Operation Management: Concepts and Techniques

1. Republic of Iraq The Ministry of Higher Education & Scientific Research University: Northern Technical College: Management Techniques -Mosul Department: Business ManagementTechniques & electronic Management Techniques Stage: SecondYear Lecturer name : Wijdan Hasan Hammody Academic Status:Lect. • Operation Management Concept :- • It is the organized programmed activity which be achieved inside the enterprise to guarantee the continuous production , its aim is to change the inputs to outputs as goods , services and ideas. • Or / It is the process of change the inputs to outputs as goods , services and ideas. • Or / It is the process of change the raw material to complete products. • The base functions for operation management: • A- The contribution in arranging the studies of utility (feasibility). B- The supervising on constructing the factory. • C- The supervising on operating the factory. • D- Putting complete system for planning and supervising (control) the production. product Service Operation management idea • management and storesmanagement • Operational management , its the connecting chain between the raw materials ware house and the complete production goods taking and receiving the raw materials and the production necessities from the ware houses and handling complete product ional goods to the ware houses.

2. Production System contents: Activities Productionoperation Inputs Outputs Rawnaterials machines hummersresource capital Statistical data Production Departments Product Service idea Internalenvironment Feed back Externalenvironment Strong ness Weatness Opportunities Threat Economic – social – cultural Technical –official * Productivity It's the quantity of production out puts related to each item ofthe production items, it's the harmonization between the effectiveness and efficiency. Outputs Productivity = Inputs * Methods of Increasing theproductivity A- Increasing the outputs with keeping the inputsPermanent B- Increasing the outputs in higher average from Incarnating the inputs. C- Increasing the outputs with decreasing theinput. D- Decreasing the inputs with keeping the outputspermanent. E- Decreasing the inputs in higher average from decreasing theoutputs. Productivity

3. Micro Productivity Rawmaterial capacity workcost Macroproductivity • EX: Determine the macro productivity from informationbellow: • The production of this year (600000)unit. • Work cost (500000)D. • Raw material cost (100000)D. • Utilized capacity cost (300000)D. • Then are no returned fromcustomer. Outputs 600000 Macroproductivity= = * 100 =67% Input 500000+100000 +300000 Effectiveness It's the grade of achieving the aims effectiveness= The actual out puts The planned outouts Efficiency It is the best usage of the available materials. Actual out puts Efficiency = Actual Inputs Production Efficiency It express about the application between the real production with It's product ionalstandard. • EX: Determine effectiveness and efficiency from informationbellow: • Inputs value (1750000) D. • The returned product from the customer (9750)unit. • The Planned production for this year (70000)unit.

4. - The production of this year (65000) unit. Good production = 65000-9750 = 55250unit. Inputs value 1750000 Cast of each product = = = 27D. Totalout puts 65000 (Actual) good production value = 27 * 55250 = 1471750 D. Efficiency = 1491750 * 100 =%82.24 1750000 Effectiveness = 561250 * 100 =%92.85 10000 EX: Determine the efficiency and production average fromgenerator repair department by information bellow: • Efficiency = Actualoutputs * %100 = 36 * %100 =%90 • operatingcap. 40 • Production average = Actualoutputs * %100 = 36 * %100 =%72 • operatingcap. 50 • Production planning ( Demand forgetting) • Bounding the size of the materials, financial and human needs depends totally on assessing the size of the demand on the services and products which the organization produce it, so the organization using the scientifically methods to assessing the size of the ordering on it's product and services in order to achieving it'saims. • There are many section in side the organization benefiting from assessing the size of the ordering on the predateslike? • Production /the Bounding the size of sales and putting a time table, for theproduction.

