processes Fixed-position layout

Professional services

Jobbing processes Process layout Service shop

Batch processes Cell layout

Mass processes Mass service Product layout Continous processes


Volume Variety and Layout Type

High

Volume Low

High

Fixed-position layout

Variety

Process layout Cell layout Product layout

Regular flow more feasible

Flow is intermittet

Low Regular flow more important

Flow becomes continuous


Types of Cell Amount of indirect resources included in the cell High

e.g. Specialist process manufacturing cell

e.g. Plant-within-a-plant manufacturing operation

Internal audit group in a bank

Maternity unit in a hospital

Low

e.g. Small multi-machine manufacturing cell

e.g. Complete componentmanufacturing cell

Joint reference and copying room in a library

Lunch and snack produce area in supermarket

Low

Proportion of the direct resources High needed to complete the transformation included in the cell


Relative Rates of Innovation for Product and Process Technology Process technology

Unco-ordinated

Product technology

Performance maximizing

Systemic Product cost minimizing

High

Rate of innovation

Process technology

Product technology

Low Introduction

Growth Stage of development

Maturity


Volume and Variety Characteristics

Volume

Low High

High Stand-alone NC machine tool

Variety

NC machining centres

Low

Flexible manufacturing systems Flexible transfer lines

Dedicated systems


Increasing Integration of Manufacturing Technologies Designing

Controlling

Handling

Managing

Computer-aided design (CAD)

Computer-aided manufacturing (CAM)

Automated guided vehicles (AGVs) Robotics

Loading Scheduling monitoring

INTEGRATED

CAD/ CAM

INTEGRATED The computer-based systems of other functions, suppliers and customers

FMS

INTEGRATED

CIM INTEGRATED CIE


The Growth in Telecommunication Services

Telegraphie 1850

Telegram Telephony 1880

Colour TV Stereo radio 999 service Private circuit

TV Telex Radio 1930

1970

Cable TV Paging Teletext Multimedia Mobile telephony EDI CCTV Satelite services

1980

Network services Home shopping Cashless services Video games Home banking Video conference Multimedia database Interactive video Telewriting Smart card comms Personal numbering Videotext Mobile videotext Telenewspaper Intelligent network Translation Artificial reality Voice messaging Virtual reality Image transmission Hi-Fi telephony Remote computing Teleworking Voice conference Mobile videophone Video conference ATM Star services Frame relay Alphanumeric paging Speech fax Mobile telephony Archiving Colour fax Centrex Telemetry SDH ISDN X400 LinklineDDSN Telepresence Satelite TV

1990

2000


The Elements of Job Design What tasks? What sequence?

Where to locate

Who else?

What skills

How much autonomy What environmental conditions

How to interface with the facilities?


The Chronology of the Differente Approaches to Job Design before 1900 Division of labour

1900 Scientific management

Operations job design Ergonomics

Behavioural approach

Time

Empowerment

1980 1970

1950


Differente Approaches to Job Design Emphasis on commitment and engagement of staff

Emphasis on managerial control Staff treated as a cost

Division of labour

Scientific management Ergonomics

Behavioural approaches Empowerment

Staff treated as a resource

Self-managed method study


Causes of Seasonality Causes of seasonality

Climatic

Festive

Behavioural

Political

Financial

Some seasonal products and services • Construction materials • Beverages (beer, cola) • Foods (ice-cream, Christmas cakes) • Clothing (swimwear, shoes) • Gardening items (seeds, fertilizer) • Fireworks

• Travel service • Holidays • Tax processing • Doctors (influenza epidemic) • Sport services • Education services

Social


Capacity Planning and Control

Periode t-1

Periode t

Current capacity estimates

Outcome Capacity level

Actual demand and actual capacity

Costs Revenues Working capital Customer satisfaction etc.

Shortages Queues inventory

Periode t+1

Current capacity estimates

Updated forecasts

Decision How much capacity next period?

Outcome Capacity level

Actual demand and actual capacity

Costs Revenues Working capital Customer satisfaction etc.

Shortages Queues inventory

Updated forecasts

Decision How much capacity next period?

