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100 Operations Management models, diagrams and charts for powerful business presentations and knowledge. Content: Transformation Process, In-Output, Macro Operations, Physical Buffering, Operations Strategy, Process Design, Manufactoring, Supply Chain Management, Vertical Integration, Assembly Operations, Capacity Leading Strategy, Product Technology, CAD, Job Design, Capacity Planning, Inventory Management, Economic Order Quantity, Pareto Curve, ABC Analysis, Material Management, Master Production Schedule, Layouting, Production Plan, Just-in-Time, Quality Management, PDCA Cycle, Process Reengineering, Cause Effect Diagram, Pareto Diagram, Why Why Analysis, TQM, Operations Network, Buffer Inventory/nMore business diagrams to download on http://www.drawpack.com your visual business knowledge

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Slide1 l.jpg

Plan

Act

Do

Check

Operations Management...

100 Slides

Powered by www.drawpack.com. All rights reserved.


Slide2 l.jpg

Key Words...

Transformation Process – In-Output – Macro Operations – Physical Buffering – Operations Strategy – Process Design – Manufactoring – Supply Chain Management – Vertical Integration – Assembly Operations – Capacity Leading Strategy – Product Technology – CAD – Job Design – Capacity Planning – Inventory Management – Economic Order Quantity – Pareto Curve – ABC Analysis – Material Management – Master Production Schedule – Layouting – Production Plan – Just-in-Time – Quality Management – PDCA Cycle – Process Reengineering – Cause Effect Diagram – Pareto Diagram – Why Why Analysis – TQM – Operations Network – Buffer Inventory


Operations function narrow definition l.jpg

Engineering/

technical

Operations

management

Product/service

development

Marketing

Personnel

Purchasing

Accounting

and finance

Extent of the operations

function

Operations Function: Narrow Definition


Operations function broad definition l.jpg

Engineering/

technical

Operations

management

Product/service

development

Marketing

Personnel

Purchasing

Accounting

and finance

Extent of the operations

function

Operations Function: Broad Definition


Input transformation output processes l.jpg

Input

transformed

resources

Materials

information

customers

Environment

Input

Output

The

transformations

process

Goods

and

services

Environment

Facilities

staff

Input

transforming

resources

Input-Transformation-Output Processes


Output a mixture of goods and services l.jpg

Pure Goods

Tangible

Can be stored

Production precedes consumption

Low customer contact

Can be transported

Quality is evident

Crude oil production

Aluminium smelting

Specialist machine tool manufacturer

Restaurant

Computer systems services

Pure Services

Intangible

Cannot be stored

Production and consumption

are simultaneous

High customer contact

Cannot be transported

Quality difficult to judge

Management consultancy

Psychotherapy clinic

Output: A Mixture of Goods and Services


Macro and micro operations l.jpg

Information

from customers

Computer

systems

Survey and

analysis staff

Market

forecasts,

sales

proposales

and plans

Marketing

and sales

Wood, steel,

plastic, etc.

