Introduction
to production and operation management operation strategies Design operative system
ภภStrategy of productive systems: Process choice Quality
Designing productive systems Forecasting
Product / Process / Capacity / Supply chain Layout / Workforce
Operating Productive systems APP / MPS / Material Management (MRP Inventory ) / Scheduling / Quality control
Input Energy Materials Labour Capital Information
Value Added
Output Transformation Process -
People Plants Parts Processes Planning and Control
Feedback
Goods or Services
Operations Goods Producing Storage/Transportation
Exchange Entertainment Communication
Examples Farming, mining, construction manufacturing, power generation Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines Retailing, wholesaling, banking, renting, leasing, library, loans Films, radio and television, concerts, recording Newspapers, radio and television newscasts, telephone, satellites
,
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People Information
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Characteristic
Manufacturing
Service
Output
Tangible
Customer contact
Low
High
Uniformity of input
High
Low
Labour content
Low
High
Uniformity of output
High
Low
Measurement of productivity
Easy
Difficult
Opportunity to correct quality problems
High
Low
High
Intangible
Pure goods
Pure services
Crude oil production Motor vehicle Machine tool manufacture Laying or installing a carpet Fast food restaurant Restaurant meal Motor vehicle repair Computer support services Hospital care Management consultancy Counselling
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In order to survive and to prosper (meet the strategic challenge) every organization must: Define and grow Internal Competencies
Develop
and maintain an alignment with the environment Create the future
Meeting the Strategic Challenge
Competitive Advantage Does something better than other organizations Does something that order organization can’t Can compete in the world market
What is Strategy? B
A Where the firm is today
Where the firm wants to be in the future
Strategy is the best means for the firm to get from Point A to Point B
LAB0% *" . Q*F % R&? Where are you now? - . /ก 01234 . /ก 01234
Where you want to go? How to go there?
Business Business Proposition Proposition
Profits = Quantity (Revenue - Cost) MARGIN 3 most fundamental variables in Business
World class manufacturing 1990 s ภ:- ;= < > ภ?@A World class -0B < B 1/ ? C ภA/ < - 0 Total Quality Management Just In Time Design For Manufacturing
World Class Manufacturing B >? 23 J ;
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Key long term success 2M ? N/2ON-OภA @A A/2M ( differentiate ) TQM JIT ภP2M :- O0 :- / /ภ. /ภ01234ภA/ < /ภภ< core competencies > Knowledges ? / future capabilities ;TN best practice A <N T Focus fact Strategic Fit
Outside in (Market requirement) Changing environment World Class able to compete
Strategic Resonance
Inside out (Resource based) Core competencies Distinctive Capabilities
Market requirement
Operations capabilities
low defect dependable and fast delivery high performance products customize products broad product line price competitive product design
process and product quality delivery reliability and speed low - cost production new product innovation
Strategic decision making
Market requirements dissonance
Plant capabilities
dissonance
The Business Operations of the Organization
The needs and wants of the organization]s customers or clients
Input
transformation
- A Output
Feedback Transformation Inputs Capital Technology Transformation Energy of inputs,Adding Know-how Value throughout Experience the entire process from basic inputs Input: to finished goods and services Material Customer information
The final,completed product/service offering for the customer. Tangible and Intangible elements. Combining physical and psychological effects and benefits for the customer are in place in the final transaction. Services and production operations have become linked
Stage1
Stage2
Stage3
Supplier processes
Operations processes
Supplier Operations processes processes
Supplier processes
Sales processes Sales processes
Operations EDI EDI processes
Supply system evolution
Sales processes
Operation processes
Operation processes Supplier processes
Sales processes
Operation processes Supplier processes
Supplier processes
Customer
Sales processes Supplier processes
Operation processes
Sales processes Operation processes Supplier processes
Sales processes
Sales processes
A Cluster of Value
Value chain A systematic way of examining all of the organizationâ&#x20AC;&#x2122;s functional activities and how well they create customer value .
