B370 operations management
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B370 Operations Management. Group 2 Tutorial 4 C.S. Lai July 2012. Agenda. Q & A15 mins. Process Selection – Mfg.30 mins. Service System Design30 mins. Poke-yoke in Services30 mins. Q & A15 mins. Activity.

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B370 Operations Management

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B370 operations management

B370 Operations Management

Group 2

Tutorial 4

C.S. Lai

July 2012

B370 Operations Management


Agenda

Agenda

Q & A15 mins.

Process Selection – Mfg.30 mins.

Service System Design30 mins.

Poke-yoke in Services30 mins.

Q & A15 mins.

B370 Operations Management


Activity

Activity

  • How would you design your production process for the following products? Why?

    • Large Aircraft (e.g. Airbus A340)

    • Luxury Vehicle (e.g. Lamborghini Sports Car)

    • Mass produced Vehicle (e.g. BMW X1)

    • Bread, Glass bottles…etc.

B370 Operations Management


Process flow structures

Process Flow Structures

  • Job shop (e.g. Aircraft)

  • Job shop (e.g. racing car)

  • Batch shop (eg. Pharmaceutical)

  • Assembly Line (eg. Model –T, 100+ years old!)

  • Continuous Flow (eg. Bread, Glass Bottles)

B370 Operations Management


B370 operations management

Few

Major

Products,

Higher

Volume

High

Volume,

High

Standard-

ization

Low

Volume,

One of a

Kind

Multiple

Products,

Low

Volume

Flexibility (High)

Unit Cost (High)

I.

Job

Shop

Commercial

Printer

French Restaurant

II.

Batch

Heavy

Equipment

Coffee Shop

III.

Assembly

Line

Automobile

Assembly

Burger King

IV.

Continuous

Flow

Sugar

Refinery

Flexibility (Low)

Unit Cost (Low)

B370 Operations Management


B370 operations management

Product Design

B370 Operations Management


Typical phases of product development

Typical Phases of Product Development

  • Planning

  • Concept Development

  • System-Level design

  • Design Detail

  • Testing and Refinement

  • Production Ramp-up

B370 Operations Management


Designing for the customer

House of Quality

Quality Function

Deployment

Value Analysis/

Value Engineering

Designing for the Customer

Ideal Customer Product

B370 Operations Management


Designing for the customer quality function deployment

Designing for the Customer: Quality Function Deployment

  • Interfunctional teams from marketing, design engineering, and manufacturing

  • Voice of the customer

  • House of Quality

B370 Operations Management


Designing for the customer the house of quality

Designing for the Customer: The House of Quality

Customer requirements information forms the basis for this matrix, used to translate them into operating or engineering goals.

  • The McGraw-Hill Companies, Inc., 2004


Designing for the customer value analysis value engineering

Designing for the Customer: Value Analysis/Value Engineering

  • Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer

    • Does the item have any design features that are not necessary?

    • Can two or more parts be combined into one?

    • How can we cut down the weight?

    • Are there nonstandard parts that can be eliminated?

B370 Operations Management


Concurrent engineering defined

Concurrent EngineeringDefined

  • Concurrent engineering can be defined as the simultaneous development of project design functions, with open and interactive communication existing among all team members for the purposes of reducing time to market, decreasing cost, and improving quality and reliability.

B370 Operations Management


Design for manufacturability

Design for Manufacturability

  • Traditional Approach

    • “We design it, you build it” or “Over the wall”

  • Concurrent Engineering

    • “Let’s work together simultaneously”

B370 Operations Management


Design for manufacturing and assembly

Design for Manufacturing and Assembly

  • Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts:

  • During the operation of the product, does the part move relative to all other parts already assembled?

  • Must the part be of a different material or be isolated from other parts already assembled?

  • Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance?

