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INGENIERIA INDUSTRIALADMINISTRACION DE OPERACIONES IITema : Production and Inventory Management EnvironmentMaestro : Ing. Ramon Elizondo Rios
Alumno: Martin Castro Valles09110544
28 / October / 2011
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PRODUCTION ANDINVENTORY MANAGEMENT
ENVIRONMENTS
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PRODUCTIONAND
INVENTORYMANAGEMENTENVIRONMENTS
THE PRODUCTPOSITIONINGSTRATEGY
PRODUCTIONPROCESSDESIGNS
THE CHOICE OFTHE CHNOLOGY
CHARACTERISTICSTHAT DETERMINETHE EFFICACY OF
A MANAGEMENTPOLICY,TECHNIQUE ORPROCEDURE.
TYPE OFPOSITIONINGSTRATEGY
MAKE TO-ORDER
ASSEMBLE TO-ORDER
MAKE OR ENGINEERI-TO-ORDER
FLOW SHOP
CONTINUOUS FLOW
DEDICATED REPETITIVE FLOW
BATCH FLOW
MIXED-MODEL REPETITIVE FLOW
JOB SHOP
FIXED SITE(PROJECT )
EDICADCAPPCAMCIM
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Production and inventory management can be
define as the desing ,operation, and control ofthe manufactures and distribution of products .
PRODUCTION AND INVENTORY MANAGEMENTENVIRONMENTS
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Two factor common to all production
inventory management environments areclose contact with people and the need for aconsistent, well-defined planning and controlsystem
PRODUCTION AND INVENTORY MANAGEMENTENVIRONMENTS
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Production and inventory management providemany different, rewarding , career opportunities, in areas such as supervision , materialsplanning , scheduling , purchasing , inventory
control, and management consulting.
PRODUCTION AND INVENTORY MANAGEMENTENVIRONMENTS
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The career path leads through position suchas material manager , plant manager , vice-president of operations and beyond .
PRODUCTION AND INVENTORY MANAGEMENTENVIRONMENTS
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There are three characteristics that determine theefficacy of a management policy, technique ,or
procedure :
THE PRODUCT POSITIONING STRATEGY
PRODUCTION PROCESS DESIGNS
THE CHOICE OF THE CHNOLOGY
PRODUCTION AND INVENTORY MANAGEMENTENVIRONMENTS
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THE PRODUCT POSITIONING STRATEGY
The product positioning strategy refers to the type of
inventory an organization chooses to maintain . The productpositioning strategy may be any one or a combination of thefollowing:
Make finished product to stock(maintain and sell from finished product inventory)
Assemble finished product to order( maintain an inventory of components,Subassemblies,
and options )
Custom design and make finished product to order( maintain a stock of commonly used material )
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Make finished product to stock
The positioning strategy of make-to-stock emphasizes immediatedelivery of good quality , reasonably priced. Off-the shelf,standard items . In this environment a customer is not willing totolerate a delay in receiving the product. Management is requiredto maintain a stock of finished goods. Often the stock of finishedgoods held is quite large due to the need to provide a variety ofsizes, colors , and features .
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Assemble to-Order
Although some products are packaged or finished toorder rather than assemble , for convenience, we willrefer to this environment as assemble to-order.
In assemble to- order environments , options ,subassemblies, and components are either produced
or purchased to sotck.
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Make-or-Engineer-to-Order
The position strategy of make to-order is to provide the technicalability to produce specialty products, such as machine tools .
In many situations the final design of the item is part of what ispurchased.
The manufacturer often purchases materials after the order isplaced.
The customer must therefore be willing to tolerate a long lead time, perhaps years.
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PRODUCTION PROCESS DESIGNS
There are three traditional designs that are usefulin classifying production process environments.These designs are called :
Flow Shop Manufacturing
Job Shop Manufacturing
Fixed Site Manufacturing
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Flow Shop Manufacturing
The Flow Shop is sometimes calleda product layout because the
product always follows the samesequential steps of production.
There are four types of flow :
Continuous Flow
Dedicated Repetitive Flow
Mixed Model Repetitive Flow
Batch Flow
Manufacturing best practices (Kaizen tools):
KanbanSMED: Single Minute Exchange of Dies5S: Effective work place organization, standardizedwork procedureRoot Cause: Analysis approach and corrective actions(method 8D)3P: Production Preparation Process
VSM: Value Stream Mapping
Mistake proofing (paka yoke)
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Continuous Flow
Continuous flow usually refers to the production or
processing of fluids, wastes, powders , basic metals ,and other bulk items.
An oil refinery that gradually refines oil into petroleumproducts or a pipeline for water ,oil or natural gas are
examples of continuous flow manufacturing anddistribution process.