5. Marketing / for bounding the size of marketing people the casts of marketing and the deliveringput. • Purchases/ for bounding the size of raw materials and production necessitiesneeds. • Financial / for bounding the casts , the incomes and the payment resources. • The storages/ for bounding the products flowing time from. To the storages with a schedules. • To put the production plan we must do twostudies: • Market study, by determined the expected demandvolume. • Product study by: • determine the required storing levels. • Productionscheduling. • determined the needs of humanrecourses. • determined the technical needs of Machinesand • The resource of data and information for determined the expected demand sizeare: • Final consumer Customer Agents Marketing dep. Exultedmangers Historicaldata • Statistic methods in Demandforecasting • 1 / Time series method:

6. Ex: The following data refers to the real demand volume (sales) for one type ofproduct. Determine the expected demand volume of 2007. by using time series method. :لحلا Y2007 = A + B * 6 EX:

7. 2/ Least squaresmethod The Information below are about the number of tyres andthe number of tubs in (1991-1998). Determine the sales of tubes in (1999- 2000-2001). If you know that the sales of tyres for these years are. 1999 24 2000 28 2001 37 The R table is(0-666) To findR

8. 6D2 6*212 R 1110.977 NN218821504 Rcalculated > Rtable We can depend on theinformation X X 10413 N 8 Y y 516.375 N 8 B Xy NXY  0.73 X2NX2 AYBX = 6.375 – 0.73 * 13 =3.1 Y1999 = 3.1 + 0.73 * 24 =20.62 Y2000 = 3.1 + 0.73 * 28 =28.94 Y2001 = 3.1 + 0.73 * 37 =30.11

9. Q : The demand for electric power at N.Y Edison over the period 2004 to 2010 is shown in the following table .The firm wants to forecast 2011 demand by fitting a straight –line trend to thesedata: Product Development :- The product is a group of specifications and properties touching anduntonchiny,Soanychangepropertiesandspecificationsinallor

10. partial or directed it to anew markets or reducing It's costs make it anew product. We can deride the new products to the followinggroups: Createdproducts. Fake product. Old products making anew qualifying onit. Directed the old products to anewmarkets. Croat one the products specifications not all ofthem. Products with the same functions but leastcost. Product developmentconcept Developing the current products and found a new one with anew properties and options, the aimer is ache ring the marching withnew customers needs and desire throw making qualifying and improvements on the current product which is not expected fromthem. The gaps in customer satisfaction will be closedby: Newproduct. Improved currentlyproducts. Improved productionprocess. Improved present service. Keepcurrent product ProductDevelopment Product developmentstages 1) ideasgenerating:

11. Finding anew opportunities and a newideas. internal resources Externalresources The resources of newideas ideasreviewing Reducing the bidden ideas and canceling unusefulideas. evaluating theideas: Introduce the products to a sample of customers throw a charting showing it's qualities be for making theinvestment. the developmentstage: Converting the ideas to are laity and introduce the products to a sample of people. Market tests: Introduce the product to market to understand the customers opinion andreactions. The final marketing: Analyzing the market testing and doing a changing on theproduct. Product lifecycle It's the products movement from It's place in the market untilIt's moving out from the market, every stage had marketing mix and it's an industry to another, technical to another and from market toanother. Salesa nd profit and cost 11 Zeroline

12. Present growth maturity decline • The product life cycle contained four stage: • Presentstage: • Theproductstartwithit'senteringtothemarket,thesalesgrowing • slowly because of the customer unknowing of the product prosperities, so the cost to production and marketing being very height that's make the prices rising up, very little profits, in this stage the product may success or fail, so it's must be an agreement between the price strategy and the promotion in thisstage. • The growthstage: • Inthisstagethesalesandprofitsaregrowingupbecauseofthe • customer requesting to buy the product because of the high level of promotion on the product's quality, in this point the competition being aggressive, the organization trying to achieve the maximum rate from profits during: • modifying theproducts. • Expanding the marketshare. • Adding anew cannels forsales. • Adjusting theprice. • Promotion. • Maturity stage: • In this stage the competition became very strong, so the costs of promotion campaign are in cress, which reflect negatively on theprotests. • And the product stay longer in this stage from the lattés stage because it become wellknown. • In this stage the competition become stronger and the challenge difficult and keeping high-test, market share will become strongerand

13. more difficult and may be the company will searching for more markets (opportunities) added to the other lattésstrategies. • 4) Declanstage: • Reducing in the sales and profits size because of the customer needless, to buy the product, because the competition products entered to the market. In this stage the company will make one of the following procedure: • drawing the product from themarket. • developing and improving theproduct. • searching for anew uses for theproducts. • searching for a newmarkets. • continuing with the recent product and changing the marketingmix. *Product planning , Process design Productplanning: It's approaches including all the activates which madethe producers deterring the product which he wont marketing it. It's all about choosing the product. Introducing it to the market and costumer depending on searching and developing the good abilities and modern techniques. Process design: It'stheactivatesdoingbytheoperationmanagementtoproduce the product to the market and the designing mean making the activate, the parts and the elements for having efficiency and aright quality products. The organization should takes in the concede red many futures in the product design and that’s:

