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` To help the Companies appreciate the role of OM& translate his strategic plans into viableprocesses.
` To identify strategic areas of operational conflict.` To identify impediments for growth and generate
ideas of how to solve them.` To create a general understanding for successful
management of operations to fill in the role of theCompany as (general) manager.
` To help companies draw up his OperationsGrowth Plan
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Marketing
Management
Human
Resources
Management
Strategic
Management
Financial
Management
Ope
rations
Management
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Operations Management (OM) is concerned
with the transformation process to create
output out of resources being put in.
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Input OutputTransform
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Operation
Input resources Transformation
process
Outputs
Department store Goods for sale
Staff sales
Registers, Customers
Display goods
Give sales advice
Sell goods
Customers and goods
assembled together
Dentist Dental surgeons
Dental equipment
Nurses, Patients
Check and treat teeth
Give preventative advice
Patients with healthy teeth
and gums
Printer Printers and designers
Printing presses
Paper and ink
Design
Bind
Designed and printed
material
Police Police officers
Computer systems
Information, Public
Prevent crime
Solve crime
Apprehend criminals
Lawful society
Public with feeling of
security
Fruit juicemanufacturer
Fruit, PansBottles, Staff
Fruit preparationJuice production
Fruit juicesUseful waste
Call centre Customers with questions
Building
Telephone lines
Computers, Staff
Direct questions to the right
person
Answer questions
Store questions
Informed customers
Satisfied customers
Restaurant Hungry customers
Food and beveragesTables, Staff
Take orders
Prepare and serve mealsEating & Washing
Endulged customers
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` People
` Plants (location and means)
` Processes` Parts (materials)
` Planning & Control
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` Strategicx Mission
x Generic strategy
x Industry success factors
x Distinctive competency
` Marketingx Products and Markets (existing and new)
x
Annual sales increasex Rate of customization
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` Too much direct involvement in daily operations.` Wanting to take in every type of customer.` No real or very weak connection between
strategic & marketing identity and operations.` No comprehensive control of operations.` No or poor MIS present.` Reactive instead of proactive throughout the
organisation.
` Struggling to make their organization moreeffective and efficient.
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GR
OWTH
StraegicImplications
OperationsImpediments
for Growth
StrategicCapacityPlan
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` Step 1: List your most important strategic and
marketing objectives
` Step 2: PMCs and their most important operations
performance objectives (OPO)
` Step 3: Evaluate the impact of each OPO
` Step 4: Identify areas of conflict
` Step 5: How to deal with these conflicts?
` What are the main issues coming out of this?
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a) Market
b) Products
c) Present volume
d) % of total volume
e) Growth rate
1. Speed
2. Quality
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`Quality
` Dependability` Speed
` Flexibility
` Cost
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Strategic decisions
Producing large batches with low variety or
cheap materials decrease costsCost
Smaller batches of different products with
lots of variety increase the choice ofcustomers
Flexibility
Performance monitoring systems and strict
processes give reliable outputDependability
Few products in the pipeline, many products
in stock and prioritisation of urgent orders
increase speed
Speed
Low quality fluctuation demands qualitymachines and processes and increased
testing
Quality
Performa
nceobjectives
MarketCom
petitiveness
Resource Usage
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Detailed
Demand
Network
Design
Location
Process &
Lay out
CODP
S
trategic
C
apacity
Plan
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` List per group of products (ideally, based onproduction characteristics)
` Take in any seasonal effects
` Distinguish betweenx Existing products
x New products (procured)
x New products (newly developed)
` Make three scenarios: worst, expected, best
` Be reasonable and increase reliability
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` Mapping the network
` To what extent is each member capable of
following the demand?
` To what extent is each member able to perform inline with your OPOs?
` See questions in par. 3.3.3.
` Where to improve?
` Vertical integration?