Carpenters

Machines

Scenery

and

props

Broadcasting

and programme-

making

equipment

Test and repair

equipment

Staff

Adapted,

maintained and

repaired

equipment

Set and props

manufacture

Engineering

Macro and Micro Operations


Micro operations and business processes l.jpg

Micro operations

Marketing

and sales

Set and props

manufacture

Engineering

Production

units

Finance and

costing

Preparing quotations

Customer needs

Business processes

Customer needs fulfilled

Programme production

Promotional and advertising contracts

Technical support contracts

Music videos

Size of each micro operation‘s

contribution to each process

Micro Operations and Business Processes


Physical buffering l.jpg

Buffer

The operation

system

Buffer

e.g. Physical inventories of raw materials and components

Material

processors

e.g. Physical inventories of finished goods

e.g. Databases in national and local government

Information

processors

e.g. On-line subscriber services of financial data

e.g. Queues and waiting lists at hospitals

Customer

processors

Not applicable

Physical Buffering


Organizational buffering l.jpg

Staff

Funds

Personnel

Accounting

and finance

The

operation

function

Purchasing

Marketing

Suppliers

Customers

Product/services

development

Technical/

engineering

Staff

Process

technology

Organizational Buffering


A typology of operations l.jpg

Implication

Implication

Low repetition

Each staff member performs

more of job

Less systemization

High unit costs

High repeatability

Specialization

Systemization

Capital intensive

Low unit costs

Low

Low

Low

Low

Volume

Volume

Volume

Volume

High

High

High

High

Flexible

Complex

Match customer needs

High unit costs

Well defined

Routine

Regular

Low unit costs

Changing capacity

Anticipation

Flexibility

In touch with demand

High unit costs

Stable

Routine

Predictable

High utilization

Low unit costs

Short waiting tolerance

Satisfaction governed by

customer perception

Customer contact skills

needed

Received variety is high

High unit costs

Time lag between production

and consumption

Standardized

Low contact skills

High staff utilization

Centralization

Low unit costs

A Typology of Operations


Operations management and strategy l.jpg

Environment

The operation‘s

strategic objectives

Input

transformed

resources

Operations

strategy

Operations

strategy

The operation‘s

competitive role

and position

Materials

information

customers

Operations

strategy

Input

Output

Goods

and

services

Design

Improvement

Planning

and control

Facilities

staff

Input

transforming

resources

Environment

Operations Management and Strategy


The three roles of the operations function l.jpg

Operations as effector

Being the „implementer“

of strategy

Operations as follower

Being „appropriate“

for strategy

Operations as leader

Being the „driver“

of strategy

Strategy

OPS

OPS

OPS

OPS

Strategy

Strategy

OPS

Operations must „make

strategy happen“ by trans-

lating strategic decisions

into operational reality

Operations must support

strategy by developing

appropriate objectives

and policies for the

resources it manages

Operations must provide

the means to achieve

competitive advantage

The Three Roles of the Operations Function


The role and the contribution of the operations function l.jpg

Give an

operations

advantage

Increasing contribution of operations

Redefine the

industry‘s

expectations

Externally

supportive

Link strategy

with operations

Be clearly the

best in the

industry

Internally

supportive

Adopt best

practise

Be as good

as competitors

Externally

neutral

Correct the

worst problems

Stop holding

the organisazion

back

Internally

neutral

Stage 1

Stage 2

Stage 3

Stage 4

The

ability

to implement

The

ability to

be appropriate

The

ability to

drive strategy

The Role and the Contribution of the Operations Function


External and internal effects on the performance objectives l.jpg

Low price

high margin,

or both

Short delivery

lead time

Cost

Dependable

delivery

High total

productivity

Speed

Dependability

Internal effects of

the five performance

objective

Fast

throughput

Reliable

operation

Error-free

processes

Ability to

change

Quality

Flexibility

Frequent new

product/services

Wide product/services range

Volume and

delivery adjustments

On-specification

products/ services

External and Internal Effects on the Performance Objectives


The influences on the relative importance of performance objectives l.jpg

The influence of the

organization‘s customers

What are order-winning,

qualifying, and less

important factors to them?

The influence of the

organization‘s competitors

How does the operation

react to changes in the

way competitors

behave?

The relative

importance of each

performance objective

to the operation

The stage of the

organization‘s products

and services in their

life cycle

Are products and services

at their introduction, growth,

maturity or decline stage?

The Influences on the Relative Importanceof Performance Objectives


Different competitive factors and performance objectives l.jpg

Competitive factors

If the customer value these...

Performance objectives

Then, the operation will need to

exel at these...

Low price

Cost

High quality

Quality

Fast delivery

Speed

Reliable delivery

Dependability

Innovative products and services

Flexibility (product/service)

Wide range of products and services

Flexibility (mix)

The ability to change the timing

or quantity of products and services

Flexibility (volume and/or delivery)