14. Studding the product and the market that’s we called searching and developing. The external environmentchonqs. The reclaim ship between decision and the other operations and the kind of the producing system and the product lifecycle. New TechniceSystems: Flexible manufacturing system: It's accurate interfusion system between the computer and communication control and manufacturing operations which make the producing development response fatly and economically with acomplet way for the main changes in the environment which the organization work init. Application method of FMS: When the computers exist the factors depends on digital controlling machinesintheproducinglineswhichisworkingwithouthuman interference, all the controlling system connecting with machines , the machines connecting with the a controlling unit for each one each part woke dementedly by a single computer connected with a central computer. FMSimportance: Ithastheabilitytochangetheequipmentandtheconnectedparts with it, without helping from human , that's all guaranteed the rescheduling the production if any of it stopped. It's conceder complete from the factoryAutomatic FMSbenefits: using best equipment. Best way for time takingadvantage. The ability to response for the designing changes immediately. 4- The clear specialty for the humanresources.

15. 5- The wide range of the managerial control. 6- Stability in products qualitylevel. • Reducing the defects possibility. • Developing the designing quality and theflexibility. • Achieving the best machining for the costumer needs. • Computer Aided Design: • It means using the computer abilities for product designing operations, It's programming system includingmay self techniques like • computer charts which used for the product visualproperties. • (CAD) system contains of one or more visual station joined with a high quality numeric computer including paint programs provides to the designer the ability of creating the engineeringforms. • CAD benefits: • Totally reducing the new products presentativetime • High ability for avoiding the expensive mistakes in designing and production. • Reducing the products manufacturing times. • Improve the design and manufacturing quality. • Stimulate the design teams to the competition dialoging and useful interaction. • The real contribution in achieving communications betweenthe • designer and the producer throw the computer. • The contribution in increasing the designer productivity. • high ability for saving and restoring the design data quickly and in any time. • Support the designflexibility. • high ability in transforming the final product design options to orders to production machines for making the final manufacturing process. Computer AidedManufacturing:

16. It's the technology which used the specialized computer software to directed and controlled the manufacturing tools, with out bounding (CAD)system. • We can distinguish between two main kinds of (CAD) application: 1- The direct control on the manufacturing operations withcomputer • help. • Indirect control on the manufacturing activities liking the control on the storage, power planning, scheduling the production, planning the needs of raw materials, controlling or work centers and determine the quality charge and distribution. • Benefits and properties (CAM)system: • product quality, (CAM) system gives design information quicklyto • (CAM) system which leads to accrete product quality and fast delivery for thecostumers. • Contribute in the success application for mass customizationsystem inproduction. • Achieving the competition precedence's for the organizationlike • speed delivery, lowest cost, high flax ability and the extraordinary productquality. • Improving resources throw the goodscheduling. • Computer integrated Manufacturing: • It's the system which include integrate between engineering product design , the flexible manufacturing , operations and (CAM ). • Soit'sincludeproductionanddesigntechnologyandFlexible • manufacturing, (CAD , CAM ,FMS). • This system gathering between the equipments, tools, system soft wares, Data base management and thecommunications. • (CIM) system achievementstages: • 1- First stage/ integrating and perfection activities (CAD, CAM, FMS).

17. Second stage/ integrating the internal activities of production to achieve (CIM). Third stage/ totally integrating between (CIM) and the other functionsandthesuppliersandthecustomersandit'scalledthe complete project in using the computer(CIB). Properties of achieving the (CIM)system: reducing the direct work costs and reducing the qualitycosts. Production a small quantity suitable with economics response for wide from the demand and support the competitiveadvantage. Thefastresponseforthemarketchangesandintroduceanew products. Improving the product quality and in creasing theproductivity. Reducing the west and increasing the benefits from the equipments andtools. Capacity concept It's the available product ional ability in the industrialproject containing the stand still and the new and also the neglected one, all that within certain production style during fixed period oftime. * Kinds ofcapacity: Theoretical capacity. Maximumcapacity. Operatingcapacity.