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Supply chain management
Materials management
Logistics
Physical distribution managementPurchasing & supply management
The
Operation
Second-tier
suppliers
First-tier
suppliers
First-tier
customers
Second-tier
customers
Supply side Demand side
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` Impact on distance, speed, service, depend.,
etc.
` High-intensity contact systemx Near customer
x Multiple sites if necessary
` Low-intensity contact systemx Minimising costs
x
Near sources of raw material or labourx Logistical optimization
` Using:x Centre of Gravity Method
x Factor weighing system
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` Identify the Process type: how unique is each
products/service and in what kind of process are
they being made?
Manufacturingx Project / Jobbing / Batch / Mass / Continuous flow
Service firms
x Professional service / Service shops / Mass service
Variety and volume is leading
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The facilities layout decision procedure
Volume andvariety
Process type
Basic layout type
Decision 1Decision 1
Decision 2Decision 2
Detailed design
of layout
Decision 3Decision 3
Strategicperformance
objectives
Project processJobbing processBatch processMass processContinuous process
Fixed position layoutProcess layoutCell layoutProduct layout
The physical position of all
transforming resources
Flow of transformed resources
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Variety
Process types in manufacturing
High
Low
VolumeLow High
Project
Jobbing
Batch
Mass
Continuous
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Variety
Process types in manufacturing
High
Low
VolumeLow High
Project Process customized P/S devoted resources ill defined activities complex process
long time period well defined start & end
Construction WorkShipbuildingInstalling Computer SystemMovie Production Companies
Building Mass Rapid Transportation SystemDrilling Oil Wells
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Variety
Process types in manufacturing
High
Low
VolumeLow High
Jobbing ProcessMore products; smalleritemsSharing of resources Low degree of repetition Fewer unpredictablecircumstances
Specialist Toolmakers
Furniture RestorersTickets Printer Social Events
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Variety
Process types in manufacturing
High
Low
VolumeLow High
Batch Process More products in one batch Repetitive with large batches Can be used over wide range Different process routes
Machine Tool MakersComponent Parts ProductionProduction of most ClothingProduction of Gourmet Frozen Food
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Variety
Process types in manufacturing
High
Low
VolumeLow High
Mass Process High volume/low variety Discrete products Repetitive Large predictability
Automobile PlantConsumer Durables MfgFood Processes (pizzas)Beer Bottling
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Variety
Process types in manufacturing
High
Low
VolumeLow High
Continuous Process Long production periods Liquid flow processing
Capital intensive technologies Highly predictable flow
Petrochemical RefineriesEdible Oil ProcessingSteel MakingPaper MakingElectricity UtilitiesBeer Brewing
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Variety
Process types in service operations
High
Low
VolumeLow High
Professional Services
Service Shops
Mass Services
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Variety
Process types in service operations
High
Low
VolumeLow High
Professional Services High customer contact High customization Highly adaptable Value adding in front-office People based High ratio of staff to customers Emphasis on process (how)
Management ConsultantsLawyers PracticesArchitectsA
uditorsH&S InspectorsComputer Field Service Operations
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Variety
Process types in service operations
High
Low
VolumeLow High
Service Shops Services by mix of front/back office People & Equipment based Product/Process emphasis
BankingHigh Street ShopsTour OperatorsCar Rental CosSchoolsTravelAgents
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Variety
Process types in service operations
High
Low
VolumeLow High
Mass Services Limited Customer Contact Time Little customization Equipment based Product oriented (what) Value adding in back-office Division of labor/mainly non-prof.