Different Competitive Factors and Performance Objectives


Order winning and qualifying objectives l.jpg

Order-winnig

factors

Qualifying

factors

Less important

factors

Competitive

benefit

Competitive

benefit

Competitive

benefit

Performance

Performance

Performance

Order-winning and Qualifying Objectives



Effects of the product service life cycle l.jpg

Introduction Objectives

Growth

Maturity

Decline

Product/ service

first introduced

to market

Product/ service

gains market

acceptance

Markets needs

start to be

fulfilled

Market needs

largely met

Volume

Slow growth

in sales

Rapid growth

in sales volume

Sales slow down

and level off

Sales decline

Customers

Innovators

Early adoptors

Bulk of market

Laggards

Competitors

Few/ none

Increasingly

number

Stable

number

Declining

number

Variety of product/service designs

Possible high

customization

or frequent

design changes

Increasingly

standardized

Emerging

dominant

types

Possible move

to commodity

standardization

Likely order winners

Product/ service

characteristics

performance

or novelty

Availability

of quality

products/ services

Low price

dependable

supply

Low price

Likely qualifiers

Quality

Range

Prince

Range

Range

Quality

Dependable

supply

Dominant operations performance objectives

Flexibility

Quality

Speed

Dependability

Quality

Cost

Dependability

Cost

Effects of the Product/Service Life Cycle


Design activities in operations management l.jpg

The general principles Objectives

of design in operations

The

design of

products and services

The

design of

processes

Concept generation

Screening

Network design

Preliminary design

Layout

and flow

Evaluation and improvement

Process

technology

Job

design

Prototyping and final design

Design Activities in Operations Management


Design screening l.jpg

Concept Objectives

Large number of design options

Uncertainty

regarding

the

final

design

Choice

and

evaluation

screens

Time

Certainty

regarding

the

final

design

Final design

specification

Design Screening


Process types in manufacturing operations l.jpg

Low Objectives

High

Variety

Volume

High

Project

Jobbing

Batch

Mass

Continous

Low

Process Types in Manufacturing Operations


Process types in service operations l.jpg

Low Objectives

High

Variety

Volume

High

Professional services

Service shops

Mass services

Low

Process Types in Service Operations


Line of fit of process to volume variety characteristics l.jpg

Manufacturing Objectives

operations

process types

Variety

Service

operations

process types

Volume

Project

Professional

service

None

Less

process

flexibility

than is

needed

so high

cost

Jobbing

Service

shop

Batch

Mass

Less

process

flexibility

than is

needed

so high

cost

Mass

service

Continuous

None

The natural line of

process to volume variety

characteristics

Line of Fit of Process to Volume/Variety Characteristics


The customer marketing design feedback loop l.jpg

Interpretation Objectives

of expectation

Expectations

Marketing

Product/service design

Operations

Customer

Product/

service

specification

Product/

service

The Customer-Marketing-Design Feedback Loop


Stages of product service design l.jpg

Concept generation Objectives

Screening

Preliminary design

Evaluation and

improvement

Prototyping and

final design

The

concept

The

package

The

process

Stages of Product/Service Design


Concept generation from internal and external sources l.jpg

Internal Objectives

sources

External

sources

Analysis of

customer needs

Marketing

department

Market

surveys

Suggestion from

customers

Suggestion from

customer contact

staff

Actions of

competitors

Ideas from

research & development

Concept generation

Concept Generation from Internal and External Sources


From an idea to a concept l.jpg

Idea Objectives

From

The overall shape

of the product or service

Adventure holiday

for young people

Adventure holiday

for young people

Function

The way in which the

product or service operates

  • A holiday which is

  • One week long

  • Residential

  • Multi-activity

  • Adventure

  • In a safe but

  • Exciting envirnonment

  • For 14 to 16-year-old

  • Boys and girls

  • Away from their parents

  • A telefone which is

  • In lower quartile

  • price range

  • Multi-coloured

  • Fashionably styled

  • Easy to use

  • Dual position

  • Capable of use

  • with two carriers

Purpose

The need the product or

service is intended to satisfy

Benefits

The advantage the product

or service will bring

to customers

Idea

From an Idea to a Concept


Concept screening l.jpg

Many concepts Objectives

Marketing screen

Operations screen

Financial screen

Acceptable

concepts

Concept Screening


Effect of a delay in time to market l.jpg

Cash Objectives

Sales revenue

Cash flow

Delayed sales revenue

Delayed cash flow

Time

Development costs

Development costs of delayed project

Delay in

time to

market

Delay in

financial

breakeven

Effect of a Delay in Time to Market


Organization structures for design activity l.jpg

P.M. Objectives

P.M.

P.M.

P.M.

P.M.

Increasing project

orientation

Pure functional organization

P.M.

P.M.

P.M.

P.M.

P.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M. = Functional Manager

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

F.M.

P.M.

P.M.

P.M.

P.M.

P.M.

P.M. = Project Manager

P.M.

P.M.

P.M.

P.M.

P.M.