18. utilizedcapacity. • Actual capacity. • planning capacity. • Q/ Question aboutcapacity: • The capacity of one of factory is (5000) unit. After four months form the beginning of the year this factory dud thefollowing: • add new machine which it's capacity is (1500)unit. • Ignore a machine be cons it is useless which it's capacity is (500) unit. • Determine net capacity for the whole year and the period ofutilized? • Net capacity for whole year = 5000 + 1500 – 500 = 6000 unit. Net capacity for the period of utilized = 8 12 5000+1500 * 8- 500* = 5667unit. 12 • Question about capacity levels: • From the information bellow determine the deferent capacitylevels: • Machine prediction average (2) unit in hour/ • The deportment working. (6) day. In a week, (8) hour in aday. • Stop working because of holidays (14) days in ayear. • Machines maintenance, (160) hour in ayear. • Demand average (3000) unit in ayear. • Expected sells volume in a year (2800)unit. • Theoretical cap. = 365 * 24 = 8760 hour. Maximum cap . = 365 * 8 = 2920hour. • Latedtime: • Fridays = 52* 8 =416 • Holidays = 14 * 8 =112 • Maintenance =160 • 688 hour • Operating cap. = 2920 – 688 = 2232 hour Utilized cap. = 2232

19. Planningcap. = 3000 1500unit 2 Actualcap. = 2800 1400unit 2 ProductionBalancing: It is the equalization statement between the product ional capacity is the out puts for each stage of the series production stages on the production convert bealt. Bottle neck: It happens when the production of the last product ional stage bigger than the production of the comingstage. Slacktime: It happens when the production of the coming stage bigger than the production of the laststage, Non- production Balancingreasons: 1- The changing which happen in the manufacture operation. 2- The differentiation in the productivity of the working staff. 3- The difficulty in forecasting of the machineserrors. The methods of increasing the balancing point in the productionline: 1- changing number of the working stations or number of machines. 2- Modified the standard times for productivity (modified) each unit/ 3- Participating the product ionallines. Important ofBalancing: decrease the stocks under. Realization the max important from the productionelements.

20. Ex: copy bureau work (250) days in a year, (8) hours daily, the spare capacity is%15. Determined the No. of machines needs to print two books for two customers by using the informationbellow: [DPD/QS]X[DPD/QS]Y N1C/100 M [2000*0.52000/200.25][6000*0.76000/300.40 15 250*2 *81  100  1.5602 Machains S machine structure time DNo. ofcopies P Treatment time C Sparecapacity N Number hours in the year Q Middle volumedeal Ex: product cross four work stages, every stage has known kind of machines, and every machine has defect ratio, the expect demand on this product (1000) unit in a year, determine: 1- Q. of total production. 2- Q. of good outputs. Quantity of defect. Over capacity in the four stations. D TP  1d11d21d3 1 d4

21. 1000 TP  10.0210.110.05 10.03 = 1118.57 = 1119unit D Expected demand D defect demandratio 6 1119 1000%100 1000 The plant location choosing: The effective of the plant location: 1- Nearness to good highways. Laborsupply. Nearness to market. Nearness to rawmaterial.

22. 5- Nearness to an existing plant. 6- Availability ofland. Transportation. Watersupply. Powersupply. Avoiding Risky areas. 11-Taxes. clime ate. Servicefacilities. pollutioncontrol. * The modern direct in choosing location for industrialproject: Establishing the factories in for locations from the big cities. Concentrating on putting the factories in special areas named the planned industrialcenters. Distributing the factories of a special project on manyareas. * The usage methods of choosing the projectlocation: 1) Quality factors method: Ex) The table bellow contain in formation a bout one of an organizations determine the best location by using the quality factorsmethod?

23. 2) Costs method: Ex: The table bellow contain information about one of an organization. Determine the best (5000) unit yearly and the expected sell price to each unit is (150) dinar? And what is the expected profit when choosing thislocation? Total costs = fixed costs + changing costs * production size A. location = 120000 + 50 * 5000 =270000 B. location = 150000 + 25 * 5000 =275000 C. location = 250000 + 10 * 5000 =300000 The B location is thebest The expected profit = production size * sell price – totalcosts = 5000 * 150 –275000 =475000 Q : The table below contain information about one of an organization. Determine the best (4000) unit yearly and the expected sell price to each unit is (150) dinar? And what is the expected profit when choosing thislocation?