SupermarketsNational Rail NetworkAirportTelecomLibrary
Television StationPolice Service
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The nature of the basic layout types
Basic layouttypes
Manufacturingprocess types
Serviceprocess types
Fixedposition layout
Project processes
Process layout
Cell layout
Product layout
Jobbing processes
Batch processes
Mass processes
Continuous processes
Professionalservices
Service shops
Mass services
Project processes
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GENERAL LAYOUT TYPES
jDifferent layouts present different
managerial challenges
jDifferent layouts present different
opportunities to satisfy customers unmet
needs
jA strategic perspective is required to make
the right layout choices
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GENERAL LAYOUT TYPES:
FIXED-POSITION LAYOUTS
j Value-adding resources travel to the
customer or need
film a movie on location; build a house
jSpecialized experts can be brought in
jDisadvantages:
lack of efficiency
difficulty in scheduling
potential for cost overruns and quality
problems
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Volume-variety characteristics
Low VOLUME High
Low
VARIETY
Low
Fixedposition layout Vulnerable layout to planningand control disruptions
Motorway ConstructionOpen-heart SurgeryHigh-Class Service RestaurantNuclear Power Station
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GENERAL LAYOUT TYPES:
PROCES LAYOUTS
jResources grouped according to function
materials can be routed through processes in
any order furniture factory; hospital
jHighly customized product-service bundles
jDisadvantages: less efficient
slower response time
complex managerial environment
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Volume-variety characteristics
Low VOLUME High
Low
VARIETY
Low
Process layout Transforming resources
dominate layout Similar processes are located
together
HospitalMachining of Parts for EnginesSupermarket
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GENERAL LAYOUT TYPES:
CELL LAYOUTS
jGeneral-purpose resources dedicated to a
particular group of products or services
each cell is a pseudo product layout
exercise circuit in health club
jProvide a mixture of the advantages/
disadvantages of process and productlayouts, depending on how they are run
more efficient than process layouts
more flexible than product layouts
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Volume-variety characteristics
Low VOLUME High
Low
VARIETY
Low
Cell layoutTransformed resources arepre-selected for group of activitiesProduct or process layoutTo reduce complexity in processlayout
Computer Component MfgLunch products areain SupermarketMaternity area in Hospital
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Volume-variety characteristics
Low VOLUME High
Low
VARIETY
Low
Product (line) layout
Locating transforming resourcesentirely for transformed resources
AutomobileAssembly
Mass-Immunization ProgramSelf-service CafeteriaPacking Lines
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Volume-variety characteristics
Low VOLUME High
High
VARIETY
Low
Fixedposition layout
Process layout
Cell layout
Product layout
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CONSIDERATIONS THAT DRIVE
LAYOUT DECISIONS
jReduce unnecessary activities
jPrevent damage to inventory
jEnhance communication among individuals,
groups, or departments
jPrevent rework
jDiscourage dysfunctional communication
jProvide privacy
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CONSIDERATIONS THAT DRIVE
LAYOUT DECISIONS
jProvide for safety
jProvide for security of resourcesjEnhance labor skills and functional
excellence
jEnhance the quality of work lifejProvide for customer involvement
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Advantages and disadvantages
Fixedpositionlayout
Processlayout
Celllayout
Productlayout
Disadvantages
Advantages
Very high productand mix flexibility.
Product/customernot moved.
High variety oftasks for staff.
Very high unitcosts.
Scheduling spaceand activities canbe difficult.
High product andmix flexibility.
Relatively robustin the case ofdisruptions.
Easy to supervize.
Low utilization.
Can have veryhigh WIP.
Complex flow.
Can give goodcompromise.
Fast throughput.
Group work canresult in goodmotivation.
Can be costly torearrange existing
layout.
Can need moreplant.
Low unit costs forhigh volume.
Opportunities forspecialization ofequipment.
Can have low mixflexibility.
Not very robust todisruption.
Work can be veryrepetitive.
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Detailed design techniques
Fixed position - resource location analysis.
Process layout - flow charts and relationship charts.
Cell layout - product flow analysis.
Product layout - assembly line balancing techniques.