Pure project organization

Organization Structures for Design Activity


Total and immediate supply networks l.jpg

First-tier Objectives

customers

Second-tier

customers

Second-tier

suppliers

First-tier

suppliers

The

Operation

Supply side of

the network

Demand side of

the network

The total supply network

The immediate supply network

Total and Immediate Supply Networks


Vertical integration for an assembly operation l.jpg

Downstream vertical integration Objectives

Raw materials

supplier

Component

maker

Assembly

operation

Wholesaler

Retailer

Upstream vertical integration

Raw materials

supplier

Component

maker

Assembly

operation

Wholesaler

Retailer

Stages owned by the organization

Vertical Integration for an Assembly Operation


The extent of process span of vertical integration l.jpg

Narrow process span Objectives

Raw materials

supplier

Component

maker

Assembly

operation

Wholesaler

Retailer

Wide process span

Raw materials

supplier

Component

maker

Assembly

operation

Wholesaler

Retailer

Stages owned by the organization

The Extent of Process Span of Vertical Integration


The balance of internal external trade l.jpg

Vertically integrated stages deal Objectives

only with each other

Raw materials

supplier

Component

maker

Assembly

operation

Wholesaler

Retailer

Vertically integrated stages also

sell to/buy from other companies

Raw materials

supplier

Component

maker

Assembly

operation

Wholesaler

Retailer

Stages owned by the organization

The Balance of Internal/External Trade


Supply and demand side factors in location decisions l.jpg

Supply-side Objectives

factors

Which vary in

such a way as to

influence cost as

location varies

The

operation

Demand-side

factors

Which vary in

such a way as to

influence customer services/ revenue as location varies

  • Labour costs

  • Land costs

  • Energy costs

  • Transportation costs

  • Community factors

  • Labour skills

  • Suitability of site

  • Image

  • Convenience for customer

Supply- and Demand-Side Factors in Location Decisions


Capacity leading and capacity lagging strategies l.jpg

Volume (units/week) Objectives

Demand

Capacity leads demand

Capacity lags demand

Time

Capacity-Leading and Capacity-Lagging Strategies


Relationship between process and basic layout types l.jpg

Manufacturing process Objectives

types

Basic layout

types

Service process

types

Fixed-position layout

Project processes

Professional services

Jobbing processes

Process layout

Service shop

Batch processes

Cell layout

Mass processes

Product layout

Mass service

Continous processes

Relationship Between Process and Basic Layout Types


Volume variety and layout type l.jpg

Variety Objectives

Volume

Low

High

Flow is

intermittet

High

Fixed-position

layout

Process

layout

Cell

layout

Regular flow more feasible

Product

layout

Flow becomes

continuous

Regular flow more important

Low

Volume Variety and Layout Type


Types of cell l.jpg

Amount of Objectives

indirect resources included in

the cell

High

e.g. Specialist process

manufacturing cell

Internal audit group

in a bank

e.g. Plant-within-a-plant

manufacturing operation

Maternity unit

in a hospital

Proportion of the

direct resources

needed to complete

the transformation

included in

the cell

Low

High

e.g. Small multi-machine

manufacturing cell

Joint reference and

copying room in a

library

e.g. Complete component-

manufacturing cell

Lunch and snack

produce area in

supermarket

Low

Types of Cell


Relative rates of innovation for product and process technology l.jpg

Process Objectives

technology

Unco-ordinated

Systemic

Product

technology

Performance

maximizing

Product cost

minimizing

High

Process

technology

Rate of innovation

Product

technology

Low

Introduction

Growth

Maturity

Stage of development

Relative Rates of Innovation for Product and Process Technology


Volume and variety characteristics l.jpg

Variety Objectives

Volume

Low

High

High

Stand-alone NC machine tool

NC machining centres

Flexible manufacturing

systems

Flexible trans-

fer lines

Dedicated systems

Low

Volume and Variety Characteristics


Increasing integration of manufacturing technologies l.jpg

Designing Objectives

Controlling

Handling

Managing

Computer-aided

design (CAD)

Computer-aided

manufacturing

(CAM)

Automated guided

vehicles (AGVs)

Robotics

Loading

Scheduling

monitoring

INTEGRATED

INTEGRATED

The computer-based

systems of other

functions, suppliers

and customers

CAD/ CAM

FMS

INTEGRATED

CIM

INTEGRATED

CIE

Increasing Integration of Manufacturing Technologies


The growth in telecommunication services l.jpg

Network services Objectives

Home shopping

Cashless services

Video games

Home banking

Video conference

Multimedia database

Interactive video

Telewriting

Smart card comms

Personal numbering

Videotext

Mobile videotext

Telenewspaper

Intelligent network

Translation

Artificial reality

Virtual reality

Hi-Fi telephony

Teleworking

Mobile videophone

ATM

Frame relay

Speech fax

Archiving

Centrex

SDH

X400

Telepresence

Voice messaging

Image transmission

Remote computing

Voice conference

Video conference

Star services

Alphanumeric paging

Mobile telephony

Colour fax

Telemetry

ISDN

LinklineDDSN

Satelite TV

Cable TV

Paging

Teletext

Multimedia

Mobile telephony

EDI

CCTV

Satelite services

Colour TV

Stereo radio

999 service

Private circuit

TV

Telex

Radio

Telegram

Telephony

Telegraphie

1850

1880

1930

1970

1980

1990

2000

The Growth in Telecommunication Services


The elements of job design l.jpg

What Objectives

tasks?