24. Plant layout: • It's the planning for the materials progress in order to become a complete and the line of the parts progress constituting the product and all the production operations to achieve the best possible economical results and the way of arranging the machine inside the production departments as well as arranging the department in side thefactory. • The plant layoutaim • Thiswillleadtoachieveapossiblemaximumproductiveefficiency • in order to decrease the time and costs required for transforming and handling the materials as well as the movement of the individuals in side thefactory. • Facilitylayout: • It's the means (variety of means) used in the productive operations like equipment and machines of differentkinds. • There are many kinds of facilitylayout • layout byproduct. • layout by process (functionallayout) • layout by fixedposition 4- groupslayout

25. * Production total planning and major productionscheduling To achieve the production plan, top management must take many decisions: Determined the expected Demandsize. Determined stocklevels. Productionscheduling. Determined human re sours. Determined Technical needs ofmachines Marketstudy Productstudy • * The are many data resours me need for market study and product study: • consumer • customer • middle men • sales department • Executive managers • Historical Data • Production total planning: • It's a links between the demand and major schedule production which would define the capacity and throw plan the requirements of materials. • Demand (long- term) production schedule (medium term) requirement (short – term) • Productionscheduling • It's a set of scientific methods and schemes aimed at reaching the bestuseofavailableresourcestoachievethegoalsoftheorganization,a

26. detailed time schedule showing times of the beginning of production and entitlement. For the purpose production scheduling must be available the following: Business and tasks. Activities. human power (workers) Machines andequipments. Thefacilities. * The scheduling aims interview schedule clientrequests. reduce delays to a minimum in thework. speed of response tocustomers. Reduce the time spent in the production system by reducimy the extra time. Reduce the use of resources by achieving the maximum benefit from them. Reduce the time unemployed (loss). Reduce the stock under theoperating. * Scheduling kinds: human power scheduling. manufacturing processscheduling. * Productioncontrol Chantcharts It's a group of scientifically measures and schemes aiming at achieving the best use of the availableresources.

27. * Chant charts importance Explains the range of progress in performance compared with the set plan. Explains the problems (difficulties) occurred due to performance and those one expected to take place in order treat them intime. It's a good and effective tool in planning for the industrial operations though they are inflexible, * Chantt charts kinds loadcharts. Recordcharts. progress charts 1- Localcharts the plannedwork …………………..the actualwork

28. 2- Recordcharts: ------- the plannedwork S ----machine stopped P--- lowperformance ………..the actualwork M---maintenance work L—arrival late 3- Progresswork theplanned ………………..the actualwork

29. StoresManagement: Stores Managementconcept It’sthestudyofplanningandorganizingallactivitiesaimedatthe flow of materials and goods in the quantities and qualities required, as well as receiving and inspection of materials and goods imported to the facility and stored in appropriate locations to protect then from loss, theft or damage up to the a ward to those who request them in the inside and outside thefacility. The relation between operation Management and storesmanagement: Operationmanagement,it'stheconnectingchainbetweentheraw materials warehouse and the complete product , taking and receiving the raw materials and the production necessities from the ware house and handling complete product to the warehouses. Arithmetic samples for storescontrolling: Ex: A factory for producing (2000) unit of a specific article, if you have the following information the unit price (5) dinars, the cost of Issuing the order one (5) Diners the cost of maintaining in inventories during one year (1.5) Diners, in addition to the cost of capital investment estimated %10 of the purchase pricedetermine: The volume of economicorder. The cost ofinventories No. of orders during theyear Period of time betweenorders Re-order Point Q K N T R (Note: That the supplier needs (7) day to receiver theorder)

30. Q order volume D Demand rate per unittime C1 The cost of issuing therequest C2 The cost of maintaining inventories L a deliveryorder 1.5 +0.1 * 5=2 220005 2DC1 1)Q 100unit C22 2)K2C1DC2 2520002200Dinar 3) ND 2000 20 Q 100 4) T 1 * 365 1 * 365 19day N 20 D 5) R * L 2000 * 7 39unit 365365 Q : A factory for producing (4000) unit of a specific article, if you have the following information the unit price (10) dinars, the cost of Issuingthe