Value Chain Analysis
Support Activities
Administration and Infrastructure Human Resource Management Product / Technology Management
Value addedCost = Margin
Services
Sales and Marketing
Outbound Logistics
Operation
Inbound Logistic
Procurement
Primary Activities Input
Linking with other firms to
Operations and supply
Operations and supply
Operations and supply
End customer Operations and supply
Supply link
Supply link
Core Operations
Operations
Supply link
Supply link
Marketing
Constant dialogue needs to take place between operations and marketing. Cohesion needs to be place in term of; Forecast Delivery promises versus scheduling commitments Design specifications Product assembly Supply involvement and Capabilities
Example of the Firm]s Operations Tactical
Operations activities Strategic Day to day scheduling Capacity scheduling Future capacity; Loading Expansion new site Process quality; Quality management TQM; impacting on SPC charts Monitoring cost Delivery Reliability Change-over times; Process technology Investing to meet Tooling Maintenance customer specifications; inc. speed,flexibility Buying materials Inventory management Strategic purchasing; Buy/make decisions Strategic relationships
Capabilities The organizational routines and processes that determine how efficiently and effectively the organization transforms its input (resources) into outputs ( products , including physical goods and services)
Core competencies The organization â&#x20AC;&#x2DC;s major value-creating skills and capabilities that are shared across multiple product lines or multiple businesses
Manufacturing era Craft Mass production Current / Future Mass customization (Consumer wishes) Flexible specialization (value adding process Lean production ( Zero waste) Agile (Switch from one market driven objective to another) Strategic manufacturing
Robot Parts Controller hardware,
software, power source
Manipulator robot
arm
End-effector “hand”
© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 6 - 38
Hierarchy of Strategy Corporate Strategy Business (Division Level)
Strategy Functional Strategy
Mission and Objective objective Survive Profitable Growth
Operation Objectives Product Quality Cost Delivery Safety Morale Environment Ethics ( P Q C D S M M )
Competitive Factors
The link between production and competitive factors Competitive factors Operations task Offer consistently low defect rates Offer dependable delivery Provide high performance products Offer fast deliveries Customize products and services to customer needs Profit in price competitive markets Introduce new product quickly Offer a broad product line Make rapid volume changes Make rapid product mix changes Make product easily available Make rapid changes in design
Process quality Delivery reliability Product quality Delivery speed Flexibility Low cost production Rapid innovation Flexibility Flexibility Customization ; Flexibility Delivery speed/reliability Flexibility
Competitive comparison
Benchmarking of Do the organization]s capabilities operation capabilities provide competitive advantage? to determine CA Do the weaker areas cause disadvantage?
Cost Delivery speed Delivery reliability Rapid innovation Flexibility Distribution 1 2 3 4 5 Poor same as Vastly competitor superior
1 2 3 4 5 major neutral major disadvantage advantaage
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A process model of operations Strategy 1. Analyzing the environment 2. Internal appraisal 3. Formulate corporate strategy 4. Determine the implications for operations 5. Examine the limitations that financial and technological factors place on operations 6. Decision Operations systems 7. Plan operations 8. Manage and control operations
Operations Strategy External environment Corporate vision Internal environment and goal Industry / business Resources conditions Operations Strategy Core competencies Key success factors Positioning strategies Strategic choice
Design
Operation
Strategic Choice Corporate
Strategies Strategic Choice : Future Direction Competitive Priorities Market Analysis : Market segment Need Assessment Competitive Priorities
: Quality ( Design Consistent Performance)
Cost Delivery (Fast On-time ) Flexibility (Volume Customization) Shifts in Competitive Priorities
: Product / Service Life Cycle Positioning Strategies :Focus Make to stock /Order Assembly to Order
Tangible
Act
Hi-tech
Hi-touch
Design New Technology Capacity Location Layout Job Design
Operating Material Management Aggregate Plans Inventory
Systems Master Production Scheduling Operation Scheduling Statistical Process Control Maintenance
Process Management
Product
Technology and Product Design Process and Management Process Technology and Process Design Process Selection
Product Technology and Product Design Marketing Strategy Me -too Product Market Expansion
Product Development Innovation
Customer Requirement Industrial Design Design for Manufacturing
Product Strategy
Products & Services Design Technology Development Design for Manufacturing (DFM ) Make-to-order made to customer specifications after order received
Make-to-stock made in anticipation of demand
Assemble-to-order add options according to customer specification