What

sequence?

Where to

locate

What

skills

Who

else?

How to

interface

with the

facilities?

How

much

autonomy

What

environmental

conditions

The Elements of Job Design


The chronology of the differente approaches to job design l.jpg

before 1900 Objectives

Division

of labour

1900

Scientific

management

Operations

job design

Ergonomics

Behavioural

approach

1950

Empowerment

Time

1980

1970

The Chronology of the Differente Approaches to Job Design


Differente approaches to job design l.jpg

Emphasis on Objectives

managerial control

Emphasis on

commitment and

engagement of staff

Staff treated

as a cost

Division of labour

Scientific

management

Ergonomics

Behavioural

approaches

Empowerment

Staff treated

as a resource

Self-managed method study

Differente Approaches to Job Design


Causes of seasonality l.jpg

Causes of seasonality Objectives

Climatic

Festive

Behavioural

Political

Financial

Social

Some seasonal products and services

  • Construction materials

  • Beverages (beer, cola)

  • Foods (ice-cream, Christmas cakes)

  • Clothing (swimwear, shoes)

  • Gardening items (seeds, fertilizer)

  • Fireworks

  • Travel service

  • Holidays

  • Tax processing

  • Doctors (influenza epidemic)

  • Sport services

  • Education services

Causes of Seasonality


Capacity planning and control l.jpg

Periode t-1 Objectives

Periode t

Periode t+1

Current

capacity

estimates

Current

capacity

estimates

Updated

forecasts

Updated

forecasts

Outcome

Decision

Outcome

Decision

Actual demand

and

actual capacity

How much

capacity

next period?

Actual demand

and

actual capacity

How much

capacity

next period?

Shortages

Queues

inventory

Shortages

Queues

inventory

Capacity

level

Capacity

level

Capacity

level

Costs

Revenues

Working capital

Customer satisfaction

etc.

Costs

Revenues

Working capital

Customer satisfaction

etc.

Capacity Planning and Control


Dynamics of capacity planning l.jpg

Short-term outlook Objectives

POOR

Outlook < 1

NORMAL

Outlook = 1

GOOD

Outlook > 1

POOR

Outlook < 1

Lay-off staff

Delay any action

Overtime

Hire temporary

staff

NORMAL

Outlook = 1

Short-time

Idle time

Do nothing

Overtime

Hire temporary

staff

Long-term outlook

GOOD

Outlook > 1

Make for inventory

Short time

Hire and make

for inventory

Start to recruit

Hire staff

Outlook = Forecast demand / Forecast capacity

Dynamics of Capacity Planning


The position of inventory i l.jpg

(a) single-stage inventory system Objectives

Sales

operations

Stock

e.g Local retail store

Suppliers

The Position of Inventory I


The position of inventory ii l.jpg

(b) Two-stage inventory system Objectives

Central

depot

Local dis-

tribution point

Sales

operations

Distribution

e.g. Automotive parts distributor

Suppliers

The Position of Inventory II


The position of inventory iii l.jpg

(c) Multi-stage inventory system Objectives

Input

stocks

Stage

1

Stage

2

WIP

Stage

3

Finished

goods stock

WIP

e.g. Television manufacturer

Suppliers

The Position of Inventory III


The position of inventory iv l.jpg

(d) Multi-echelon inventory system Objectives

Garment

producers

Cloth

producers

Regional

warehouses

Yarn

producers

Retail

stores

The Position of Inventory IV


Inventory profile l.jpg

Steady and Objectives

predictable

demand (D)

Order

quantity

Q

Slope = demand rate

Inventory

level

Average inventory = Q / 2

Time

Q / D

Instantaneous deliveries at rate of D / Q per period

Inventory Profile


Economic order quantity l.jpg

Total costs Objectives

Costs

Holding costs

Order costs

Economic order

quantity (EOQ)

