LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 9 1.
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Transcript of LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 9 1.
1
LSM733-PRODUCTION OPERATIONS MANAGEMENT
By: OSMAN BIN SAIF
LECTURE 9
2
Global Company Profile: Arnold Palmer Hospital
Quality and Strategy Defining Quality
Implications of QualityMalcolm Baldrige National Quality
AwardCost of Quality (COQ)Ethics and Quality Management
Summary of last session
3
International Quality Standards ISO 9000 ISO14000
Summary of last session (Contd.)
4
Total Quality ManagementContinuous ImprovementSix SigmaEmployee EmpowermentBenchmarkingJust-in-Time (JIT)Taguchi ConceptsKnowledge of TQM Tools
Summary of last session (Contd.)
5
Tools of TQMCheck SheetsScatter Diagrams Cause-and-Effect DiagramsPareto ChartsFlowchartsHistogramsStatistical Process Control (SPC)
Agenda for this session
6
The Role of InspectionWhen and Where to InspectSource InspectionService Industry Inspection Inspection of Attributes versus
Variables
TQM in Services
Agenda for this session (Contd.)
7
Tools for Generating IdeasCheck sheetsScatter diagramsCause-and-effect diagrams
Tools to Organize the DataPareto chartsFlowcharts
Tools for Identifying ProblemsHistogramStatistical process control chart
Agenda for this session (Contd.)
8
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/ / /// /// ///// ////
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HourDefect 1 2 3 4 5 6 7 8
ABC
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/
Seven Tools of TQM(a) Check Sheet: An organized method of recording data
Figure 6.6
9
Seven Tools of TQM(b) Scatter Diagram: A graph of the value of one variable
vs. another variable
Absenteeism
Pro
duct
ivity
Figure 6.6
10
Seven Tools of TQM(c) Cause-and-Effect Diagram: A tool that identifies process
elements (causes) that might effect an outcome
Figure 6.6
Cause
Materials Methods
Manpower Machinery
Effect
11
Seven Tools of TQM(d) Pareto Chart: A graph to identify and plot problems or defects
in descending order of frequency
Figure 6.6
Fre
que
ncy
Pe
rce
nt
A B C D E
12
Seven Tools of TQM(e) Flowchart (Process Diagram): A chart that describes the steps
in a process
Figure 6.6
13
Seven Tools of TQM(f) Histogram: A distribution showing the frequency of occurrences
of a variable
Figure 6.6
Distribution
Repair time (minutes)
Fre
que
ncy
14
Seven Tools of TQM(g) Statistical Process Control Chart: A chart with time on the
horizontal axis to plot values of a statistic
Figure 6.6
Upper control limit
Target value
Lower control limit
Time
15
Cause-and-Effect DiagramsMaterial
(ball)Method
(shooting process)
Machine(hoop &
backboard)
Manpower(shooter)
Missed free-throws
Figure 6.7
Rim alignment
Rim size
Backboard stability
Rim height
Follow-through
Hand position
Aiming point
Bend knees
Balance
Size of ball
Lopsidedness
Grain/Feel (grip)
Air pressure
Training
Conditioning Motivation
Concentration
Consistency
16
Pareto Charts
Number of occurrences
Room svc Check-in Pool hours Minibar Misc.72% 16% 5% 4% 3%
12
4 3 2
54
– 100– 93– 88
– 72
70 –
60 –
50 –
40 –
30 –
20 –
10 –
0 –
Fre
quen
cy (
num
ber)
Causes and percent of the total
Cum
ulat
ive
perc
ent
Data for October
17
Flow Charts
MRI Flowchart1. Physician schedules MRI2. Patient taken to MRI3. Patient signs in4. Patient is prepped5. Technician carries out MRI6. Technician inspects film
7. If unsatisfactory, repeat8. Patient taken back to room9. MRI read by radiologist10. MRI report transferred to
physician11. Patient and physician discuss
11
10
20%
9
880%
1 2 3 4 5 6 7
18
Statistical Process Control (SPC)
Uses statistics and control charts to tell when to take corrective action
Drives process improvement Four key steps
Measure the process When a change is indicated, find the assignable cause Eliminate or incorporate the cause Restart the revised process
19
An SPC Chart
Upper control limit
Coach’s target value
Lower control limit
Game number
| | | | | | | | |
1 2 3 4 5 6 7 8 9
20%
10%
0%
Plots the percent of free throws missed
Figure 6.8
20
Inspection Involves examining items to see if an
