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In this chapter, the following content will be discussed: Four process strategies, process focus, repetitive focus, product focus, mass customization focus, comparison of process choices, process analysis and design, flow diagrams, time-function mapping, value-stream mapping, process charts, service blueprinting.
LECTURE 10 LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF Summary of Last Session ỵ Tools of TQM ỵ ỵ þ þ þ þ þ Check Sheets Scatter Diagrams Cause-and-Effect Diagrams Pareto Charts Flowcharts Histograms Statistical Process Control (SPC) Summary of Last Session (Contd.) ỵ The Role of Inspection þ þ þ þ þ When and Where to Inspect Source Inspection Service Industry Inspection Inspection of Attributes versus Variables TQM in Services Summary of Last Session (Contd.) ỵ Tools for Generating Ideas Check sheets ỵ Scatter diagrams ỵ Cause-and-effect diagrams ỵ ỵ Tools to Organize the Data Pareto charts ỵ Flowcharts ỵ ỵ Tools for Identifying Problems Histogram þ Statistical process control chart þ Agenda for this session ỵ Four Process Strategies ỵ Process Focus ỵ Repetitive Focus ỵ Product Focus ỵ Mass Customization Focus Comparison of Process Choices Process Analysis and Design ỵ Flow Diagrams ỵ Time-Function Mapping ỵ Value-Stream Mapping ỵ Process Charts ỵ Service Blueprinting ỵ ỵ Agenda for this session (Contd.) ỵ þ þ Service Process Design þ Customer Interaction and Process Design ỵ More Opportunities to Improve Service Processes Selection of Equipment and Technology Production Technology ỵ Machine Technology ỵ Automatic Identification Systems (AISs) and RFID ỵ Process Control ỵ Vision Systems ỵ Robots Agenda for this session (Contd.) ỵ þ þ þ Production Technology (cont.) þ Automated Storage and Retrieval Systems (ASRSs) ỵ Automated Guided Vehicles (AGVs) ỵ Flexible Manufacturing Systems (FMSs) ỵ Computer-Integrated Manufacturing (CIM) Technology in Services Process Redesign Ethics and Environmentally Friendly Processes Comparison of Processes Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Small quantity, large variety of products Long runs, standardized product made from modules Large quantity, small variety of products Large quantity, large variety of products General purpose equipment Special equipment aids in use of assembly line Special purpose equipment Rapid changeover on flexible equipment Table 7.2 Comparison of Processes Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Operators are broadly skilled Employees are modestly trained Operators are less broadly skilled Flexible operators are trained for the necessary customization Many job instructions as each job changes Repetition reduces training and changes in job instructions Few work orders and job instructions because jobs standardized Custom orders require many job instructions Table 7.2 Comparison of Processes Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Raw material inventories high JIT procurement techniques used Raw material inventories are low Raw material inventories are low Work-inprocess is high JIT inventory techniques used Work-inprocess inventory is low Work-inprocess inventory driven down by JIT, lean production 10 Table 7.2 Vision Systems ỵ ỵ ỵ ỵ ỵ Particular aid to inspection Consistently accurate Never bored Modest cost Superior to individuals performing the same tasks 37 Robots ỵ ỵ ỵ Perform monotonous or dangerous tasks Perform tasks requiring significant strength or endurance Generally enhanced consistency and accuracy 38 Automated Storage and Retrieval Systems (ASRSs) ỵ ỵ ỵ Automated placement and withdrawal of parts and products Reduced errors and labor Particularly useful in inventory and test areas of manufacturing firms 39 Automated Guided Vehicle (AGVs) ỵ ỵ Electronically guided and controlled carts Used for movement of products and/or individuals 40 Flexible Manufacturing Systems (FMSs) ỵ ỵ ỵ ỵ ỵ Computer controls both the workstation and the material handling equipment Enhance flexibility and reduced waste Can economically produce low volume at high quality Reduced changeover time and increased utilization Stringent communication requirement between components 41 Computer-Integrated Manufacturing (CIM) ỵ Extension of flexible manufacturing systems þ þ þ þ Backwards to engineering and inventory control Forward into warehousing and shipping Can also include financial and customer service areas Reducing the distinction between lowvolume/high-variety, and highvolume/low-variety production 42 ComputerIntegrated Manufacturing (CIM) Figure 7.12 43 Technology in Services Service Industry Example Financial Services Debit cards, electronic funds transfer, ATMs, Internet stock trading Education Electronic bulletin boards, on-line journals, WebCT and Blackboard Utilities and government Automated one-man garbage trucks, optical mail and bomb scanners, flood warning systems Restaurants and foods Wireless orders from waiters to kitchen, robot butchering, transponders on cars that track sales at drive-throughs Communications Electronic publishing, interactive TV 44 Table 7.4 Technology in Services Service Industry Example Hotels Electronic check-in/check-out, electronic key/lock system Wholesale/retail trade ATM-like kiosks, point-of-sale (POS) terminals, e-commerce, electronic communication between store and supplier, bar coded data Transportation Automatic toll booths, satellite-directed navigation systems Health care Online patient-monitoring, online medical information systems, robotic surgery Airlines Ticketless travel, scheduling, Internet purchases 45 Table 7.4 Process Redesign ỵ ỵ ỵ ỵ ỵ The fundamental rethinking of business processes to bring about dramatic improvements in performance Relies on reevaluating the purpose of the process and questioning both the purpose and the underlying assumptions Requires reexamination of the basic process and its objectives Focuses on activities that cross functional lines Any process is a candidate for redesign 46 Ethics and Environmentally Friendly Processes Reduce the negative impact on the environment ỵ ỵ ỵ ỵ ỵ Encourage recycling Efficient use of resources Reduction of waste by-products Use less harmful ingredients Use less energy 47 Summary of this session ỵ Four Process Strategies ỵ Process Focus ỵ Repetitive Focus ỵ Product Focus ỵ Mass Customization Focus Comparison of Process Choices Process Analysis and Design ỵ Flow Diagrams ỵ Time-Function Mapping ỵ Value-Stream Mapping ỵ Process Charts ỵ Service Blueprinting ỵ ỵ 48 Summary of this session (Contd.) ỵ þ þ Service Process Design þ Customer Interaction and Process Design ỵ More Opportunities to Improve Service Processes Selection of Equipment and Technology Production Technology ỵ Machine Technology ỵ Automatic Identification Systems (AISs) and RFID ỵ Process Control ỵ Vision Systems ỵ Robots 49 Summary of this session (Contd.) ỵ þ þ þ Production Technology (cont.) þ Automated Storage and Retrieval Systems (ASRSs) ỵ Automated Guided Vehicles (AGVs) ỵ Flexible Manufacturing Systems (FMSs) ỵ Computer-Integrated Manufacturing (CIM) Technology in Services Process Redesign Ethics and Environmentally Friendly Processes 50 THANK YOU 51 ... inventories are low Work-inprocess is high JIT inventory techniques used Work-inprocess inventory is low Work-inprocess inventory driven down by JIT, lean production 10 Table 7.2 Comparison of... build-to-order (BTO) 11 Table 7.2 Comparison of Processes Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume,... Analysis and Design ỵ ỵ ỵ ỵ ỵ Flow Diagrams - Shows the movement of materials Time-Function Mapping - Shows flows and time frame Value-Stream Mapping - Shows flows and time and value added beyond