Slides 2015 for contact 3
- 1. Operations Management PBSB 813 Contact 3 Johan Jordaan jordaan.johan@nwu.ac.za
- 2. Note on the use of these slides • These slides provide the basic theory that I would like you to know. There are many more techniques on the slides that came with the textbook, which are also available on eFundi. As I talk you through this slide show, please stop where you don't understand, go to either the textbook (Heizer and Render) or the Heizer & Render slides and make sure you understand them. If you still do not understand, on the first page that you have to submit is space for you to tell me what you do not understand so that I can cover it in class. • Once you have gone through the slides, go to the template on eFundi and prepare your submissions for the next contact session.
- 3. Operations & productivity (1) Topics covered: Contact 3 Global envi- ronment & strategy (2) Managing projects (3) Forecasting demand (4) Product design (5) Quality management (6) Process design (7) Location decisions (8) Layout decisions(9) Job design & work mea- surement (10) Supply chain management (11) Inventory management (12) Scheduling (13 & 15) MRP & ERP (14) JIT & Lean operations (16) Maintenance & reliability (17) Study school Contact 1 Contact 2 Contact 3 Contact 4 Contact 5 Contact 6 Contact 7
- 4. Outcomes for today's contact OUTCOMES OF THEME G Interpret the product-process matrix using real-life companies Master the theory of the service-process matrix and interpret the matrix using real-life organisations. Use process analysis techniques to critically analyse existing real-life manufacturing and service processes Demonstrate a thorough understanding of the concepts by applying the theory to a real-life organisation. OUTCOMES OF THEME H Understand the basic layout configurations Demonstrate a thorough understanding of the concepts by applying the theory to a real-life organisation.
- 5. Chapter 7 Theory Process strategy
- 6. Basic work flow structures • Project layout • Workcenter • Manufacturing cell • Assembly Line • Continuous process
- 7. Product-Process Matrix Source: Chase & Jacobs 2013 Manufacturing cell Batch process Assembly line Continuous process
- 8. Process, Volume, and Variety Process Focus projects, job shops (machine, print, carpentry) Standard Register Repetitive (autos, motorcycles) Harley-Davidson Product Focus (commercial baked goods, steel, glass) Nucor Steel High Variety one or few units per run, high variety (allows customization) Changes in Modules modest 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
- 9. p258 Source: Chase & Jacobs
- 10. Service Factory Service Shop Degree of Customization Low High DegreeofLabor Low High Mass Service Professional Service Service Process Matrix Commercial banking Private banking General- purpose law firms Law clinics Specialized hospitals Hospitals Full-service stockbroker Limited-service stockbroker Retailing Boutiques Warehouse and catalog stores Fast-food restaurants Fine-dining restaurants Airlines No-frills airlinesFigure 7.11
- 11. Process flowcharting Defined • Process flow diagrams is the use of a diagram to represent the main elements of a process • The basic elements can include operations, material or customer flow, decision points, storage areas and queues • A flow diagram is an ideal method to start process analysis
- 12. Goldratt’s Goal of the Firm The goal of a firm is to make money
- 13. Performance Measurement: Operational 1. Throughput the rate at which money is generated by the system through sales 2. Inventory all the money that the system has invested in purchasing things it intends to sell 3. Operating expenses all the money that the system spends to turn inventory into throughput
- 14. Goldratt’s Theory of Constraints (TOC) • Identify the system constraints • Decide how to exploit the system constraints • Subordinate everything else to that decision • Elevate the system constraints • If, in the previous steps, the constraints have been broken, go back to Step 1, but do not let inertia become the system constraint
- 15. Other Proses Terminology • Blocking • Occurs when the activities in a stage must stop because there is no place to deposit the item just completed • If there is no room for an employee to place a unit of work down, the employee will hold on to it not able to continue working on the next unit • Starving • Occurs when the activities in a stage must stop because there is no work • If an employee is waiting at a work station and no work is coming to the employee to proses, the employee will remain idle until the next unit of work comes
- 17. Innovations at McDonald’s Indoor seating (1950s) Drive-through window (1970s) Adding breakfast to the menu (1980s) Adding play areas (late 1980s) Redesign of the kitchens (1990s) Self-service kiosk (2004) Now three separate dining sections Six out of the seven are layout decisions!
- 18. Types of Layout 1. Office layout 2. Retail layout 3. Warehouse layout 4. Fixed-position layout 5. Process-oriented layout 6. Work-cell layout 7. Product-oriented layout
- 19. Your assignment • Step 1: Make sure you understand the concepts that are covered in this slide show. If necessary, go through it again or study the textbook. The slides by Heizer & Render (available on eFundi) also give valuable extra information. • Step 2: Prepare a one-page summary of the theory. Make sure it fits into the template in the study guide. Remember to make a note of those issues that you want explained in class. • Step 3: Find out how processes are managed in your organisation. Give a one-page summary on the template. • Step 4: Critique the way processes are designed and managed in your organisation. Where necessary, suggest improvements. Give a one-page summary on the template. (If there are diagrams, you are allowed a fourth page for them). • Step 5: Submit your three-page report on efundi before Thursday night 23:59. This counts towards your individual assignment and your final pass mark! • Step 6: For your group assignment, prepare a three-slide PowerPoint show: Slide 1: Briefly present the essence of processes and layout to your community organisation. Slide 2: Explain the processes and flow in their business venture. Slide 3: Give them advice on how to improve their processes. Use the template that is on eFundi. One group member must submit on efundi before Thursday night 23:59 as well! • Names of both documents must be as indicated in your study guide.