31. order one (5) Diners the cost of maintaining in inventories during one year (2) Diners . Determine: The volume ofeconomicorder. Q The cost ofinventories No. of orders during the year Period of time betweenorders Re-order Point K N T R (Note: That the supplier needs (7) day to receiver theorder) Materials Requirement planningsystem: MRP systemconcept: A logical sequence of actions and complementary to each other, some a method for inventory management in order to reduce the level at in vestment to the extent that it enables management of the company to meet the contents of the production schedule depending on the computer and in an in targeted manner with a view to product planning and control flow to complete the production of goods in their maturitydates. (MRP) is one of the information technologies that have evolvedand spread rapidly during the seventies, and because of the intense competition to improve quality and reduce the waiting time (MRP) system became an important element in computer integrated mama fracturing systems(CIM). Processofplanningandcontrollinginventoryplaysavitalrolein achieving the goals of production management and operations in various organizations and through more efficient use of resources to reduce costs receipt and delivery of products in a timely manner and improve the services provided to customers conducive to achieving the

32. competitive advantage of the organization, and through MRPS is all of thesegains. There are two types of invent to vies for the request: 1- Stocks of final products to in dependent , and depends on the demand for casting through the experience and statisticalmethods. MRP 2- Stocksofrawmaterialandproductioninputs dependent to demand, and depends on the purchase ormanufacturing. we can determined levels of inventories by type of request: 1- incase of in depended demined ( final products) Ordinary inventorylevel inventorylevel time The startof production productionstops receipt theorder 2-in case of depended demined ( production input and rawmaterials) inventorylevel Ordinary inventorylevel time 32 receipt the order The startof productionstops production

33. Inputs and output of MRP Masterproduction scheduling input MRP Product structure or bill ofmaterials Inventoryrecord MRPsystem Planned orders / production managementsactivities outpu t Notice re- scheduling Requisitions/ purchasedemand Workorders *The main production Scheduling inputs:- Realrequests

34. forcastin Themain determinants ofcapacity Themain production Scheduling Levels inventory Otherapplications Of the plants Ordersfor R&D Spareparts Safety Stock Needs of theshows Production schedulingsample:

35. Ex: The table below shows the expected demand for the product(x) where a stock's first term (60) unit and the production batch size approved (90) unit the required the main productionscheduling. Thestages: Total requirement for product = all ordersforecast Quantity of produce required = The first = term stock –(1) Closing in victory = (first term stock + batch production ) –(1)

36. Major production scheduling for product(x) MRP outputs: Motion and workreports. Capacityreports Inputs & out patsreports Anotherrepast MRP benefits: Inventory planning andcontrol Capacity requirementsplanning Anotherbenefits Q: The table below shows the expected demand for the product (x) where a stock's first term (60) unit and the production batch size approved (50) unit the required the main productionscheduling.

37. Q2: Draw The main production Schedulinginputs? Just in time: Is a modern idea emerged in the Japanese industry. Toyota motor corporation and has achieved successes in the early eighties distinct and widespread in Japanese companies and outside. A system (JIT) described as a philosophy of combiningmodern technology and old, which makes their application possible in all areas of business from production purchase anddelivery. ThesystemJITrunningproductionsystemcapableofsimpleand efficient to make optimal use of resources , in preparation to meet the real demands of consumers to quality and quantity required, on time and rightprice. The philosophy of the (JIT) system based on primary beliefs, namely: reduce waste in all forms continuous improvement of production processes and the system as a whole. Developingtheskillsofworkersandincreasetheirparticipationin the decision – making.

38. Consideration could be given to the ( J I T) system through three dimensions: philosophy ofmanufacture. Design and planning techniques. Control techniques on the production lines which specializes in using the (kabana) cards , to control the production and the follow of raw materials and inventories underconstruction. JITconcept: Entrance to improve the overall productivity Entrance to improve the overall productivity and eliminate waste and to take preventive measures for the production of low cost, with the delivery of essential parts of the quantity and quality required and ontime. Aims of JITS: zero defect :- use measure to ensure access to quality characteristic of all stages of production zero inventory:- reduce the inventory to minimum and directing resources towards modern technology The size of small boost:- The(JITS) small batch production and is essential to reduce inventories by a- Levels of inventories made under the work in process b- The time it takes for the flow ofmaterial Preparation time zero(set upzero):- Aims to balance the cost of maintaining inventory and the cost of preparing for order , the large payments made in excess of the cost of high stocks , but it reduces the cost of order numbers and the small payments , it reduces the cost of inventories and increase the numbers of the orders, it is imoerati to the balance between them to reduce it to minimum through the re-design and development of machines and change in the internal configuration of the plant. Zero loadtime:-