Order quantity

Economic Order Quantity


Pareto curve for items in a warehouse l.jpg

Cumulative % of total value Objectives

Class A

items

Class B

items

Class C

items

% of total number of items

Pareto Curve for Items in a Warehouse


Supply chain management l.jpg

Second-tier Objectives

suppliers

First-tier

suppliers

First-tier

customers

Second-tier

customers

The

Operation

Supply side

Demand side

Purchasing and supply

management

Physical distribution

management

Logistics

Materials management

Supply chain management

Supply Chain Management


The purchasing function l.jpg

Suppliers Objectives

Purchasing function

The internal operation

Suppliers

Prepare quotations

Prepare

request for

quotations

Request

for products

and services

Select the

preferred

supplier

Discuss with

the operations

Quotations

Produce

goods/ services

Prepare

purchase order

Laise

with operations

Order

Delivery goods/ services

Receive

goods/ services

Inform purchasing

function

Input to the

operation

The Purchasing Function


The multi echelon physical system i l.jpg

Retail Objectives

stores

Garment

manufacturer

Regional

warehouses

Process

Inventory

The Multi-Echelon Physical System I


Multi echelon physical system ii l.jpg

6 contracts Objectives

Factory

Factory

Factory

18 routes

3 contracts

Customer

Customer

Customer

Customer

Customer

Customer

Multi-Echelon Physical System II


Multi echelon physical system iii l.jpg

Factory Objectives

Factory

Factory

3 contracts

Warehouse

Warehouse

12 routes

Customer

Customer

Customer

Customer

Customer

Customer

1 contracts

Multi-Echelon Physical System III


Responsibilities of supplier and purchaser l.jpg

Ex-works Objectives

Free alongside (FAS)

Free on board (FOB)

Purchaser

Supplier

Cost and freight (C & F)

Cost, insurance & freight (CIF)

Delivered

Purchaser‘s responsibility

Supplier‘s responsibility

Responsibilities of Supplier and Purchaser


Materials management l.jpg

Materials Management Objectives

Cash

out

Inventory

management

Inventory

management

Inventory

management

Inventory

management

Cash

in

Suppliers

Customers

Purchasing

Materials

processing

Sub-

assembly

Assembly

Physical

distribution

Raw

materials

inventory

In-

process

inventory

Finished

goods

inventory

Materials service flow

Information flow

Materials Management


Material requirement planning l.jpg

Customer orders Objectives

Master productions

schedule

Forecast demand

Materials

requirements

planning

Bills of materials

Inventory records

Purchase orders

Materials plans

Works orders

Material Requirement Planning


Inputs into the master production schedule l.jpg

Known orders Objectives

Forecast demand

Key capacity

constraints

Master

production

schedule

Sister plant demand

Inventory level

R&D demand

Spares demand

Exhibition/ promotion

requirements

Safety stock

requirements

Inputs into the Master Production Schedule


Different shapes of product structure l.jpg

A-shape Objectives

product structure

T-shape

product structure

V-shape

product structure

Hourglass or X-shape

product structure

Different Shapes of Product Structure


Closed loop mrp l.jpg

Materials Objectives

plan

Capacity

plan

Production

plan

Resource

requirements

plan

Realistic?

Master

production

plan

Rough-cut

capacity

plan

Realistic?

Materials

plan

Capacity

requirements

plan

Realistic?