Concurrent Engineering (Product Development Stage) <d ภ;<= J<Ke4 Product Concept Functional Specifications Product Specifications Process Specifications
Production
Process and Management Process T Set of logically related
productive tasks tend to cross internal / external organizational boundaries Process Management T ภภภ-M / >B < B 1// ภ2ON?< ;< 34ภ< ;TN ภ? > ภ2ON-O ภ<-? L T ภInput Operation Work Flow > 3Oภ? > ŕ¸
Processes & Technology Flexible Manufacturing System (FMS)
Project
one-time production of product to customer order
Batch production process many jobs at same time in batch
Mass production produce large volumes of standard product for mass
market Continuous processes very high volume commodity product
Product-Process Matrix Continuous production
High Volume
Mass production Batch production Projects
Low Low
Standardization
High
Product-Process Matrix High Labor Intensity
Service Factory Mass Service Service Shop
Professional Low Service
Low
Customization
High
Process Technology and Process Design Process Technology
(CIM) CAD CAM NC Robots AMH FA FM S Process ( Flow ) Design Process Analysis Process Reengineering Macro level focus on overall process Process Improvement Micro level focus on redesign any process
Process: Apple Sauce
1 2 3 4 5 6 7 8 9 10 11
Unload apples from truck 20 Move to inspection station 100 ft Weigh, inspect, sort 30 Move to storage 50 ft 360 Wait until needed Move to peeler 20 ft Apples peeled and cored 15 Soak in water until needed 20 5 Place in conveyor Move to mixing area 20 ft 30 Weigh, inspect, sort Page 1 0f 3
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Description of process
Time (min)
Analyst: TLR Operation Transport Inspect Delay Storage
Location: Graves Mountain
Step
Date: 9-30-95
Distance (feet)
Process Flowchart
Total
480 190 ft Ch 6 - 21
Computer Integrated Manufacturing (CIM) CIM FMS CAD /CAM NC MRP Kamban Data Based Robotics EDI Manufacturing Systems Production support Design Information Technologies
Process Selection Process Type
Conversion
Fabrication
Assembly
Testing
Process Flow Structure
Job shop Batch Assembly Continuous Product - Process Matrix ( Product - Process Focus ) Major
Process Decision
Process choice Resource Flexibility Capital Intensity
Vertical Integration Customer Involvement Economy of scope
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Some Dimensions of Product Quality Performance
– relative to customer’s
intended use Features – special characteristics Reliability – likelihood of breakdowns, malfunctions Serviceability – speed/cost/convenience of servicing Durability – amount of time/use before repairs Appearance – effects on human senses
Determinants of Quality
Quality of design – products/service designed based on customers’ expectations and desires Quality capability of production processes – processes must be capable of producing the products designed for the customers Quality of conformance – capable processes can produce inferior product if not operated properly Quality of customer service – a superior product does not mean success; must have quality service also Organization quality culture – superior product and service requires organization-wide focus on quality
Traditional View of How Much to Inspect
Annual Cost ($)
Optimal Level of Inspection Total Quality Control Costs Cost of Scrap, Rework, and Detecting Defects Cost of Defective Products to Customers
0
% of Products Inspected
Modern Quality Management Quality
Gurus Quality Drives the Productivity Machine Other Aspects of the Quality Picture
The Quality Gurus 1. Deming : Management is responsible 14 Principles 2. Juran : Quality trilogy Planning Control Improvement
3. Crosby : Quality is free Defect
Zero
Quality Gurus
W. Edwards Deming
Assisted Japan in improving productivity and quality after World War II In 1951 Japan established Deming Prize US was slow in recognizing his contributions Introduced Japanese companies to the PlanDo-Check-Act (PDCA) cycle (developed by Shewart) Developed 14 Points for managers
PDCA Cycle 4. ACT 1. PLAN Permanently Identify imimplement provements and improvements develop plan 3. CHECK Evaluate plan to see if it works
2. DO Try plan on a test basis
Elements of TQM Top
management commitment and involvement Customer involvement Design products for quality Design production processes for quality Control production processes for quality Developing supplier partnerships Customer service, distribution, and installation Building teams of empowered
Wrap-Up: World-Class Practice Quality
begins when business strategy is formulated Quality is the weapon of choice to capture global markets Quality drives the productivity machine Not depending on inspection to catch defects; concentrating on doing things right the first time Committing tremendous resources to put in place TQM programs aimed at
Five-Step Chain Reaction Cost decline Improved productivity Increased market share Increased profits More jobs
ภ;0 ภK4J 0 ภ>J 0 Economic Forecasts Revised Demand Initial Demand Forecast Forecast Technological Forecasts
/L 31 ภL /L .O J<Ke4 BoLL<02 /?</ .A / -1 0; L
Resource Forecasts
Components of demand 1 .