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The Supporting Facility
jCreating the Right Environment
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Objectives
jMinimize material handling costs
jEfficient space, labor utilization
j
Reduce manufacturing lead timejEliminate wasted movements
j Improve quality
jFacilitate communicationsjProvide flexibility
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The need for layout decisions
Inefficient operations
For Example:
High Cost
Bottlenecks
Changes in the designof products or services
The introduction of new
products or services
Accidents
Safety hazards
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The need for layout decisions
Changes inenvironmentalor other legal
requirements
Changes in volume of
output or mix ofproducts
Changes in processand equipment
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Process layout
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Product layout
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Learning Objectivesj Discuss the impact of the servicescape on the
behavior of customers and employees.
j Describe the critical facility design features.
j Identify the bottleneck operation in a product
layout and rebalance for increased capacity.
j Use operations sequence analysis to minimize
flow-distance in a process layout.
j Prepare a process flowchart.
j Recommend facility design features to remove
anxiety of disorientation.
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Servicescapes
Designing Physical Surroundings to Affect
Employee and Customer Behavior
jAmbient Conditions: background
characteristics such as noise level, music,
lighting, temperature, and scent.
jSpatial Layout and Functionality: reception
area, circulation paths of employees andcustomers, and focal points.
jSigns, Symbols, and Artifacts: selection,
orientation, location, and size of objects.
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Typology of Servicescapes
Who Performs in
Servicescape
Physical Complexity of the Servicescape
Elaborate Lean
Self-service
(customer only)
Golf course
Water slide park
Post office kiosk
E-commerce
Interpersonal
(both)
Luxury hotel
Airline terminal
Budget hotel
Bus station
Remote service(employee only) Research labL.L. Bean TelemarketingOnline tech support
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Facility Design ConsiderationsjNature and Objectives of Service
Organization
jLand Availability and Space
Requirements
jFlexibility
jAesthetic Factors
jThe Community and Environment
P d t L t
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Product Layout
Line-balancing Problem
jAutomobile Drivers License Office
Review Payment Violations Eye Test Photograph Issue
In Out1
24015
2120
30
360
60
490
40
5180
20
6120
30
Activity
numbers Flow rateper hour
Timein seconds
A t bil D i Li
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Automobile Drivers License
Office (Improved Layout)
1,465
55
360
60
360
60
1,465
55
6120
30
5180
20
2120
30
In
In
Out
P L t
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Process Layout
Relative Location Problem
jOcean World Theme Park Daily Flows
10
0
6
60
10
7 5
0
6020
43
6
6201
7
010
15
2
8
3
10
15
8820
630
15030
8104012
6
8
530
10
10
A B C D E F A B C D E F
A
B
C
D
E
F
Netflow
Flow matrix Triangularized matrix
Description of attractions: A=killer whale, B=sea lions, C=dolphins, D=water skiing,E=aquarium, F=water rides.
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Process Flow Charting Symbols
Category Symbol Description
Operation An operation performed by the server off-line or customers
self-service. A possible service failure point.
Customer An occasion when server and customer interact. An
contact opportunity to influence customer service perceptions.
Travel The movement of customers, servers, or information
between operations.
Delay D Delay resulting in a queue and a need for waiting space for
customers.Inspection An activity by customer or server to measure service quality.
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Credit Card Processing (Before)
Distance Time Activity
Customer requests check
30 ft. 0.5 min. D Server walks
0.5 min. D Server prepares check
30 ft. 0.5 min. D Server walks
0.25 min. D Server presents check
30 ft. 0.5 min. D Server walks0.5 min. D Customer inspects, puts card out
30 ft. 0.5 min. D Server returns to table
0.25 min D Server picks up card
30 ft. 0.5 min. D Server walks to process
0.5 min D Server fills out slip
0.5 min. D Server processes slip
1.0 min. D Server obtains preauthorization
30 ft. 0.5 min. D Server walks0.25 min. D Server presents slip
30 ft. 0.5 min. D Server walks
0.5 min. D Customer signs (leaves)
30 ft. 0.5 min. D Server walks
0.25 min. D Server picks up slip
30 ft. 0.5 min. D (Customer leaves) Server walks
Total time: Server:9 min. (270 ft.) Customer: 7.75 min.