Closed-Loop MRP


Traditional flow l.jpg

(a) Traditional approach – buffer separate stages Objectives

Buffer In-

ventory

Buffer In-

ventory

Stage A

Stage B

Stage C

Traditional Flow


Just in time jit flow l.jpg

(b) JIT approach – deliveries are made on request Objectives

Orders

Orders

Stage A

Stage B

Stage C

Deliveries

Deliveries

Just-in-time (JIT) Flow


A typology of projects l.jpg

Complexity Objectives

High

Multi-nation

Nation

Multiorganization

Uncertainty

Organization

Group

Individual

Low

Low

High

A Typology of Projects


The process of project planning l.jpg

Identify activities Objectives

Estimate times and resources

Identify relationships and dependencies

Optimize

Identify schedule constraints

Fix the schedule

The Process of Project Planning


Effect of higher quality on revenue and cost l.jpg

Quality up Objectives

Inventory

down

Processing

time down

Rework and

scrap costs

down

Service

cost down

Image

up

Inspection

and test

costs down

Complaint

and warranty

costs down

Sales

volume

up

Scales

economies

up

Productivity

up

Capital

cost

down

Price

competition

down

Revenue

up

Operation

costs down

Profits up

Effect of Higher Quality on Revenue and Cost


The customer s views of quality l.jpg

Customer‘s Objectives

expectations

concerning

a product or

service

Gap

Customer‘s

expectations

concerning

a product or

service

Customer‘s

perception‘s

concerning

the product or

service

Gap

Customer‘s

perception‘s

concerning

the product or

service

Expectation < perceptions

Perceived quality is good

Expectation > perceptions

Perceived quality is poor

Customer‘s

expectations

concerning

a product or

service

Gap

Customer‘s

perception‘s

concerning

the product or

service

Expectation = perceptions

Perceived quality is acceptable

The Customer‘s Views of Quality


Gap analysis between customers perception and expectation l.jpg

Previous Objectives

experiences

Word-of-mouth

communications

Image of

product or service

Gap 4

Customer‘s

expectations

concerning

a product or

service

Customer‘s

perception‘s

concerning

the product or

service

The

customer‘s

domain

Is there

a gap?

Customer‘s own

specification

of quality

The actual

product

or service

Gap 1

Management‘s

concept of the

product or service

Organization‘s

specification

of quality

The

operation‘s

domain

Gap 2

Gap 3

Gap Analysis Between Customers‘ Perception and Expectation


Change in customers needs and the operation s performance over time l.jpg

Cost Objectives

Cost

Dependability

Dependability

Speed

Speed

Time

Quality

Flexibility

Quality

Flexibility

Performance of the operation

Performance of the market

Change in Customers‘ Needs and the Operation‘s Performance over Time


The importance performance matrix l.jpg

Good Objectives

Excess

Better

than

Appropriate

Performance

against

competitors

Lower bound of acceptability

Same

as

Improve

Urgent action

Worse

than

Bad

Less

important

Order

winning

Qualifying

Importance

for

customer

Low

High

The Importance-Performance Matrix


Breakthrough improvement l.jpg

Intended „breakthrough“ improvements Objectives

Performance

Actual improvement pattern

Time

Breakthrough Improvement


The pdca cycle l.jpg

Plan Objectives

Act

Do

Performance

Check

Path of continous improvement

Time

The PDCA Cycle


The business process re engineering approach l.jpg

Micro operations Objectives

Function 1

Function 2

Function 3

Function 4

Customer needs

Business processes

Customer needs fulfilled

Activity 1

Activity 2

Activity 3

Activity 4

Customer needs

Micro operations

Business processes

Customer needs fulfilled

The Business Process Re-engineering Approach


Flow chart for customer query l.jpg

Customer phones Objectives

in with query

Telefonist

understands query

Manager

understands query

No

No

Put trough

to manager

Yes

Yes

Put trough to

relevant engineer

Answer query

over phone

No

Needs an

engineer visit

No

Yes

Arrange for

engineer to visit

Customer

satisfied

Yes

No

Engineer reports

back to manager

Important

Query/ customer

No

Yes

Request central

engineer support

Flow Chart for Customer Query


Cause effect diagram l.jpg

Frequency Objectives

Wrong

prediction

Unrecorded

modifications

Out of

stock

Other

reasons

Wrong

information

Wrong

issue

Wrong

equipment

Causes of unscheduled return

Cause-Effect Diagram


Pareto diagram l.jpg

Time (seconds) Objectives

Telefax services

Providing glasses for

night drinks

Providing ashtrays

Locking and unlocking

meeting rooms

Providing extra keys

Providing medication

Providing extra linen

Carrying phone messages

to meeting rooms

Providing night drinks

Marketing photocopies

Providing extra stationery

Services performed

Pareto Diagram


Why why analysis l.jpg

Not in budget Objectives

Lack of training

No time available

Why?

High turnover

Problem

Product spec. document-

ation complicated

Cause of

failure wrongly

predicted

Lack of product knowledge

Many new products

Why?

Why?

No analysis of failures

No knowledge of

system modifications

Lack of customer knowledge

No customer records

available to engineers

Why?