Capacity level


Dynamics of Capacity Planning Short-term outlook POOR

NORMAL

GOOD

Outlook < 1

Outlook = 1

Outlook > 1

Lay-off staff

Delay any action

Overtime

Long-term outlook

POOR Hire temporary staff

Outlook < 1

NORMAL

Short-time Idle time

Do nothing

Hire temporary staff

Outlook = 1

GOOD Outlook > 1

Overtime

Make for inventory Hire and make for inventory Short time

Start to recruit

Outlook = Forecast demand / Forecast capacity

Hire staff


The Position of Inventory I

(a) single-stage inventory system

Stock

Sales operations

e.g Local retail store Suppliers


The Position of Inventory II (b) Two-stage inventory system

Central depot

Distribution

Local distribution point

e.g. Automotive parts distributor Suppliers

Sales operations


The Position of Inventory III (c) Multi-stage inventory system

Input stocks

Stage 1

WIP

Stage 2

e.g. Television manufacturer Suppliers

WIP

Stage 3

Finished goods stock


The Position of Inventory IV (d) Multi-echelon inventory system

Garment producers Cloth producers Yarn producers

Regional warehouses Retail stores


Inventory Profile Steady and predictable demand (D)

Inventory level

Order quantity Q

Slope = demand rate

Average inventory = Q / 2

Time

Q/D Instantaneous deliveries at rate of D / Q per period


Economic Order Quantity

Costs

Total costs

Holding costs

Order costs Economic order quantity (EOQ)

Order quantity


Cumulative % of total value

Pareto Curve for Items in a Warehouse

Class A items

Class B items % of total number of items

Class C items


Supply Chain Management Second-tier suppliers

First-tier suppliers

First-tier customers

Second-tier customers

The Operation

Supply side

Demand side

Purchasing and supply management

Physical distribution management Logistics

Materials management Supply chain management


The Purchasing Function Suppliers

Purchasing function

Prepare request for quotations

Suppliers Prepare quotations

Quotations

Produce goods/ services

The internal operation

Order

Request for products and services

Select the preferred supplier

Discuss with the operations

Prepare purchase order

Laise with operations

Delivery goods/ services Inform purchasing function

Receive goods/ services

Input to the operation


The Multi-Echelon Physical System I

Garment manufacturer

Process Inventory

Regional warehouses

Retail stores


Multi-Echelon Physical System II

Factory

Factory

Factory

6 contracts

18 routes

Customer

Customer

Customer

Customer

Customer

Customer

3 contracts


Multi-Echelon Physical System III

Factory

Factory

Warehouse

Customer

Customer

Customer

Factory

12 routes

Warehouse

Customer

3 contracts

Customer

Customer

1 contracts


Responsibilities of Supplier and Purchaser Ex-works

Supplier

Free on board (FOB) Cost and freight (C & F) Cost, insurance & freight (CIF) Delivered

Purchaserâ&#x20AC;&#x2DC;s responsibility Supplierâ&#x20AC;&#x2DC;s responsibility

Purchaser

Free alongside (FAS)


Materials Management

Cash out

Inventory management

Inventory management

Materials processing

Purchasing Raw materials inventory

Materials service flow Information flow

Inventory management

Subassembly Inprocess inventory

Inventory management

Assembly Finished goods inventory

Physical distribution

Cash in

Customers

Suppliers

Materials Management


Material Requirement Planning

Customer orders

Master productions schedule

Forecast demand

Bills of materials

Materials requirements planning

Inventory records

Purchase orders

Materials plans

Works orders


Inputs into the Master Production Schedule Known orders

Key capacity constraints

Forecast demand

Master production schedule

Sister plant demand

Inventory level

R&D demand

Exhibition/ promotion requirements

Spares demand

Safety stock requirements


Different Shapes of Product Structure

A-shape product structure

T-shape product structure

V-shape product structure

Hourglass or X-shape product structure


Closed-Loop MRP Materials plan

Production plan

Master production plan

Materials plan

Capacity plan

Realistic?