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Dedicated Repetitive Flow
Discrete parts such as shafts and connecting rods and discreteassemblies such as microcomputers may be produced by a repetitive
flow process.
The term dedicated implies that the production facility produces onlyone product , including product variations ( such as color) that requireno setup delay in the assembly or manufacturing process.
A dedicated line is selected either when the demand for the itemjustifies the exclusive use of a line or when the manufacturingrequirements are sufficient ly different from any other item .
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Mixed Model Repetitive Flow
The following characteristics typify a mixed model repetitive flow line :
The equipment is general purpose in order to facilitate manufacture ofseveral models.
Workers are multifunction capable of performing many different task o oneline or of moving to different lines in the same plant.
Setup times are very short . The ideal setup time is small enough toaccommodate run lengths of one unit, switching models after every item.
The lines produce at the market at the rate of sales . Workers are addedand subtracted and manufacturing task are reassigned as needed to support
the market rate on all models.
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Batch Flow
Batch of similar products are made at a
time.
Provides higher efficiency than jobbing.
Usually implosive material flow.
Stop-and-go processes
Process-specialised machines and workers
Production scheduling
Process lay-out
Process lay-out
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Objectives of Flow Shop Design
1. Combine activities requiring one or more of the following : the same
special skill, the same tooling or equipment , or the same materialsor parts .
2. Meet operation relationship requirements, such as segregatingdust- producing activities from activities a clean environment.
3. Limit the number of physically demanding tasks each work stationin a manual line.
4. Provide flexibility to meet changes in inputs rates . Work stations
can be reorganized by changing assignments of activities withminimum difficulty and cost.
5. Minimize the space requirements.
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Job Shop Manufacturing
A Job shop process is characterized by the organization of similar
equipment by function( such as milling , turning, forging, and assembly).As Job flow from work center to work center , or department todepartment , a different type of operation is performed in each center ordepartment. Orders may follow similar or different paths through theplant ,suggesting one or several dominant flows.
The layout is intended to support a manufacturing environmentin which there can be a great diversity of flow among products.
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Objective of Job Shop Manufacturing
1. Making prototypes of new products .
2. Making small batches for test marketing or early in the productionof product.
3. Making unique or low
volume products such as machines, tools ,and fixtures used to produce other products.
4. Ensuring quality whenever highly skilled labor is required to meetspecifications .
5. Providing the worker with the opportunity to make all of a partcomponent .Specialization of labor is efficient , but in some cases isnot effective due to worker boredom.
I t f d ti fl
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Improvement of production flow
Many units on carts, shelves, conveyors floors waiting to be assembled or furtherprocessed
Visible reject parts that have not been disposed or repaired
Numerous rework benches or large amount of rework operations in the normalproduction
Workers hanging around idle
Expensive machinery or known bottleneck that is idle
Expediting of high priority work orders on factory floor
Trash on the floor, on the tables, on the shelves
Unplanned partial assemblies carried out due to part shortages /unplanned capacity
problems
Machine operators sorting out defect incoming parts
Daily or frequent ad hoc production status meetings on firefighting basis.
Delivery on time, throughput time, yield and other main measures not visible on factoryfloor
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Fixed Site Manufacturing ( Project )
The key identifying characteristics of fixed site ( project )production is that the materials, tools ,and personnel arebrought to the location where the product is to befabricated. The type of process a found in shipbuilding,construction , road building ,and the final assembly oflarge ,special-purpose trucks ,turbines, aircraft , pressurevessels , and any other items that are difficult to move
from work center to work center .
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Fixed Site production is sometimes used in conjunction with otherprocess. After the product reaches a certain size ,it is often morepractical to keep it stationary and move the necessary components
to its location .
Characteristics of fixed site production include the following:
1. Direct labor personnel frequently are highly trained , very skillful,
and independent. They work from blueprints and generalinstructions rather than detailed process sheets.
2. Order quantities are small and orders frequently have customsdesign features .
3. Tooling , personnel, materials, and other resources should beavailable at the proper time to avoid nonproductive capacity.
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THE CHOICE OF THE CHNOLOGY
Manufacturers constantly seek the product or processcharacteristics that will give them a competitive edge.They need information on changing production process
developments, product technology, informationmanagement systems, and product distribution methods.
The computer is playing an increasing role at all levels of
production and distribution process design .
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Summary
Process choice is a strategic choice.
Depending on process, both challenges andsolutions are different
Production lay-out is the implementation of thechosen process
The process types are presented as stereotypical
cases: however, in reality the line betweendifferent types is sometimes fuzzy.