39. For the purpose to be achieved their must be synchronization between the design of the production system and product and operation m lead to achievement of efficiency in production and rapid response to the ever – changing desire of customer Zero handling:- That the design of components and sub-grouping by reducing theactivity of handling and assembly to achieve reducing in the time limits for the product. Zero breakdown:- The system uses preventive maintenance programs that reduce breakdown and alargerate. Requirements of(JIT): Key clement in the philosophy of (JIT) the system of cards (kanban), a technique programmer to manually control the outputs, the implementation requires provide the requirements of the taskincluding: continued support of themanagement: It means support Top management by continued basis for changes in trends and processes within the enterprise andbeyond. Theinternalorganizationofthefactory(plantlayout)tobeany internal organization of the plant continuously and development of methods for handling raw materials and other parts in a manner to ensure efficient flow of theproduct. Focusedfactory: Means the appropriate logical kinks between the real demand and product design, and includes multiple factories with in the factoryone. Thesesmallfactoriestotalmanufacturingnetworkeverysmall plant is designed to deliver the output to another factory and sequentially to the final stage in the path and the time. GroupTechnology: uses on the analysis and comparison of parts and products on order to reduce various of waste in waiting times, transport and storage, space , product assembly and parts similar characteristics such as shape, functionandmanufacturingoperationsinfamilies.Soasassembly

40. machines in groups called (groups) and each group of machines specialize in the production of a single family ofproducts. The benefits of usingJIT: ReducedInventory: Throughthearrivalofmaterialsandpartswhoneeded,andthe essence of the idea is to remove the sources of loss resulting frap, waiting for materials and parts for processing as wells as considerable in vestment inventories which is a freeze on capital can be used and directed to the development of different techniques in an industrial facility. increasing productivity: Through the reduction of time limits and the rate of defective productionandcapitalexpenditureandtheapparentincreaseintheuse of multiple human resource skills, and increase capacity utilization through scheduling and the use of similar methods of preventive maintenance to prevent interruptions and reduce productiontimes. Rapid response to the wishes of consumers: Through the daily schedule replica by a large reduce (fall) and tangible to the adopted lead time. Cost saving: by reducing the cost of inventories as is the delivery of materials and parts purchased and processed immediately when needed and the quantity required and accordance with the logic of zero inventories and also achieve harmony and avoid re-work and reduce the rates of changes in the product and processes by the customer or the plant and reduce the space required for the production, stock piling and reduced working hours and reduce the direct work.

41. Increase Raven up: Thereductionincostisreflectedintheprovisionofbetterservice to the customer and increase sales and profits achieved and enhance the competitive position of thefacility. Work forceDevelopment: Through training and staff development in the workof maintenance the creation of machines and correct defects and their participation in addressing the problems of quality and decision making leading to increased satisfaction of the employees and their loyalty to the facility. Determinants of the applicationJITS: JIT system philosophy suited to production environment with the frequent need for certainconditions. JIT system works follow this better as the location of suppliers close to theestablished. Requires the implementation of the JIT system and the adoption of a limited number of combinationproducts. Require the implementation of the JIT system Reorganization andthe necessary preparation to meet the production line stops and to identify areas that show theproblems. Successful application of the system needs to support and assist employees and supervisors in their product lines and focus on teamwork as well as the collective goal, not individualgoals. The arrival of materials n a timely manner the required quality with the need to provide an efficient program formaintenance. Characteristics of the facility that applies(JITS):