Resource requirements plan

Realistic?

Rough-cut capacity plan

Realistic?

Capacity requirements plan


Traditional Flow

(a) Traditional approach â&#x20AC;&#x201C; buffer separate stages

Buffer Inventory Stage A

Buffer Inventory Stage B

Stage C


Just-in-time (JIT) Flow

(b) JIT approach â&#x20AC;&#x201C; deliveries are made on request Orders

Stage A

Orders

Stage B

Deliveries

Stage C

Deliveries


A Typology of Projects

High Multi-nation

Uncertainty

Nation Multiorganization Organization Group

Low Low

Individual

Complexity

High


The Process of Project Planning

Identify activities

Identify relationships and dependencies

Identify schedule constraints

Fix the schedule

Optimize

Estimate times and resources


Effect of Higher Quality on Revenue and Cost Quality up

Service cost down

Image up

Sales volume up

Price competition down

Inspection and test costs down

Complaint and warranty costs down

Scales economies up

Revenue up

Inventory down

Rework and scrap costs down

Productivity up

Operation costs down

Profits up

Capital cost down

Processing time down


The Customer‘s Views of Quality

Gap Customer‘s expectations concerning a product or service

Gap Customer‘s expectations concerning a product or service

Customer‘s perception‘s concerning the product or service

Expectation > perceptions Perceived quality is poor

Customer‘s perception‘s concerning the product or service

Expectation < perceptions Perceived quality is good

Gap Customer‘s expectations concerning a product or service

Customer‘s perception‘s concerning the product or service

Expectation = perceptions Perceived quality is acceptable


Gap Analysis Between Customers‘ Perception and Expectation Previous experiences

Word-of-mouth communications

Image of product or service

Gap 4

Customer‘s expectations concerning a product or service

The customer‘s domain

Is there a gap?

Customer‘s perception‘s concerning the product or service

Gap 1

The actual product or service

Customer‘s own specification of quality

The operation‘s domain

Management‘s concept of the product or service

Organization‘s specification of quality Gap 2

Gap 3


Change in Customersâ&#x20AC;&#x2DC; Needs and the Operationâ&#x20AC;&#x2DC;s Performance over Time Cost

Cost

Dependability Speed

Dependability

Speed

Time

Quality

Flexibility

Performance of the operation Performance of the market

Quality

Flexibility


Good

The Importance-Performance Matrix

Performance against competitors

Better than

Excess

Appropriate Same as

Bad

Improve Worse than

Urgent action

Less important Low

Qualifying Importance for customer

Order winning High


Breakthrough Improvement

Performance

Intended â&#x20AC;&#x17E;breakthroughâ&#x20AC;&#x153; improvements

Actual improvement pattern Time


The PDCA Cycle

Performance

Plan

Act

Do

Check

Path of continous improvement

Time


The Business Process Re-engineering Approach

Activity 1

Activity 2

Activity 3

Activity 4

Micro operations

Customer needs

Customer needs fulfilled

Function 4

Customer needs fulfilled

Function 3

Business processes

Function 2

Customer needs

Function 1

Business processes

Micro operations


Flow Chart for Customer Query Customer phones in with query Telefonist understands query

No

Yes

Answer query over phone

No

Needs an engineer visit

No

Yes Arrange for engineer to visit Yes

No Engineer reports back to manager Important Query/ customer Yes Request central engineer support

Manager understands query Yes

Put trough to relevant engineer

Customer satisfied

Put trough to manager

No

No


Frequency

Cause-Effect Diagram

Wrong prediction Wrong information

Unrecorded modifications

Out of stock Wrong issue

Other reasons Wrong equipment

Causes of unscheduled return


Services performed

Providing medication

Providing night drinks

Providing ashtrays

Locking and unlocking meeting rooms

Providing extra stationery

Providing extra keys

Providing extra linen

Providing glasses for night drinks

Carrying phone messages to meeting rooms

Telefax services

Marketing photocopies

Time (seconds)

Pareto Diagram


Why-Why Analysis Not in budget Lack of training

No time available

Why? High turnover Product spec. documentation complicated

Problem Cause of failure wrongly predicted

Lack of product knowledge

Many new products

Why?