A v e r a g e 2 . T r e n d 3. Seasonal influence 4 . C yc l i c al m o v e m e n t 5. Random Error
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Detailed Planning and Scheduling Causal (Daily Production Schedule) Judgement
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Aggregate Planning Staffing Plans Process Modifications
Capacity Planning Facility Planning Process Planning
NM ?<d
Causal Judgement
ŕ¸
Time Series Causal Judgement 0
(Qualitative )Methods Sales force estimates Executive opinion Market research Delphi method
Quantitative Methods Causal
(Linear Regression) Time Series Smoothing Moving Average Exponential Decompositions Additive Mutiplicative
ภ/ ภM </ Total
Demand Market share Company share Capacity Cushion =
Capacity
Design capacity 1Utilization capacity Effective (Utilization) capacity Actual output Rate
Capacity Expansion Strategies Capacity lead strategy Units Capacity
Capacity lag strategy Units Demand
Capacity
Demand Time
Time
Average capacity strategy Units
Incremental vs. one-step expansion Units
Capacity One-step expansion Demand Time Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Incremental expansion Demand Time Ch 11 - 4
Level Production Demand Productio n
Unit s
Time
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 11 - 11
Chase Demand Demand
Units Productio n Time
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 11 - 12
APP Using Pure Strategies Quarter (lb) Spring Summer Fall Hiring cost = $100 Winter per worker
Sales Forecast 80,000 50,000 120,000 150,000
Firing cost = $500 per worker Inventory carrying cost = $0.50 pound per quarter Production per employee = 1,000 pounds per quarter Beginning work force = 100 workers Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 11 - 13
Level Production Strategy Quarter Spring Summer Fall Winter
Sales Forecast 80,000 50,000 150,000 400,000
Production Plan 100,000 100,000 120,000 100,000
Inventory 20,000 70,000 100,000 0 140,000
50,000
Cost = 140,000 pounds x 0.50 per pound = $70,000
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 11 - 14
Chase Demand Strategy Sales Forecast 80,000 50,000
Quarter Spring Summer Fall
Production Workers Plan Needed 80,000 80 50,000 50 120,000 120,000
Workers Hired 120
Workers Fired 20 30 70
30 100
50
Winter
150,000
150,000
150
Cost = (100 workers hired x $100) + (50 workers fired x $500) = $10,000 + 25,000 = $35,000 Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 11 - 15
Examples of Capacity Measures Measure of Capacity Type of organization
Input
Output
Truck manufacturer Machine hours per shift Number of truck per shift Hospital Number of beds Number of patients treated per day Airline Number of planes Seat-miles flown per week Restaurant Number of seats Customer served per day Retailer Size of display areas Number of customers per week Theater Number of seats Number of customers per week
Measuring Capacity Type Output measure for product focus Input measure for process focus Utilization Average output rate / Maximum capacity Design (or peak) capacity Effective capacity
Economies and Diseconomies of Scale 250 O0/
500 O0/
750 O0/
21 k ON0 A @ Bs 0 Economies Diseconomies of scale of scale < (LM @ Bs 0 A ?<B- 4)
Reason for Economies of Scales A. Spreading fixed costs. B. Reducing construction costs. Example of a trash burning plant : Cost ($ Million) Expansion Size (MW) 12.5 25.0 50.0
C. Cutting cost of purchased materials. D. Finding process advantages.
25 36 54
Pressure for Large Cushion Uneven demand Uncertain demand Changing product mix Capacity comes in large
increments Uncertain supply
Pressure for Small Cushion Capital
Costs
ROI and Capacity Cushions Capital Intensity Low High
Capital Cushions Small Medium Large 28 21 25 17 11 7
Conclusion: A small cushion is vital for capital-intensity businesses.
