The Changing Business Environment
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© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin The Changing Business Environment Growth of the internet Just-in-Time production Total Quality Management International competition Business environment changes in the past twenty years
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The Changing Business Environment. Growth of the internet Just-in-Time production Total Quality Management International competition. Business environment changes in the past twenty years. New tools for managers!. The Changing Business Environment. Just-In-Time Total Quality Management - PowerPoint PPT Presentation
Transcript of The Changing Business Environment
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
The Changing Business Environment
Growth of the internet
Just-in-Time production
Total Quality Management
International competition
Growth of the internet
Just-in-Time production
Total Quality Management
International competition Business environment changes in the past
twenty years
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
The Changing Business Environment
Just-In-Time
Total Quality Management
Process Reengineering
Theory of Constraints
New tools for managers!
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
Complete productsjust in time to
ship customers.
Complete productsjust in time to
ship customers.
Complete partsjust in time for
assembly into products.
Complete partsjust in time for
assembly into products.
Scheduleproduction.
Scheduleproduction.
Receive materialsjust in time for
production.
Receive materialsjust in time for
production.
Receivecustomer
orders.
Receivecustomer
orders.
Just-in-Time (JIT) Systems
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
Flexibleworkforce
Flexibleworkforce
Reducedsetup time
Reducedsetup time
Zero productiondefects
Zero productiondefects
JIT Consequences
Improvedplant layout
Improvedplant layout
JIT purchasingFewer, but more ultrareliable suppliers.
Frequent JIT deliveries in small lots.Defect-free supplier deliveries.
JIT purchasingFewer, but more ultrareliable suppliers.
Frequent JIT deliveries in small lots.Defect-free supplier deliveries.
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
More rapidresponse to
customer orders
More rapidresponse to
customer orders
Freed-up fundsFreed-up fundsReducedinventory
costs
Reducedinventory
costs
Greatercustomer
satisfaction
Greatercustomer
satisfactionHigher qualityproducts
Benefits of a JIT System
Increased throughput
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
Do we need to change the plan?
Where are we?
Where do we want to go?
How do we start?
How are we doing?
Check
Plan
Act Dois
Total Quality Management
Benchmarking
ContinuousImprovement
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
Process Reengineering
The process isredesigned to include
only those steps that makeour product more valuable.
The process isredesigned to include
only those steps that makeour product more valuable.
Every step inthe businessprocess mustbe justified.
Every step inthe businessprocess mustbe justified.
A business processis diagrammed
in detail.
A business processis diagrammed
in detail.
Anticipated results:Anticipated results: Process is simplified. Process is completed
in less time. Costs are reduced. Opportunities for
errors are reduced.
Anticipated results:Anticipated results: Process is simplified. Process is completed
in less time. Costs are reduced. Opportunities for
errors are reduced.
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
A sequential process of identifying and removing constraints in a system.
Restrictions or barriers that impedeprogress toward an objective
Restrictions or barriers that impedeprogress toward an objective
Theory of Constraints
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
4. Coordinate processes
4. Coordinate processes
1. Measure process capacity
1. Measure process capacity
2. Identify process
constraints
2. Identify process
constraints
3. Use bottlenecks effectively.
3. Use bottlenecks effectively.
Only actions that strengthen the weakest link in the “chain” improve the process.
Theory of Constraints
© The McGraw-Hill Companies, Inc., 2003McGraw-Hill/Irwin
Theory of Constraints
Process Capacity
Process Capacity
A measure of a process’s ability
to transform resources into value products and services.
A measure of a process’s ability
to transform resources into value products and services.
System Constraint
System Constraint
The point in a system that
limits the overall output of the
system. Often called the
“bottleneck.”
The point in a system that
limits the overall output of the
system. Often called the
“bottleneck.”