Why?

No analysis of failures No knowledge of system modifications Lack of customer knowledge

No customer records available to engineers

Why?

No analysis of failures


Failure Prevention and Recovery

Failure detection and analysis Finding out what is going wrong and why

Improving system reliability

Recovery

Stopping things going wrong

Coping when things do go wrong


View of Maintenance Costs I

Costs

Total cost

Cost of breakdowns

Cost of providing preventive maintenance

Optimum level of preventive maintenance

Amount of preventive maintenance


View of Maintenance Costs II

Costs

Total cost

Cost of breakdowns

Cost of providing preventive maintenance

Amount of preventive maintenance


Failure Curves for Two Machines

Probability of failure

Machine A

Machine B

x

y Time


The Stages in Failure Planning Discover

Act

Learn

Plan

The fact – What? Possible consequences – Who?

Inform – Tell Contain – Stopp Follow up - Check

Find – The root cause? Prevention – Engineer out

Failure analysis – Possibilities Recovery planning - Procedures


Total Quality Management

• • • • •

Whole operation involved Quality srategy Teamwork Staff empowerment Involves customers and suppliers

• • • •

Quality systems Quality costing Problem solving Quality planning

Inspection

Quality control

• Statistical methods • Process performance • Quality standards • Error detection • Rectification

Quality assurance Total quality management


Costs to rectify error

The Cost of Errors in Different Development Stages

Concept

Design

Prototype

Pilot production

Stage in development and launch process

Market use


The TQM Quality Cost Model

Total cost of quality

Costs of quality

External failure

Internal failure

Appraisal

Prevention Time


Group-based Improvement Quality improvement team

Quality circle

Task force

Improvement task selection

Group

Membership of group

Voluntary

Management direction

Little/ None

Total

Urgent of improvement task

Low

High

Established by management

Assigned by management


Effectiveness of the TQM initiative

The Effectiveness of the TQM Initiative

Time Introduction

Learning and understanding

Growth

Increasing enthusiasm

Leveling off

Disillusionment

Starting to hit the more difficult problems

Waning enthusiasm

Repackaging

Attempts to revitalize the programme


The European Quality Award Model

People management 9%

Leadership 10 %

Policy and strategy 8%

People satisfaction 9%

Processes 14 %

Customer satisfaction 20 %

Resources 9%

Impact on society 6%

Enablers 50 %

Results 50 %

Business results 15 %


Sweeney‘s Generic Strategies

Marketer

Innovator

Emphasizes • Quality • Dependability • Range

Emphasizes • Quality • Product/service • Performance • Speed • New product/service • Development

Caretaker

Innovator

Emphasizes • Price/ cost • Dependability • Quality

Emphasizes • Quality • Product/service • Performance • Flexibility • Speed

Traditional

Enhanced

Strategic change involves enhancing the operation‘s infrastructure

Basic

Customer service criteria

Enhanced

Strategic change involves enhancing The operation‘s structure


International Operations Network Configurations 1. Home country operations

2. Regional operations

3. Global co-ordinated operations

4. Combined regional and global co-ordinated operations


The Performance Objective Trade-Off

Performance objective 2

Performance objective 2 Performance objective 1

Performance objective 1

In the short term one performance objective can be traded off with another

So one aspect of performance can be improved at the expense of others


Common Forecasting Techniques Non-causal techniques

Objective techniques

Time series analysis

Regression

â&#x20AC;˘ â&#x20AC;˘

Economic models

Moving-average smoothing Exponential smoothing

Intuition

Subjective techniques

Causal techniques

Individual expert opinion Group expert opinion (e.g. Delphi forecasting)


Demand

Trend-, Seasonality and Random Variation Analysis

Demand

Time

Demand

Time

Time


The Standard Time Approach

Relaxtion Relaxtion Relaxtion

Working Working Working

Light job

Medium job

Heavy job

One standard minute or hour of work


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100 Operations Management models and diagrams for powerpoint presentations