Expansionist Strategy Concept Large, infrequent jumps in capacity Stays ahead of demand Advantage Lost sales unlikely Economies of scale (Construction cost and learning) Preemptive marketing
2 ภ> 4ภ/ ภM </ ภ> 4L1- 1 21 ภ<-? L / : @ A BoLL1 < ?123 Computer
Simulation
Evaluate the alternatives Qualitative Fit with capacity strategy and other aspects of business Uncertainties: demand, competition, Technology, and cost estimates zWhat-if{ analysis Quantitative All cash flows attributable to the project, compared to the base case, including Revenue and costs Changes in assets and liabilities
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U ) &1 L . KFภC. KFภL . KFภ.ภI-&!-&!"/+F"G !). & '(3/+F"G . Q*.P) &)" 1 Preference Matix Load-Distance Model Break-Even Analysis Transportation Model !).
& '(3 C+ * J1
Location Rating Factor Identify
important factors Weight factors (0.00 - 1.00) Subjectively score each factor (0 - 100) Sum weighted scores
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 9 - 27
Location Factor Example Scores (0 to 100) Location Factor Weight Site 1 Site 2 Site 3 Labor pool and climate.30 80 65 90 Proximity to suppliers .20 100 91 75 Wage rates .15 60 95 72 Community environment .15 75 80 80 Proximity to customers.10 65 90 95 Shipping modes .05 85 92 65 Air service .05 50 65 90 Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 9 - 28
Location Factor Example Weighted Scores Site 1 Site 2 Site 3 Location Factor Labor pool and climate 24.00 19.50 27.00 20.00 18.20 15.00 Proximity to suppliers 9.00 14.25 10.80 Wage rates Community environment 11.25 12.00 12.00 6.50 9.00 9.50 Proximity to customers 4.25 4.60 3.25 Shipping modes 2.50 3.25 4.50 Air service Total Score 77.50 80.80 *82.05 Ch 9 - 29 Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
The Transportation Model Ship
items at lowest cost
Sources
have fixed supplies
Destinations
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
have fixed demand
Supp to Ch 9 - 2
Transportation Problem Grain Elevator
Supply
1. Kansas City 2. Omaha 3. Des Moines
150 175 275 600 tons
Mill
Demand
A. Chicago B. St. Louis C. Cincinnati
200 100
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
300 600 tons Supp to Ch 9 - 3
Shipping Cost Table Grain Elevator Kansas City Omaha Des Moines
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Chicago A $6 7 4
Mill St. Louis B $8 11 5
Cincinnati C $10 11 12
Supp to Ch 9 - 4
The Transportation Tableau To From Kansas City
ChicagoSt. LouisCincinnati Supply 6 8 10 150 7
11
11
4
5
12
Omaha Des Moines Demand
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
200
100
300
175 275 600
Supp to Ch 9 - 5
Network Of Routes Des Moines (275) 5 Omaha (175)
4 12
7 11 Cincinnati (300)
11 6 Kansas City (150)
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Chicago (200)
10 8
St. Louis (100)
Supp to Ch 9 - 6
Solving TransportationProblems Manual
methods
Stepping-stone Modified
Computer
distribution (MODI)
solution
Excel POM
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
for Windows
Supp to Ch 9 - 7
Solution For Grain Shipment Elevator Kansas City Omaha Des Moines Demand Shipped Cost
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Chicago Shipped 25 0 175 200 200
Mill St. Louis Cincinnati Supply 0 0 100 100 100
125 175 0 300 300
150 175 275 600
150 175 275
4525
Supp to Ch 9 - 8
Unbalanced Problems Location Capacity(tons) A. Charlotte 90 B. Raleigh 50 C. Lexington 80 D. Danville 60 280 Location Demand (tons) 1. Richmond 120 2. Winston-Salem100 3. Durham 110 330 Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Supp to Ch 9 - 9
Shipping Costs
From A B C D
1 $70 120 70 90
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
To 2 $100 90 30 50
3 $50 40 110 70
Supp to Ch 9 - 10
Transportation Solution Tableau To
WinstonRichmondSalem Durham Supply From 500 100 50 90 90 Charlotte 120 90 40 30 20 50 Raleigh 70 50 110 80 80 Lexington 90 50 70 Danville 40 20 60 Demand Cost Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
120 15900
100
110 Supp to Ch 9 - 11
Supply Chain Facilities,