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Credit Card Processing (After)
Distance Time Activity
Customer requests check
30 ft. 0.5 min. D Server walks
0.5 min. D Server prepares check
0.5 min. D Server fills out slip
30 ft. 0.5 min. D Server walks
0.25 min. D Server presents check and slip
30 ft. 0.5 min. D Server returns to table
0.5 min D Customer inspects, puts card out, signs slip
30 ft. 0.5 min. D Server returns to table
0.25 min D Server picks up card and slip
30 ft. 0.5 min. D Server walks
0.5 min. D Server processes slip an card
1.0 min. D Server obtains authorization30 ft. 0.5 min. D Server walks
0.25 min. D Server presents card and receipt
30 ft. 0.5 min. D Server walks
D Customer leaves
Total time: Server: 7.5 min. (210 ft.) Customer: 6.75 min.
En ironmental Orientation
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Environmental Orientation
Considerations
jNeed for spatial cues to orient visitors
jFormula facilities draw on previous
experiencejEntrance atrium allows visitors to gain a
quick orientation and observe others for
behavioral cues
jOrientation aids and signage such as You
Are Here maps reduce anxiety
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Topics for Discussion
j Compare the attention to aesthetics in waiting
rooms that you have visited. How did the
different environments affect your mood?
j Give an example of a servicescape that supportsthe service concept and another that detracts.
Explain the success or failure in terms of the
servicescape dimensions
j Based on your work experience, contrast a
supportive servicescape with a poor one in terms
of job satisfaction and productivity.
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GENERAL LAYOUT TYPES:
PRODUCT LAYOUTS
jValue-adding resources arranged in order inwhich materials/customers must flow
resources dedicated solely to one product
typically used in mass production
jAllows production and material-handling
tasks to be automated
jLarge quantities at low costjLack of flexibility
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None
NoneProject
Jobbing
Batch
Mass
Continuous
Professional
service
Mass
service
Service
shop
Manufacturingoperationsflow types
Serviceoperationsflow types
volume
variety
Morepro
cessflexibility
than
neede
dsohighcosts
Lessprocess
flexibility
than
neededso
highcosts
The natural line of fit of flow to
volume/variety characteristics
high
lowhigh
low
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Basic Layout Advantages Disadvantages
Fixed-
position
Very high mix & product flexibility
Product or customer not moved or
disturbed
High variety of tasks for staff
Very high unit costs
Scheduling of space & activities can be
hard
Can be much moving of plant and staff
Process High mix and product flexibility
Relatively robust if in the case of
disruptions
Relative easy supervision of equipment
or plant
Low facility utilization
Can have very high work-in-progress or
customer queuing
Complex flow can be difficult to control
Cell Can give a good compromise between
cost and flexibility for relatively high-
variety operations
Fast throughput
Group work may improve motivation
Can be costly to rearrange existing
layout
Can need more plant and equipment
Can give lower plant utilization
Product Low unit costs for high volume
Gives opportunities for specialization of
equipment
Materials or customer movement is
convenient
Can have low mix flexibility
Not very robust in case of disruption
Work can be very repetitive
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` Detailed mapping to understand the process ofcreation
x All essential process steps
x Duration of each step
x
Necessary resources (including labour)` Improving the process
` Deciding on the position of the CODPx Speed / time to delivery
x Control and dependability
x Variety/flexibility
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Decision
Operation
(activity that
adds value)
Transport
(a movement
of something)
Delay
(a wait e.g.
for materials)
Deliberate
storage
(as opposed
to delay)
Inspection
(a check of
some sort)
Direction of
flow
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Job
preperation PackingCutting Assembling
Activities initiated by own
orientation / inventory fill up
Activities initiated by a
specific customer order
Intermediate
Products
Customer OrderDecoupling Point
Up-stream Down-stream
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` Only one CODP in each production flow.
