Process: •Products follow sequence •Operations often run 24/7, continuous •Line stoppages are very costly •Highly specialized equipment •Low-skilled operators
8
New cards
Product-Process Matrix
-Project
Flow Shop: -Job Shop -Batch -Repetitive
-Continuous
9
New cards
Project:
custom, smaller tasks, may be unique to the project, may differ from project to project
-high-skilled labor
10
New cards
Job Shop
Customization, but standard processes are used, standard equipment and tasks
-Many different routings to the processes and equipment - each job may be different -Hair salon -Surgery -High-skilled labor
11
New cards
Batch
-Goods/Service flow in batches from task to task -Bakery -Some customer work -Higher volume
12
New cards
Repetitive
-High volume -Consistent tasks, similar sequencing -Hospital lab, computer assembly
13
New cards
Flow Shop
Another way to define: Job shop, batching, and repetitive flow
14
New cards
Continuous
-Standard process, rigid, little flexibility, no customization -Highly automated -Minimal human intervention required
Example: -Dell personal computers -Jostens Class Rings
Process: •Continuous or repetitive processes •Components standardized •High inventory levels for components •Process flexibility on assembly •Customization options specified •Flexible manuf systems to quick change between products
16
New cards
Engineer to order
•unique, customized products
•Engineering activities need to be added to product lead time •Upon receipt of a customer order, the order engineering requirements and specifications are not known in detail •There is a substantial amount of design and engineering analysis required
Examples: Power Plant boiler Office furniture
17
New cards
Make to order
•similar design, customized during production
•Products/services that are made to customer's specs but only after an order is received •Product/service is customized
Examples: Custom built home tailor made suit
18
New cards
Assemble to order
•produced from standard components and modules
•Standard components are produced in anticipation of demand •Once an order is received, components can be combined in different ways to accommodate different customer specs •Some customization •Delivery time shorter than make-to-order
Examples: computers omelet
19
New cards
Make to stock
•goods made and held in inventory in advance of customer
•Each unit is produced or assembled by going through same series of operations in same order
Examples: Mcdonalds food retail items
20
New cards
What are the competitive priorities
-Cost, Quality, Time, Flexibility, Innovation
21
New cards
Efficient Supply Chains
•Supply predictable, stable •Demand predictable, stable •Focus on efficiency at the lowest possible cost •Maintain high resource utilization •Automation •Mass production •Minimize inventory •Centralization •Shorten lead time as long as it doesn't increase cost •Select primarily for cost, quality, and dependable lead-times •Reliable, on-time •High volume
22
New cards
Responsive Supply Chains
•Supply predictable •Demand unpredictable •Respond to rapidly changing consumer tastes •Common Components •Postponement •Mass Customization •Deploy significant buffer stocks of parts or finished goods •Invest aggressively in ways to reduce lead time •Select primarily for speed, flexibility, and quality •High product variety •Configuration closer to customer •Rapid product introduction
23
New cards
Agile supply chains
•Supply unpredictable •Demand unpredictable •Focus on customer satisfaction over product life-cycle •Build-to-order •Use capacity to protect against disruptions •Postponement •Inventory pooling •Fast, flexible, on-time •Close Relationships •Joint product development •Low volume •Configured at delivery •Reconfigurable during life-cycle
24
New cards
Risk-hedging supply chains
•Supply unpredictable •Demand predictable •Protect against supply disruptions •Redundant capacity •Redundancy •Inventory buffers and stockpiles •Flexible distribution networks •Multi-sourcing •Select on quality, availability, lead-time •Reduce SC complexity •Risk-Sharing •R&D Collaboration
25
New cards
Process Structure in Services
1.Customer Contact -The extent to which the customer is actively involved and receives personal attention during the service process
2.Customization -Service level: highly customized to standardized
3.Co-Production -What role will the customer play
4.Process Divergence -The extent to which the process is highly customized with considerable latitude as to how its tasks are performed
5.Flow -How the work progresses through the sequence of steps