42. Size of the facility and complexity of products and flexibility of operations. • The capacity of business to meet the demands ofconsumers. • The quantities produced, the capacity of delivery isallowed. • The value of sales as a percentage of the final value forconsumer. • Predictability of future sales. • The availability of quantitive data and the degree of precision required for eachproduct. • The ability to approval ofcontracts. • Key elements in the application of(JITS): • 1) Maps that is the best description of the push system, which differs from the system of Kanab an system, and directing this systems by main production scheduling which determine the requirements of product which mean it's composition of the technical. And the main scheduling branch to the detailed plan of products specific parts and com opponents that will be manufactured or purchased. • Is the system of pay mend through the transfer of production of raw materials and production in puts to the first duty station for processing and toward the final stage of the productionprocess. • The pull system begin from final stage, which sets production requirements and those requirements and with drawn from the previous phase it, so the material is subject to treatment only when there is demand from them the following process which leads to determine the amount of amount of inventories accumulated between duty stations. • 2) Quality control: • The quality in Japan more than the properties important in the (JIT) system because the (JITS) or by the goal of zero defect does not the allow defects because of their in toluene on enrolment in the production process, so the system is tore more all causes of errors to reach the concept of zero defect in spite of the change required both in the internal organization to the business or the responsibilities of workers.

43. This is accomplished through the application of thefollowing: The quality is responsible for production workers. Giving workers the power to stop the production process in the event oferrors. The case of production workers to re-manufacture of defective products to be identified by defective parts quantity andquality. 3) preventivemaintenance: One of the important elements in the application of the JITS, Top managementisfocusedonthebreakdownmachinesbecauseoftheir direct impact on the workflow, so the machine stops are not allowed in the (JITS) must also be established to take decisions to develop areqular schedule to check the machines and change parts, which are the responsibility of workers in production next to their routinework. 4-) scheduling in JIT Dependent industrial facility that uses scheduling (JIT) systemmajor running a full year , and gives rise to a detailed production schedule running from one month to two month ,and scheduling the production of specific ten days and characterized by stability depends upon where in the preparation of daily production scheduling Production department and be responsible for the implementation of the daily scheduling and achievement the correct amount. Should be kept at a levels of stocks of raw materials and materials made under the manufacturing zero when everpossible. After finalization of the production schedule reflects the transferof information in all places of work and stripping the suppliers and to apprise them of the requirements of schedulemain.

44. Optimized Production Technology (OPT) Optimized productiontechnology • is a proprietary scheduling system using, computer softwarewhich • was originally developed by Dr. Eliyahu Galodratt and colleagues who recognized that one of the most complex problems facing manufacturing organizations was that of shopfloorscheduling. • The system is based on the concept that there are two fundamental manufacturingphenomena: • Dependent events. All processes rely upon the completion of precedingoperations. • Statistical fluctuations. Process times fluctuate around anaverage. • AIM OFOPT • The aim of OPT is to schedule bottleneck capacity in an efficient way. This scheduleis • the master for the demand placed on othercapacities. • MAIN FEATURES OF OPT • The main features of OPT are described by Fax asfollows: • Balance flow notcapacity. • The level of utilization of any part of the system, which is not a bottleneck,is • dependent on other constraints in the system, not the potential of theworker. • The utilization and activation of a resource are notsynonymous. • An hour lost at the bottleneck is an hour lost for the totalsystem. • An hour saved at a non-bottleneck is just amirage. • Bottlenecks govern both throughput andinventories. • The transfer batch may not, and many times should not be equal to the process • batch.

45. The process batch should be variable, notfixed. • Schedules should be established by looking at all the constraints simultaneously. • Lead times are the results of the schedule and cannotbe • predetermined. • BENEFITS ofOPT • The benefits claimed for OPT are that it will schedule finite resources in orderto • achieve maximum factory effectiveness. • The schedulingsystem: • Addresses the key problem ofbottlenecks. • Improves profitability by simultaneously increasingthroughput. • . Reduces inventory and operatingexpenses • Rules for Scheduling with OPT(Goldratt) • Balance the flow, not the capacity. • Utilization of a nonbottleneck is determined by a constraint in the system (abottleneck). • Utilization and activation of an input are not thesame. • Any output loss at a bottleneck is a loss for the entiresystem. • Gains at nonbottlenecks do not translate into gains at the bottleneck or for the entiresystem. • Bottlenecks determine the throughput and inventorylevels. • For optimization, transfer batches may not equal processbatches. • Process batch sizes through the system should not befixed. • Establish schedules after evaluating all constraintssimultaneously.