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Lean Manufacturing and Quality Processes. Production/Operations Management. Dr. Eliot Elfner St. Norbert College Spring 2009. TOPICS. Discussion of topics Lean Manufacturing Quality Processes. Lean Production.

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Presentation Transcript
  • Discussion of topics
    • Lean Manufacturing
    • Quality Processes
lean production
Lean Production
  • Lean Production can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods)
  • Lean Production also involves the elimination of waste in production effort
  • Lean Production also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”)
the toyota production system
The Toyota Production System
  • Based on two philosophies:
    • 1. Elimination of waste
    • 2. Respect for people
elimination of waste
Elimination of Waste
  • Focused factory networks
  • Group technology
  • Quality at the source
  • JIT production
  • Uniform plant loading
  • Kanban production control system
  • Minimized setup times

These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility)

Minimizing Waste: Focused Factory Networks

Some plants in Japan have as few as 30 and as many as 1000 employees


System Integration

minimizing waste group technology part 1
Minimizing Waste:Group Technology (Part 1)






Heat Treat







Note how the flow lines are going back and forth

  • Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement
minimizing waste group technology part 2
Minimizing Waste: Group Technology (Part 2)








Heat Treat








  • Revising by using Group Technology Cells can reduce movement and improve product flow
minimizing waste uniform plant loading heijunka
Minimizing Waste: Uniform Plant Loading (heijunka)

Suppose we operate a production plant that produces a single product. The schedule of production for this product could be accomplished using either of the two plant loading schedules below.

Not uniform Jan. Units Feb. Units Mar. Units Total 1,200 3,500 4,300 9,000

Uniform Jan. Units Feb. Units Mar. Units Total 3,000 3,000 3,000 9,000

How does the uniform loading help save labor costs?

minimizing waste inventory hides problems
Minimizing Waste: Inventory Hides Problems

Example: By identifying defective items from a vendor early in the production process the downstream work is saved







Work in




Engineering design





Example: By identifying defective work by employees upstream, the downstream work is saved







minimizing waste kanban production control systems
Minimizing Waste: Kanban Production Control Systems

Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place

This puts the system back were it was before the item was pulled




Part A


Part A

Machine Center

Assembly Line

Production kanban

Material Flow

Card (signal) Flow

The process begins by the Assembly Line people pulling Part A from Storage

determining the number of kanbans needed
Determining the Number of Kanbans Needed
  • Setting up a kanban system requires determining the number of kanbans cards (or containers) needed
  • Each container represents the minimum production lot size
  • An accurate estimate of the lead time required to produce a container is key to determining how many kanbans are required
the number of kanban card sets
The Number of Kanban Card Sets

Expected Demand During Lead Time + Safety Stock

k =

Size of the Container

  • k = Number of kanban card sets (a set is a card)
  • D = Average number of units demanded over some time period
  • L = lead time to replenish an order (same units of time as demand)
  • S = Safety stock expressed as a percentage of demand during leadtime
  • C = Container size


k =


example of kanban card determination problem data
Example of Kanban Card Determination: Problem Data
  • A switch assembly is assembled in batches of 4 units from an “upstream” assembly area and delivered in a special container to a “downstream” control-panel assembly operation
  • The control-panel assembly area requires 5 switch assemblies per hour
  • The switch assembly area can produce a container of switch assemblies in 2 hours
  • Safety stock has been set at 10% of needed inventory
example of kanban card determination calculations
Example of Kanban Card Determination: Calculations

Expected Demand During Lead Time + Safety Stock

k =

Size of the Container



k =





2.75, or 3

Always round up!

respect for people
Respect for People
  • Level payrolls
  • Cooperative employee unions
  • Subcontractor networks
  • Bottom-round management style
  • Quality circles (Small Group Involvement Activities or SGIA’s)
toyota production system s four rules
Toyota Production System’sFour Rules
  • All work shall be highly specified as to content, sequence, timing, and outcome
  • Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses
  • The pathway for every product and service must be simple and direct
  • Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization
lean implementation requirements design flow process
Lean Implementation Requirements: Design Flow Process
  • Link operations
  • Balance workstation capacities
  • Redesign layout for flow
  • Emphasize preventive maintenance
  • Reduce lot sizes
  • Reduce setup/changeover time
lean implementation requirements total quality control
Lean Implementation Requirements: Total Quality Control
  • Worker responsibility
  • Measure SQC
  • Enforce compliance
  • Fail-safe methods
  • Automatic inspection
lean implementation requirements stabilize schedule
Lean Implementation Requirements: Stabilize Schedule
  • Level schedule
  • Underutilize capacity
  • Establish freeze windows
lean implementation requirements kanban pull
Lean Implementation Requirements: Kanban-Pull
  • Demand pull
  • Backflush
  • Reduce lot sizes
lean implementation requirements work with vendors
Lean Implementation Requirements: Work with Vendors
  • Reduce lead times
  • Frequent deliveries
  • Project usage requirements
  • Quality expectations
lean implementation requirements reduce inventory more
Lean Implementation Requirements: Reduce Inventory More
  • Look for other areas
  • Stores
  • Transit
  • Carousels
  • Conveyors
lean implementation requirements improve product design
Lean Implementation Requirements: Improve Product Design
  • Standard product configuration
  • Standardize and reduce number of parts
  • Process design with product design
  • Quality expectations
lean implementation requirements concurrently solve problems
Lean Implementation Requirements: Concurrently Solve Problems
  • Root cause
  • Solve permanently
  • Team approach
  • Line and specialist responsibility
  • Continual education
lean in services examples
Lean in Services (Examples)
  • Organize Problem-Solving Groups
  • Upgrade Housekeeping
  • Upgrade Quality
  • Clarify Process Flows
  • Revise Equipment and Process Technologies
lean in services examples1
Lean in Services (Examples)
  • Level the Facility Load
  • Eliminate Unnecessary Activities
  • Reorganize Physical Configuration
  • Introduce Demand-Pull Scheduling
  • Develop Supplier Networks
quality processes a little history
Quality ProcessesA little history
  • Post WWII Japan – almost a clean slate
    • Limited resources, low volumes  new approach
  • Influences
    • TWI – employees involved in process improvement
    • Deming & Juran
      • Poor quality is responsibility of management
      • Tools for process improvement