No analysis of failures

Why-Why Analysis


Failure prevention and recovery l.jpg

Failure detection Objectives

and analysis

Improving system

reliability

Recovery

Finding out what is going

wrong and why

Stopping things going

wrong

Coping when things

do go wrong

Failure Prevention and Recovery


View of maintenance costs i l.jpg

Total cost Objectives

Costs

Cost of

providing preventive

maintenance

Cost of

breakdowns

Optimum level of

preventive maintenance

Amount of preventive maintenance

View of Maintenance Costs I


View of maintenance costs ii l.jpg

Total cost Objectives

Costs

Cost of breakdowns

Cost of providing

preventive maintenance

Amount of preventive maintenance

View of Maintenance Costs II


Failure curves for two machines l.jpg

Machine A Objectives

Probability of failure

Machine B

x

y

Time

Failure Curves for Two Machines


The stages in failure planning l.jpg

Discover Objectives

The fact – What?

Possible consequences – Who?

Act

Inform – Tell

Contain – Stopp

Follow up - Check

Learn

Find – The root cause?

Prevention – Engineer out

Plan

Failure analysis – Possibilities

Recovery planning - Procedures

The Stages in Failure Planning


Total quality management l.jpg

Inspection

  • Quality systems

  • Quality costing

  • Problem solving

  • Quality planning

Quality control

  • Statistical methods

  • Process performance

  • Quality standards

Quality assurance

Total quality management

  • Error detection

  • Rectification

Total Quality Management


The cost of errors in different development stages l.jpg

Costs to rectify error Objectives

Concept

Design

Prototype

Pilot

production

Market

use

Stage in development and launch process

The Cost of Errors in Different Development Stages


The tqm quality cost model l.jpg

Total cost of quality Objectives

External failure

Internal failure

Costs of quality

Appraisal

Prevention

Time

The TQM Quality Cost Model


Group based improvement l.jpg

Quality Objectives

improvement

team

Quality

circle

Task

force

Improvement

task

selection

Established by

management

Group

Membership

of group

Assigned by

management

Voluntary

Management

direction

Little/ None

Total

Urgent of

improvement

task

Low

High

Group-based Improvement


The effectiveness of the tqm initiative l.jpg

Effectiveness of the TQM initiative Objectives

Time

Introduction

Growth

Leveling off

Disillusionment

Repackaging

Starting to hit

the more difficult

problems

Attempts to

revitalize the

programme

Learning and

understanding

Increasing

enthusiasm

Waning

enthusiasm

The Effectiveness of the TQM Initiative


The european quality award model l.jpg

Leadership Objectives

10 %

People management

9 %

Processes

14 %

People satisfaction

9 %

Business

results

15 %

Policy and strategy

8 %

Customer satisfaction

20 %

Resources

9 %

Impact on society

6 %

Enablers

50 %

Results

50 %

The European Quality Award Model


Sweeney s generic strategies l.jpg

Strategic change involves enhancing Objectives

The operation‘s structure

  • Marketer

  • Emphasizes

  • Quality

  • Dependability

  • Range

  • Innovator

  • Emphasizes

  • Quality

  • Product/service

  • Performance

  • Speed

  • New product/service

  • Development

Enhanced

Strategic change involves enhancing

the operation‘s infrastructure

Customer service criteria

  • Caretaker

  • Emphasizes

  • Price/ cost

  • Dependability

  • Quality

  • Innovator

  • Emphasizes

  • Quality

  • Product/service

  • Performance

  • Flexibility

  • Speed

Basic

Traditional

Enhanced

Sweeney‘s Generic Strategies


International operations network configurations l.jpg

2. Regional operations

3. Global co-ordinated operations

4. Combined regional and global

co-ordinated operations

International Operations Network Configurations


The performance objective trade off l.jpg

Performance Objectives

objective 2

Performance

objective 2

Performance

objective 1

Performance

objective 1

In the short term

one performance objective

can be traded off

with another

So one aspect of

performance can be

improved at the

expense of others

The Performance Objective Trade-Off


Common forecasting techniques l.jpg

Non-causal Objectives

techniques

Causal

techniques

  • Time series analysis

  • Moving-average smoothing

  • Exponential smoothing

Regression

Economic models

Objective

techniques

Intuition

Individual expert opinion

Group expert opinion

(e.g. Delphi forecasting)

Subjective

techniques

Common Forecasting Techniques


Trend seasonality and random variation analysis l.jpg

Demand Objectives

Time

Demand

Time

Demand

Time

Trend-, Seasonality and Random Variation Analysis


The standard time approach l.jpg

Relaxtion Objectives

Relaxtion

Relaxtion

One standard

minute or

hour of work

Working

Working

Working

Light

job

Medium

job

Heavy

job

The Standard Time Approach


Drawpack diagrams l.jpg
Drawpack Diagrams Objectives

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Usage rights l.jpg
Usage rights Objectives

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