functions, activities for producing & delivering product or service from supplier to customer
Planning,
managing, acquiring, producing, warehousing, distribution, delivery
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 9 - 2
Supply Chain Design Strategic
issue Apply quality management principles Benchmark to learn what is possible Work with suppliers & customers to achieve goals Control inventory
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 9 - 7
Global Supply Chain Free
trade & global opportunities Nations form trading groups No tariffs or duties Freely transport goods across borders
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 9 - 9
Factors In Heavy Manufacturing Location Construction
costs
Land
costs Raw material & finished goods shipment modes Proximity to raw materials Utilities Labor availability Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 9 - 17
Factors In Light Industry Location Construction
costs
Land
costs Easily accessible geographic region Education & training capabilities
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 9 - 18
Factors In Warehouse Location Transportation Proximity
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
costs
to markets
Ch 9 - 19
Factors In Retail Location Proximity Location
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
to customers
is everything
Ch 9 - 20
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Ranking System For Departments A E I O U X
- absolutely necessary - especially important - important - okay - unimportant - undesirable
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 7 - 17
Relationship Diagramming Example Production Offices Stockroom
O U
A O
I
A X Shipping and Receiving U U O O Locker Room O Toolroom Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
E
A
U
Ch 7 - 18
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Manufacturing Process Layout Lathe Department
Milling Department
Drilling Department
L
L
M
M
D
D
D
D
L
L
M
M
D
D
D
D
L
L
G
G
G
P
L
L
G
G
G
P
L
L
Grinding Department Receiving and Shipping
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Painting Department
A
A
A
Assembly Ch 7 - 6
Block Diagramming Example LOAD SUMMARY CHART DEPARTMENT DEPT. 1 2 3 4 5 1 100 50 2 200 50 3 60 40 50 4 100 5 50 60 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 7 - 13
Initial & Final Designs
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 7 - 14
Block Diagrams
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 7 - 15
Service Process Layout Women’s lingerie Women’s dresses
Shoes
Housewares
Cosmetics Children’s & Jewelry department
Women’s Entry & Men’s sportswear display area department
© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 7 - 7
A Product Layout IN
OUT
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 7 - 8
ก / </ J<Ke4 (Product Layout ) /+FCA
/+ F . A < ก > ก P ? / </ NM : A / <d/ TN /L<ก A 0~
?ON0/ A ก 2 2 ก </ 0T- 01A NM C B Kก NM
ก . B > 0. 42 <;0 ก 2ON OกP NM - 0
Balancing The Line Workstation 1 2 3
Task A B C D
Remaining time 0.3 0.1 0.0 0.1
1
2
3
A, B
C
D
Feasible tasks B none none
0.3 min 0.4 min 0.3 min Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 7 - 28
ภ/ </ @ภ? ( Hybrid Layout ) "AL @
Product -Process Layout
One
Worker Multiple Machine Group Technology Group parts or Products into Families Create GT cell for each Family
Labor Planning Employment
Policy Variable Fixed level Work Schedule Standar Work Schedule Flexible Work Schedule Part Time
/? / / 4ภภ< ภ01234ภ> & &+ -- G Vertical
> & &+ --& .(" 'ภ-FJ# (ภ&&" Mass Horizontal
.(" 'ภ-FJ# (ภ&&"LAB CK ( J%* G ProductionLAB"A ภ{1' LAB"A ภ{1' ภ) ภ&&".ภ)C @M Â&#x20AC;
/% / *.&KBF #+*LJ*
0 )# 123 O * .&I! ภ&FFภ--CM .*)* * G 0 )# 123( ภ(
# " Gภ+
2M : /2M / / Job Design ภภ/ .(#J0 L .|&{zภ)
.(#J0 L "
Technical- Physical factors
Sociopsychological factors
.(#J0 # !-J
/ 4B >ภภภ/ Job
Specialization Job Expansion Enlargement Rotation
Enrichment
Psychology Self-Directed
Team Reward/ Incentives Ergonomics Lean Production
ภ> 4 3Oภ2M / ;TN 3ภO 2M / C@ภ/
B -J<0 :- 1KJ ; }
2 2ON .
Flow Diagram ภ&R( Process Chart Activity Chart *ภ-. &KBF Operation Chart "KF + "KF/!