Formative years of TQM & JIT

total quality management
Total Quality Management

TQM is an organization-wide effort directed towards the continuous improvement of quality

  • One simple definition of high quality is: “exceeds customers’ expectations”
    • Key point—quality is tied to view of customer (e.g., not specifications)

In brief…

putting tqm principles into practice
Putting TQM principlesinto practice

Customer focus

Employee empowerment

Data-based decision making – “management by fact”

Continuous improvement in quality – how?

definitions of quality
Definitions of Quality
  • Quality as “Excellence”
  • Quality as “Conformance to Specifications”
  • Quality as “Fitness for Use”
  • Quality as “Value for the Price”
total quality management1
Total Quality Management
  • Philosophy of management
  • Part of mission/vision/purpose
  • Implemented through long range strategic planning
quality related product characteristics
Quality Related Product Characteristics
  • Reliability
  • Durability
  • Serviceability
quality related service characteristics
Quality-Related Service Characteristics
  • Reliability
  • Tangibles
  • Responsiveness
  • Assurance
  • Empathy
quality specifications
Quality Specifications
  • Design quality: Inherent value of the product in the marketplace
    • Dimensions include:
      • Performance
      • Features
      • Reliability/Durability
      • Serviceability
      • Aesthetics
      • Perceived Quality.
  • Conformance quality: Degree to which the product or service design specifications are met
costs of quality
Costs of Quality

Appraisal Costs

External Failure


Prevention Costs

Internal FailureCosts

Costs of



ISO 9000

  • Series of standards agreed upon by the International Organization for Standardization (ISO)
  • Adopted in 1987
  • More than 100 countries
  • A prerequisite for global competition?
  • ISO 9000 directs you to "document what you do and then do as you documented"
six sigma quality
Six Sigma Quality

A philosophy and set of methods companies use to eliminate defects in their products and processes

Seeks to reduce variation in the processes that lead to product defects

The name, “six sigma” refers to the variation that exists within plus or minus three standard deviations of the process outputs

six sigma quality con t
Six Sigma Quality (con’t)

Number of defects





Number of opportunities for error per unit




No. of units









  • Six Sigma allows managers to readily describe process performance using a common metric: Defects Per Million Opportunities (DPMO)
six sigma quality con t1
Six Sigma Quality (con’t)

Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation?

So, for every one million letters delivered this city’s postal managers can expect to have 1,000 letters incorrectly sent to the wrong address.

Cost of Quality: What might that DPMO mean in terms of over-time employment to correct the errors?

six sigma quality dmaic cycle
Six Sigma Quality:DMAIC Cycle
  • Define, Measure, Analyze, Improve, and Control (DMAIC)
  • Developed by General Electric as a means of focusing effort on quality using a methodological approach
  • Overall focus of the methodology is to understand and achieve what the customer wants
  • A 6-sigma program seeks to reduce the variation in the processes that lead to these defects
  • DMAIC consists of five steps….
six sigma quality dmaic cycle con t
Six Sigma Quality:DMAIC Cycle (con’t)

1. Define (D)

Customers and their priorities

2. Measure (M)

Process and its performance

3. Analyze (A)

Causes of defects

4. Improve (I)

Remove causes of defects

5. Control (C)

Maintain quality

total quality requirements
Total Quality Requirements
  • Strategic Quality Planning
  • Clear Focus on Customer Satisfaction
  • Continuous Improvement of Key Processes
  • Effective Collection & Analysis of Information
  • Effective Use of Teamwork and Training
  • Effective Design of Products and Services
  • Effective Leadership
components of an opi culture
Components of anOPI Culture

OPI as Central

Focus of

Mission Statement







Bias Toward

Evidence Based





to Continuous


Commitment to


Team Development

characteristics of opi systems
Characteristics ofOPI Systems
  • Vision/mission/purpose for quality
  • Focus on supplier/customer linkages
  • PASSIONATE commitment to continuous improvement
  • Commitment to teaming/training
  • Bias for data based decision making
strategic quality management
Strategic Quality Management

Using the quality of products and services to increase a company’s share of the market

implementing tqm
Implementing TQM

Identify Critical Business Issues

Secure top management commitment

Provide initial training

Identify customer requirements

Identify key processes

Provide specific skills training

Collect and analyze data

Change the process





Continue to improve processes

production operations management1

Lean Manufacturing and Quality Processes

Production/Operations Management

The End

Dr. Eliot Elfner

St. Norbert College

Spring 2009