B370 Operations Management


Measuring product development performance

Measuring Product Development Performance

Measures

Performance

Dimension

  • Freq. Of new products introduced

  • Time to market introduction

  • Number stated and number completed

  • Actual versus plan

  • Percentage of sales from new products

Time-to-market

  • Engineering hours per project

  • Cost of materials and tooling per project

  • Actual versus plan

Productivity

  • Conformance-reliability in use

  • Design-performance and customer satisfaction

  • Yield-factory and field

Quality

B370 Operations Management


Services

Services

B370 Operations Management


Service generalizations

Service Generalizations

1. Everyone is an expert on services.

2. Services are idiosyncratic.

3. Quality of work is not quality of service.

4. Most services contain a mix of tangible and intangible attributes.

B370 Operations Management


Service generalizations continued

Service Generalizations (Continued)

5. High-contact services are experienced, whereas goods are consumed.

6. Effective management of services requires an understanding of marketing and personnel, as well as operations.

7. Services often take the form of cycles of encounters involving face-to-face, phone, internet, electromechanical, and/or mail interactions.

B370 Operations Management


Service businesses

Service Businesses

  • Facilities-based services

  • Field-based services

B370 Operations Management


The service triangle

The Service

Strategy

The

Customer

The

Systems

The

People

The Service Triangle

B370 Operations Management


Service strategy focus and advantage performance priorities

Service Strategy: Focus and AdvantagePerformance Priorities

  • Treatment of the customer

  • Speed and convenience of service delivery

  • Price

  • Variety

  • Quality of the tangible goods

  • Unique skills that constitute the service offering

B370 Operations Management


Service system design matrix

Service-System Design Matrix

Degree of customer/server contact

Buffered

Permeable

Reactive

High

core (none)

system (some)

system (much)

Low

Face-to-face

total

customization

Face-to-face

loose specs

Sales

Opportunity

Production

Efficiency

Face-to-face

tight specs

Phone

Contact

Internet &

on-site

technology

Mail contact

Low

High

B370 Operations Management


Example of service blueprinting

Example of Service Blueprinting

B370 Operations Management


Service fail safing poka yokes a proactive approach

Task

Treatment

Tangibles

Service Fail-safingPoka-Yokes (A Proactive Approach)

  • Keeping a mistake from becoming a service defect.

  • How can we fail-safe the three Ts?

B370 Operations Management


Three contrasting service designs

Three Contrasting Service Designs

  • The production line approach

  • The self-service approach

  • The personal attention approach

B370 Operations Management


Characteristics of a well designed service system

Characteristics of a Well-Designed Service System

1. Each element of the service system is consistent with the operating focusof the firm.

2. It is user-friendly.

3. It is robust.

4. It is structured so that consistent performanceby its people and systems is easily maintained.

B370 Operations Management


Characteristics of a well designed service system continued

Characteristics of a Well-Designed Service System (Continued)

5. It provides effective links between the back office and the front office so that nothing falls between the cracks.

6. It manages the evidenceof service quality in such a way that customers see the value of the service provided.

7. It is cost-effective.

B370 Operations Management


Applying behavioral science to service encounters

Applying Behavioral Science to Service Encounters

  • The front-end and back-end of the encounter are not created equal

  • Segment the pleasure, combine the pain

  • Let the customer control the process

  • Pay attention to norms and rituals

  • People are easier to blame than systems

  • Let the punishment fit the crime in service recovery

B370 Operations Management


Service guarantees as design drivers

Service Guarantees as Design Drivers

  • Recent research suggests:

    • Any guarantee is better than no guarantee

    • Involve the customer as well as employees in the design

    • Avoid complexity or legalistic language

    • Do not quibble or wriggle when a customer invokes a guarantee

    • Make it clear that you are happy for customers to invoke the guarantee

B370 Operations Management


Enjoy the course and good luck see you next time

To download this presentation:http://alumni.cuhk.edu.hk/~cslai

Enjoy the course…and…Good LuckSee you next time

B370 Operations Management


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