` After the CODP there is no more inventory
` Before the CODP there is only inventory for
economic reasons` More CODP means splitting of production system
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` Translate process map to capacity map ofeach step on average output (not absolutemaximum)
` Compare to the demand scenarios
` Identify possible conflicts in time
` Be aware of bottlenecks, capacity-restrainedresources, and non-bottlenecks
` Draw up a capacity increase plan` Check on the strategic timeframe
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` Translate process map to capacity map ofeach step on average output (not absolutemaximum)
` Compare to the demand scenarios
` Identify possible conflicts in time
` Be aware of bottlenecks, capacity-restrainedresources, and non-bottlenecks
` Draw up a capacity increase plan` Check on the strategic timeframe
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` By formulating operational policies to manage
expectations.
` By eliminating mistakes through formatting the
intake.
` By communicating a reliable delivery date by
using planning buckets.
`
By linking sales orders to production orders tomonitor timely delivery.
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` By adapting procurement policies to the
logistical and financial risks involved.
` By improving the process of ordering goods
and services.
` By improving the process of receiving goods
and services.
`
By better managing the interaction with thesuppliers.
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` By creating a structured warehouse.
` By controlling your inventory.
`
By monitoring the validity of your forecast.` By improving your replenishment warning
system.
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` By optimising the existing production process
through:x Balancing the capacity utilization
x Planning & controlling capacity
x Have standard flexibility
x Have good registration of production data
x Have a QC-system in place
x
Carry out preventive maintenance` By timely increasing production capacity.
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What is Lean production?What is Lean production?
systematic elimination of the 7 types of waste:
Overproduction
Waiting Transportation Inventory Motion over-processing, defective products
The japanese call it Muda (engl.waste)
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Management philosophy Pull system though the plant
WHAT IT IS
Employee participation Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes
WHAT IT REQUIRES
Attacks waste Exposes problems and bottlenecks
Achieves streamlined production
WHAT IT DOES
Stable environment
WHAT IT ASSUMES
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Work in
process
queues
(banks)
Changeorders
Engineering design
redundancies
Vendor
delinquencies
Scrap
Design
backlogs
Machine
downtime
Decision
backlogs
Inspection
backlogs
Paperwork
backlog
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` Not using the capacity efficiently
` Producing wrong goods or services or amounts
` Fluctuating quality and or too much waste
`
Having too much inventory in the system
82
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` Better organise
` Better control
` Make it more reliable
`
Increase output` Make it more flexible
` Anticipate future growth
83
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` 1) Waste from overproduction
` (2) Waste of waiting time
` (3) Transportation waste
` (4) Inventory waste
` (5) Processing waste
` (6) Waste of motion` (7) Waste from product defects
84
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` Planning and controlling capacity
` Standard flexibility
` Production administration
`
Quality control system` Preventive maintenance
` Balancing capacity utilisation
85
8/3/2019 Modern Approaches to Production & Operations Management
86/105
Time frame Aim Content
Strategic
planning
Years Long term Products,
markets, prod
measures
Yearly planning Year , month Coordinationtargets sales and
production
Amounts to selland produce
Capacity and
order planning
Week, day Coordination
prod. phases and
Order plan,
capacity plan
Detailedplanning
Day, hour Starting eachphase in prod
Sequencing workand orders
86
Primaryprocess
Hour, minute produce Orders parts andproducts
8/3/2019 Modern Approaches to Production & Operations Management
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` Malfunction of machines
` Illness of employees
` Late deliveries of supplies
`
Mistakes made in planning` Unexpected fluctuation in demand
` Rush order from the customers
87
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` Planning activities Operating time
Non-productive time
Tool change time-SMED
Amounts of raw material used Amounts of disposal
Quality results
` Check planned, released and ready
` Automation of admin activities.` Link customer order to specific batch
88
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` Be adequate to represent what on the shop floor
` Not too many
` Be linked to the shop floor
`
Be very clear` Be controllable by the shop floor workers
` Be clear what level of fine or bad
` Be visible to the employees
89
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Opo Performanceindicator
Lowest level Highest level
1. Quality 1.Defect rate 2 per 100 1 per 100
2. Dependability On-hour delivery 85 % More than 95 %
3.Speed Cycle time
4. Costs Cost of raw
material
90
5. Flexibility Rush orders
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` By use general order picking principles.
