MultiMedia by Stephen M. Peters© 2002 South-Western Operations Management.

MultiMedia by Stephen M. Peters © 2002 South-Western

Operations Management


Operations Strategy

Part of a strategic plan that defines:

– The role

– Capabilities

– Expectations of operations


Operational Problems for Producers of Goods and Services

Each is concerned with converting resources into something saleable.

Each must acquire materials or supplies to achieve that conversion.

Each must schedule the process of conversion.

Each must control processes and ensure quality.


Flow of Operations

•Raw Materials•Human Resources•Land, Buildings•Information•Technology

Inputs

Transformation Processes

Outputs

•Products•Services

Feedback to Provide Control


Role of Operations Strategy and Operations

Management

Operations Strategy

Operations Management

Products, Facilities, and Processes

Product or Service Design

Facilities Layout

Production Processes and Technology

Facilities Location

Capacity Planning

Productivity

Quality

Implementation Structures

Scheduling

Relationships

Decentralization

Teams

Productivity

Quality

Control Processes

Design Control

Purchasing Control

Inventory Control

Scheduling Control

Product Control

Productivity

Quality

Inputs Outputs


Operations Management Embraces

Facilities

Implementation structure Control

processes

Product

Process design


The Planning Stage of an Organization’s Operations

Involves decisions about:

– Product or service design

– Facilities layout

– Production processes and technology

– Facilities location

– Capacity planning

Involves decisions about:

– Product or service design

– Facilities layout

– Production processes and technology

– Facilities location

– Capacity planning


Two Design Concepts1. Design for manufacturability and assembly (DFM/A)

• Calls for design teams consisting of designers, manufacturers, and assemblers.

• all have a say in product design and actual production of the product.

• DFM/A product design involves four criteria: Producibility Cost Quality Reliability

2. Design for disassembly (DFD)

• The goal is to conceive, develop, and build a product with a long-term view of how its components can be refurbished and reused–or disposed of safely.


Major Benefits of the DFMA Approach, Against Which GM Evaluates New Designs

Quality

Durability

Mass

Safety

Manufacturability

Time to market

Total cost

Reliability

The total amount of materials, labor, transportation, design, and overhaul expenses associated with the design.

The time from product design until the car is ready for sale to the consumer.

The degree to which the car can be manufactured and assembled within existing operational capacity.

The degree to which the car increases the protection of occupants.

The total weight of the car.

The degree to which the car withstands performance demands.

The degree to which the car fulfills its intended purpose.

Excellence of the car, including serviceability.


Process LayoutEquipment or machines that perform a similar task or function are

located together.

A product is moved from process to process as needed.

Major advantage is potential for reducing costs.

Requires fewer people and pieces of equipment.

Limits the need to move the product through several different processes.


Four Options of Facilities Layout

(a) Process LayoutReceiving Dept.

Wiring

Molding

Insulation

Welding

Painting

Assembly

Testing

Storage

Product A Product B Product C


Product Layout

Machines and tasks are arranged according to the progressive steps by which the product is made.

Machines and tasks are arranged according to the progressive steps by which the product is made.

Efficient when the business produces large volumes of identical products.

Efficient when the business produces large volumes of identical products.



(b) Product Layout

Receiving Dept.

Molding

Assembly

Assembly

Wiring

Insulating Painting

Molding

Molding

Painting

TestingWelding

Receiving Dept.



Cellular Layout

Combines some of the characteristics of process and product layouts.

All the equipment required for a sequence of operations on the same product is placed together.

Allows efficient handling of materials and inventory.

Workers are physically close enough to work together to solve problems.



(c) Cellular Layout


Assembly

Painting Wiring

Welding

Molding

Testing


Fixed-Position Layout

Used because of size or

bulk. Tools, equipment, and human skill

are brought to the product.

The product remains in

one location.



(d) Fixed-Position Layout

ProductProductEquipment

Machines Supplies

Materials

Labor


Technologies Responsible for Revolutionizing Manufacturing Processes

RoboticsCAD/CAM

Soft manufacturin

g systems

Agile manufacturin

g

Computer- integrated

manufacturing

Flexible manufacturing

systems


Placement of FacilitiesTwo Questions

Should the firm have one or two large plants, or several smaller ones?

Where should the facilities be located?


Facility Location Depends on

Labor costs

Availability of labor

skills

Proximity to suppliers

Tax rates

The location of the market

where the product will

be soldConstruction

expenses

Quality of life for

employees

Utility rates


To Increase Capacity

Build new facilitiesCreate additional

shifts and hire new staff

Pay present staff overtime

Subcontract work to outside firms

Refit existing plants


Specific Plans for the Overall Production Activities Involve

Structuring for operations

Master scheduling

Aggregate planning


Development of a Master Schedule from an Aggregate Plan

1,000750

1,750

1,250800

2,050

1,200700

1,900

1,3001,0002,300

1,2001,0002,200

100100150

10050

150

50100150

100100150

100100100

100100

50

5050

100

50100100

1,000 1,300January Total February Total

3,6003,6653,670

1 2 4 53 6 7 8January February

Master Schedule for Electric Ranges (Units per Week)

Aggregate Plan (Units per Month)

January February March April MayElectric Ranges

Gas RangesTotal

Note: Another master schedule will be developed for the gas ranges.


Operational Controls

Control of

design

MaterialsMaterials

SchedulingScheduling ProductsProducts

InventoryInventory


Design Control

Focuses on creating new products engineered for reliability.

Functionality Serviceability


Purchasing is Critical for the Following Reasons

If the materials are not on hand, nothing can be

produced.

If the right quantity of materials is not available,

the organization cannot meet demand.

If the materials are of inferior quality, producing

quality products is difficult or costly.


Goals of Purchasing Control

Ensure availability of material

Ensure acceptable quality of material

Balance costs


Three Types of Inventory

InputsTransformation

ProcessesOutputs

Raw Materials Inventory

Work-in-Process

Inventory

Finished Goods

Inventory


Four Specific Techniques for Inventory Management

Materials requirement planning

Manufacturing resource planning

Just-in-time inventory systems

Economic order quantity

MultiMedia by Stephen M. Peters© 2002 South-Western Operations Management.

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Transcript of MultiMedia by Stephen M. Peters© 2002 South-Western Operations Management.