item is good or defective Detect a defective product
Does not correct deficiencies in process or product
It is expensive Issues
When to inspectWhere in process to inspect
21
When and Where to Inspect
1. At the supplier’s plant while the supplier is producing
2. At your facility upon receipt of goods from the supplier
3. Before costly or irreversible processes4. During the step-by-step production process5. When production or service is complete6. Before delivery to your customer7. At the point of customer contact
22
Inspection Many problems
Worker fatigueMeasurement errorProcess variability
Cannot inspect quality into a product Robust design, empowered
employees, and sound processes are better solutions
23
Source Inspection
Also known as source control The next step in the process is
your customer Ensure perfect product
to your customer
Poka-yoke is the concept of foolproof devices or techniques designed to pass only acceptable product
24
Service Industry Inspection
Organization What is Inspected Standard
Jones Law Office Receptionist performance
Billing
Attorney
Is phone answered by the second ring
Accurate, timely, and correct format
Promptness in returning calls
Table 6.5
25
Service Industry Inspection
Organization What is Inspected Standard
Hard Rock Hotel Reception desk
Doorman
Room
Minibar
Use customer’s name
Greet guest in less than 30 seconds
All lights working, spotless bathroom
Restocked and charges accurately posted to bill
Table 6.5
26
Service Industry Inspection
Organization What is Inspected Standard
Arnold Palmer Hospital
Billing
Pharmacy
Lab
Nurses
Admissions
Accurate, timely, and correct format
Prescription accuracy, inventory accuracy
Audit for lab-test accuracy
Charts immediately updated
Data entered correctly and completely
Table 6.5
27
Service Industry Inspection
Organization What is Inspected Standard
Olive Garden Restaurant
Busboy
Busboy
Waiter
Serves water and bread within 1 minute
Clears all entrée items and crumbs prior to dessert
Knows and suggest specials, desserts
Table 6.5
28
Service Industry Inspection
Organization What is Inspected Standard
Nordstrom Department Store
Display areas
Stockrooms
Salesclerks
Attractive, well-organized, stocked, good lighting
Rotation of goods, organized, clean
Neat, courteous, very knowledgeable
Table 6.5
29
Attributes Versus Variables
Attributes Items are either good or bad, acceptable or
unacceptable Does not address degree of failure
Variables Measures dimensions such as weight, speed,
height, or strength Falls within an acceptable range
Use different statistical techniques
30
TQM In Services
Service quality is more difficult to measure than the quality of goods
Service quality perceptions depend on Intangible differences between products Intangible expectations customers have
of those products
31
Service Quality
The Operations Manager must recognize:
1. The tangible component of services is important
2. The service process is important
3. The service is judged against the customer’s expectations
4. Exceptions will occur
32
ServiceSpecifications
at UPS
33
Determinants of Service Quality
Reliability Responsiveness Competence Access Courtesy Communication
Credibility Security Understanding/
knowing the customer
Tangibles
34
Service Recovery Strategy
Managers should have a plan for when services fail
Marriott’s LEARN routine Listen Empathize Apologize React Notify
35
36
Dell Computer CompanyMass customization provides a competitive
advantage
Sell custom-built PCs directly to consumer Lean production processes and good product
design allow responsiveness Integrate the Web into every aspect of its business Focus research on software designed to make
installation and configuration of its PCs fast and simple
37
Process, Volume, and Variety
Process Focusprojects, job shops
(machine, print, carpentry)
Standard Register
Repetitive(autos, motorcycles)
Harley-Davidson
Product Focus(commercial baked goods, steel, glass)
Nucor Steel
High Varietyone or few units per run, high variety(allows customization)
Changes in Modulesmodest runs, standardized modules
Changes in Attributes (such as grade, quality, size, thickness, etc.) long runs only
