Ø To use the concept and applications of Design, Forecasting, Capacity Planning, Location Decision, Inventory, Operations Scheduling, JIT system and Project Management (PERT-CPM) in the actual production process. Management Ø To evaluate the importance TQM in the production industry. Ø To integrate the basic concepts of TQM platform, using the philosophies of Deming, Juran, and Crosby into operations management. Ø Apply problem identification and Topic 3 : Competitiveness, Strategy and problem-solving processes. Ø Design and develop a process on Productivity identified areas with opportunities for improvement including steps to maintain and manage the process. Ø Design and develop a process on identified areas with opportunities for improvement including steps to maintain and manage the process.
Competitiveness: How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services Organizations compete through some combination of their marketing and operations functions • What do customers want? • How can these customer needs be best satisfied? 1. Product and service design 2. Cost 3. Location 4. Quality 5. Quick response 6. Flexibility 7. Inventory management 8. Supply chain management 9. Service 10. Managers and workers Operations strategy The approach, consistent with organization strategy, that is used to guide the operations function. Decision Area What the Decisions Affect Product and service design Costs, quality, liability, and environmental issues Capacity Cost, structure, flexibility Process selection and Costs, flexibility, skill level needed, capacity layout Work design Quality of work life, employee safety, productivity Location Costs, visibility Quality Ability to meet or exceed customer expectations Inventory Costs, shortages Maintenance Costs, equipment reliability, productivity Scheduling Flexibility, efficiency Supply chains Costs, quality, agility, shortages, vendor relations Projects Costs, new products, services, or operating systems 1. Cost 2. Quality 3. Response time 4. Customer service ! Low Production Costs ! Definition Unit cost (labor, material, and overhead) of each product/service ! Some Ways of Creating ! Redesign of product/service ! New technology ! Increase in production rates ! Reduction of scrap/waste ! Reduction of inventory ! High-Quality Products/Services ! Definition Customers’ perception of degree of excellence exhibited by products/services ! Some Ways of Creating Improve product/service’s ! Appearance ! Performance and function ! Wear, endurance ability ! After-sales service ! Delivery Performance ! Definition a) Fast delivery b) On-time delivery ! Some Ways of Creating a) larger finished-goods inventory a) faster production rates a) quicker shipping methods b) more-realistic promises b) better control of production of orders b) better information systems ! Customer Service and Flexibility ! Definition Ability to quickly change production to other products/services. Customer responsiveness. ! Some Ways of Creating ! Change in type of processes used ! Use of advanced technologies ! Reduction in WIP through lean manufacturing ! Increase in capacity Productivity A measure of the effective use of resources, usually expressed as the ratio of output to input Productivity measures are useful for Tracking an operating unit’s performance over time Judging the performance of an entire industry or country Process & Product Design Methods
Total Measure All inputs used to produce them 1. Develop productivity measures for all operations 2. Determine critical (bottleneck) operations 3. Develop methods for productivity improvements 4. Establish reasonable goals 5. Make it clear that management supports and encourages productivity improvement 6. Measure and publicize improvements Don’t confuse productivity with efficiency