Process Flowchart Symbols
D
Operation - direct contribution to product/service Transportation - move to another location Inspection - examine for completeness, quality Delay - process has to wait Storage - store product/service for later use
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 8 - 13
Process Flowchart Job: Page:
Copying Job 1
Date:
Analyst: Calvin
Desk operator fills out work order Work order placed in “waiting job” box Job picked up by operator and read Job carried to appropriate copy machine Operator waits for machine to vacate Operator loads paper Operator sets machine Operator performs and completes job Operator inspects job for irregularities Job filed alphabetically in completed shelves Job waits for pick up Job moved by cashier for pick up Cashier completes transaction Cashier packages job (bag, wrap, or box)
© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
9/11
D D D D D D D D D D D D D D Ch 8 - 14
Job Photo-Id Cards Time Operator
-1 -2 -3 -4 -5 -6 -7 -8 -9 -10
Worker-Machine Chart Date 10/14 Time Photo Machine
Idle
Key in customer data on card
2.6
Feed data card in Position customer for photo Take picture
0.4 1.0 0.6
Accept card Idle Begin photo process
Idle
3.4
Photo/card processed
Inspect card & trim edges
1.2
Idle
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 8 - 15
Labor Standard / Work Measurement / Work Standard
Work Measurement Historical Data Direct Time Study Reference Data Work Sampling Work Standard + Time Standard =Normal Time (1+Allowance) Time Study Average
<d ภÂ&#x20AC;Â&#x201A;ภ (Time Study) <d 2ON
1 T ภ/ 2ON /ภÂ&#x20AC;Â&#x201A;ภ <d 2ON 2 A// ภB / 4B >ภ0A 0 <d 2ON 3 ภM -ภ1A < 0A /2ON /ภ< <d 2ON 4 L< / 4B >ภ/
A <d > < 2Â&#x201A;ภA <d 2ON 5 M K Average Actual cycle time <d 2ON 6 M K BภภM -Normal time <d 2ON 7 Normal Time <d 2ON 8 M K } Standard Time
Time Study Observation Sheet
Identification of operationSandwich Assembly Operator Smith
Date
Approval Jones
Observer Russell
Cycles 1 Grasp and layout 1 bread slices
2
3
4
5
6
Summary 7
8
9 10 ÎŁ t
t RF Nt
t .04 .05 .05 .04 .06 .05 .06 .06 .07 .05 .53 .0531.05.056 R .04 .38 .72 1.051.401.762.132.502.893.29
Spread mayonnaise t .07 .06 .07 .08 .07 .07 .08 .10 .09 .08 .77 .077 1.00.077
2 on both slices
R .11 .44 .79 1.131.471.83 2.212.602.983.37
Place ham, cheese, t .12 .11 .14 .12 .13 .13 .13 .12 .14 .14 1.281.28 1.10.141
3 and lettuce on bread
R .23 .55 .93 1.251.601.962.342.723.123.51
t .10 .12 .08 .09 .11 .11 .10 .10 .12 .10 1.031.031.10.113 Place top on sandwich, 4 slice and stack R .33 .67 1.011.341.712.07 2.442.823.243.61 Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 8 - 22
Time Study Example
Compute average element time ∑ t 0.53 t= = = 0.053 n 10
Normal time = (Elemental average) (rating factor) Nt = ( t )(RF) = (0.053)(1.05) = 0.056 Normal Cycle Time = NT = ΣNt = 0.387
© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 8 - 23
ST = (NT) (1 + AF) = (0.387)(1+0.15) = 0.445 min How many sandwiches can be made in 2 hours? 120 min = 269.7 or 270 sandwiches 0.445 min/ sandwich
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 8 - 24
Incentive Piece-Rate Example Piece-rate is $0.04 per sandwich What would average worker earn per hour?
60 min = 134.8 or 135 sandwiches 0.445 min/ sandwich
Wage rate = (135)(0.04) = $5.40
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
Ch 8 - 25
Studied Workerâ&#x20AC;&#x2122;s Wage Average
cycle time = 0.361 without RF ST = (0.361)(1+0.15) = 0.415 60 min = 144.6 or 145 sandwiches 0.415 min/ sandwich
Wage
Š 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e
rate = (145)(0.04) = $5.80
Ch 8 - 26
B ก ก ก General
Training Leadership Communication Project Management Problem Solving Mathematic SPC Critical Thinking Administrative Employment Pratices Performance- Training appraisals Management Skill Learning Curve Technical Increases Skill
Incentive Plan Individual Based
Group / Team Based
Piece
Profit
Rate
Plans Pay-for-Skills Plans Bonus -Point Plans
Sharing Financial Reward Public Recognition