Mass Customization(difficult to achieve, but
huge rewards)Dell Computer
Poor Strategy (Both fixed and variable
costs are high)
Low Volume
Repetitive Process
High Volume
VolumeFigure 7.1
38
Process Strategies
How to produce a product or provide a service that Meets or exceeds customer requirements Meets cost and managerial goals
Has long term effects on Efficiency and production flexibility Costs and quality
39
Process Strategies
Four basic strategies
Process focus Repetitive focus Product focus Mass customization
Within these basic strategies there are many ways they may be implemented
40
Process Focus Facilities are organized around specific activities
or processes General purpose equipment and skilled
personnel High degree of product flexibility Typically high costs and low equipment
utilization Product flows may vary considerably making
planning and scheduling a challenge
41
Process Focus
Many inputs
Many variety of outputs
Job Shop
Man
y de
part
men
ts a
nd
man
y ro
uting
s
42
Accounting
Process Flow Diagram
Information flowMaterial flow
Figure 7.2
COLLATING DEPT GLUING, BINDING, STAPLING, LABELING
POLYWRAP DEPT
SHIPPING
Customer
PRINTING DEPT
PREPRESS DEPTVendors
Receiving
Warehouse
Purchasing
Customer
Customer sales representative
43
Repetitive Focus
Facilities often organized as assembly lines Characterized by modules with parts and
assemblies made previously Modules may be combined for many
output options Less flexibility than process-focused
facilities but more efficient
44
Repetitive Focus
Raw materials
and module inputs
Modules combined for many output options
Few modules
Automobile Assembly Line
45
Process Flow Diagram
THE ASSEMBLY LINETESTING28 tests
Oil tank work cell
Shocks and forks
Handlebars
Fender work cell
Air cleaners
Fluids and mufflers
Fuel tank work cell
Wheel work cell
Roller testing
Incoming parts
From Milwaukee on a JIT arrival schedule
Engines and transmissions
Frame tube bending
Frame-building work cells
Frame machining
Hot-paint frame painting
Crating
Figure 7.3
46
Product Focus
Facilities are organized by product High volume but low variety of products Long, continuous production runs enable
efficient processes Typically high fixed cost but low variable
cost Generally less skilled labor
47
Product Focus
Few inputs
Output variations in size, shape,
and packaging
Continuous Work Flow
48
Product FocusNucor Steel Plant
Conti
nuou
s ca
ster
Continuous cast steel sheared into 24-ton slabs
Hot tunnel furnace - 300 ft
Hot mill for finishing, cooling, and coiling
D
E F
GHI
Scrap steel
Ladle of molten steelElectric furnace
A
BC
49
Mass Customization
The rapid, low-cost production of goods and service to satisfy increasingly unique customer desires
Combines the flexibility of a process focus with the efficiency of a product focus
50
Mass Customization
Vehicle models 140 286Vehicle types 18 1,212Bicycle types 8 19Software titles 0 400,000Web sites 0 98,116,993Movie releases267 458New book titles40,530 77,446Houston TV channels 5 185Breakfast cereals160 340Items (SKUs) in 14,000 150,000 supermarketsLCD TVs 0 102
Number of ChoicesItem 1970s 21st Century
Table 7.1
51
Mass Customization
Mass Customization
Effective scheduling techniques
Rapid throughput techniques
Repetitive FocusFlexible peopleand equipment
Process-FocusedHigh variety, low volume
Low utilization (5% to 25%)General-purpose equipment
Product-FocusedLow variety, high volume
High utilization (70% to 90%)Specialized equipment
Figure 7.5
Modular techniquesSupportive
supply chains
52
Tools of TQMCheck SheetsScatter Diagrams Cause-and-Effect DiagramsPareto ChartsFlowchartsHistogramsStatistical Process Control (SPC)
Summary of this Session
53
The Role of InspectionWhen and Where to InspectSource InspectionService Industry Inspection Inspection of Attributes versus
Variables
TQM in Services
Summary of this Session (Contd.)
54
Tools for Generating IdeasCheck sheetsScatter diagramsCause-and-effect diagrams
Tools to Organize the DataPareto chartsFlowcharts
Tools for Identifying ProblemsHistogramStatistical process control chart
Summary of this Session (Contd.)
55
THANK YOU