` By have some form of route planning.
` By timely adding distribution capacity.
91
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` Preparing deliveries in a structured way
` Wishes of the customers in delivery process
` Delivering right goods at the right quantities
without damages
` Delivering efficiency customers, routes and
capcities
` Tracking and tracing delivery of goods and
services` Quality of the distribution process
` Increase distribution capacity
92
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` By assessing and eliminating hazards.
` By improving housekeeping.
` By improving work organization.
` By improving personal protection.
` By developing contingency plans.
93
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` Improving housekeeping
` Improving work organisation
` Improve personal protection
`
Contingency planning` Assessing and eliminating hazards
94
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` Designing your mgmt info system (MIS)
` Get automated to a certain extent
` Know the pitfalls
95
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` Reduction of labour
` Real time information
` Reduced reaction time
`
Integrate information flow between departments-finance, marketing purchasing production
` Formatting to reduce mistakes
96
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Level Operations Financial HRM Strategic
CEO -6 months
forecast
Total sales Average
hours
New product
development
Head of sales -3 months
forecast
Sales budget Hours worked
per week
New
machines
Head of
production
Forecast one
month
Production
budget
Hours worked
per employee
New
machines
Head of
finance
Cost of raw
material
Cash flow Workers
throughput
Purchasing
new machines
97
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Type 1 Type 2 Type 3 type4
Description Simple
Basic
No
customization
Complex
Part
customization
Very complex
and wide
varieties
Highestcustomization
Develop
totally new
software
Hardware Stand alone
computers
No network
Network
software
Need
separate
server5-10 users
Network
software
Needs heavy
server
Infinite users
Can network
or stand alone
Very
expensive to
stand alone
98
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Suitable for Small scaleusersSimpleprocessSmallcompanies
Large scaleIntegratedprocessSmall tomediumsized
companies
Almost alltypes ofcompaniesNeedintegration
Very uniqueprocess thatdo not matchtype 3
Reliability Reliable Fairly reliable In the initial
phase will
cause
difficultiesResolve after
some time
Uncertain
Will probably
take long but
bug free
99
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Price 500 to 5000 10,000 to200,000 US$
Over 150,000 Very veryexpensiveerp
ERP not possible Somepossibility
Yes Possible
Example Davilex ExactNavison
Axapta
SAP 4th generationcomputer
10
0
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1) Strategic objectives
2) Marketing objectives
3) Product-Market combinations and their most
important Op. Perform. Objectives4) Impact of each OPO on the network, location,
production system
5) Areas of conflict between OPO and possible
solutions6) Detailed capacity plan
10
1
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7) Evaluation of the network
8) Process & layout within the system
9) The production process mapped in detail
10) Detailed capacity plan for next 3-5 years
11) Identified impediments for growth
12) Improvements on:1) Order intake 5) Distribution
2) Procurement 6) Safety & Health
3) Storage & Inventory 7) Info & Automation4) Production
10
2
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` I am now able to have an aerial view of operationalissues.
` Now I know where to start from to manage mybusiness operations.
` I had no clear understanding of how OM links withall other organisational functions, but its now a talk ofthe past.
` I now know the real areas an Op.mngr should workon.
` I am now equipped to use inventory as a tool tomake working capital sweat even more.
10
3
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GRO
WTH
StraegicImplications
OperationsImpedimentsfor Growth
Strategic
CapacityPlan
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Any Questions?