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Candid Comparison of Operational Management Approaches. James R. Holt, Ph.D., PE, Jonah-Jonah Washington State University-Vancouver Engineering Management Program. Purpose for Presentation. Understand different approaches to managing repetitive production processes

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candid comparison of operational management approaches

Candid Comparison of Operational Management Approaches

James R. Holt, Ph.D., PE, Jonah-Jonah

Washington State University-Vancouver

Engineering Management Program

purpose for presentation
Purpose for Presentation
  • Understand different approaches to managing repetitive production processes
  • Highlighting several key production measurements
  • Comparing performance on an equal playing field
  • Highlight consistent key variables
  • Draw some conclusions of value
the situation
The Situation
  • Describe many different production management approaches into generally acceptable methods
  • Create a generic simulation model and test procedure that is fair to all management approaches
  • Provide sensitivity analysis to make fair comparisons
fairness paramount
Fairness Paramount
  • Production process straight forward
    • No disassembly, no assembly,
    • Parallel machines accept any work
    • No set-ups
  • No people or logistics problems
    • No priority work
    • Independent - No artificial slow downs
    • Available material available immediately
    • Tolerant customer that buys all immediately
the challenge
The Challenge
  • Production Model
    • 10 machines of 6 types -- mostly in parallel
    • Production times mostly balanced
    • Double Constraint
    • Free flow of products on any path
    • Normal distribution on production
    • 90% productive capacity
    • Repetitive scheduled arrivals
management approaches
Management Approaches
  • Traditional push manufacturing
  • Push with batch size of 10
  • Work cells
  • Just-In-Time with kanban of 1
  • Just-In-Time with kanban of 3
  • Lean manufacturing
  • Drum-buffer-rope
  • Agile manufacturing
measurements based on 20 trials of 100 hrs
MeasurementsBased on 20 Trials of 100 hrs
  • Average work-in-process (alpha=0.02)
  • Average flow time (in process only)
  • Average efficiency of all machines
  • Average produced in 100 hours
  • Profit based on $80 per part and $30,000 operating expense per 100 hours
  • ROI based on annualized investment ($50,000 per 100 hours) plus inventory
definition traditional
Definition:Traditional
  • Efficiency is very important at every work station
  • Push materials in as soon as possible
  • No limit on Work-In-Process (queues)
  • Work flows first-in-first-out
  • No priorities
  • Transfer batch size of one

View: Trad.sim

definition traditional batch
Definition:Traditional Batch
  • Optimizes the costs of efficiency and investment
  • Lot sizes planned to optimize individual performance
  • Lot sizes reduce set-up times
  • Efficiencies of scale
  • Parts moved between machines in lots of 10
definition cell production
Definition:Cell Production
  • Dedicate machines to products
  • Special treatment of products
  • Some efficiencies possible within cells
  • Easier to manage / control / improve processes in cells
  • Cell draws from, connects to rest of plant

View: Cell.sim

definition just in time
Definition:Just-In-Time
  • Pull system -- produces to demand
  • Work-In-Process controlled (limited)
  • Kanban card governs flow between machines (parts move only on demand)
  • Simulation JIT1: Kanban card of 1
  • Simulation JIT3: Kanban card of 3
  • Demand is at max level of performance

View: JIT1.sim

definition lean manufacturing
Definition:Lean Manufacturing
  • Maintain low work-in-process
  • Maintain high efficiencies (trim excess capacity)
  • Use push or pull approach
  • This simulation uses a balanced line with maximum work-in-process of 5 parts per machine

View: Lean.sim

definition drum buffer rope
Definition:Drum-Buffer-Rope
  • Drum process is slowest machine(s)
  • Buffer protects capacity of drum -- holds adequate work-in-process to keep drum at maximum efficiency
  • Rope restricts excess work from entering system -- limits maximum work-in-process in front of the constraint
  • Buffer size limited to 17 parts

View: Dbr.sim

definition agile production
Definition:Agile Production
  • Very flexible manufacturing
  • Respond to demand, workload shifts as needed
  • Multi-skill machines / workers to perform a variety of tasks
  • Machines added / workers added / moved to meet high demands
  • In this simulation, workers move if own queue is < 2 and service area average >2

View: Agile.sim

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