26
New cards
Levels of Process Design
Tasks: Specific unit of work required to create an output
Activity: Group of tasks needed to create and deliver an intermediate or final output
Process: Sequence of activity
Value Chain: Network of processes
27
New cards
Process Analysis
-Looks at the tasks and activities in more detail -To identify inefficient tasks -To spot possible opportunities to improve effectiveness -To understand where value can be added
28
New cards
Process Mapping
•Document how inputs become outputs •Essential for developing process improvement ideas
29
New cards
Process Flow Charts
Holding (Triangle): -Raw materials -work in process -finished goods inventory
Processing step (Rectangle)
Decision Point (Diamond)
30
New cards
Capacity
•When measured as time, it is the amount of time available to produce the output of a process measured in time per unit of time
•The amount of time to complete a task (measured as time/unit)
-Average, min, max
32
New cards
Flow Time
•The time to get 1 unit through all tasks in a processes (measured as time/unit)
33
New cards
Throughput
•The time to get 1 unit through all tasks in a processes (measured as time/unit)
-output rate -average number of units completed per unit time -measured in units/ time
34
New cards
Bottleneck
•The process stage with the longest cycle time •Limits the throughput of the entire process
•Increase capacity of bottleneck to increase the throughput of the process as a whole -Additional workers -Cross-train workers -More/faster equipment
35
New cards
Work in Process (WIP)
Average number of units in system over a time interval. Measured as units
36
New cards
Buffering
Keep some inventory between stages
37
New cards
Starving
stoppage of activity because of lack of material
38
New cards
Blocking
Stoppage of flow because there is not storage place
39
New cards
Utilization
•Fraction of time a workstation or individual is busy over the long run
40
New cards
•Labor Utilization:
useful time (namely, time actually working on a product or delivering a service) spent by workers as a percentage of the total time for which they are available (and being paid)
41
New cards
•Machine Utilization:
amount of time machines are used as a percentage of time available
42
New cards
Facility Layout
-Efficiency and effectiveness •Vision and goals of the organization •Land availability •Space requirements •Flexibility •Security •Aesthetic factors •The community and environment
43
New cards
Layout Types: Product
Equipment is located according to progressive steps required to produce product/service
• Standard products/services produced using same process • Workload balancing techniques
Advantages: •Low unit costs (economies of scale) •High utilization •Specialized equipment
Disadvantages: •Low mix flexibility •Not robust against disruptions •High capital investment •Repetitive work for staff
44
New cards
Layout Types: Fixed Position
Product remains stationary at one location
• Equipment, materials, and labor moved to product • Resource location analysis
Advantages: •Very high product & mix flexibility •Product/customer stationary •High task variety for staff
Disadvantages: •Very high unit costs •Scheduling space & activities is complex
45
New cards
Layout Types: Functional (Process)
Operations performed in common, functional areas regardless of product being produced
• Travel between areas is based required functions for product • Flow charts and relationship charts
Advantages: •High product & mix flexibility •Robust against disruption •Easy to supervise
Disadvantages: •Low utilization •Can have very high WIP •Complex flows and scheduling
46
New cards
Layout Types: Cellular
Labor & machines grouped in cells according to families of parts with similar processing requirements
• Combination of process and product layout • Product flow analysis
Advantages: •Good compromise between process and product layouts •Fast throughput •Group work can lead to motivation for workers
Disadvantages: •Can be costly to rearrange existing layout •Can result in extra equipment •High space requirements
47
New cards
Line Balancing
-Balance work between stations to maximize output -With the desired output rate (production goal)
48
New cards
How to line balance
•Collect cycle time for each task in process
•Precedence relationships among tasks -Know the relationship between each task -Know how the tasks should be sequenced •Know the desired output rate
•Grouping tasks: longest operating time rule -Identify the task with the longest cycle time -Group all other tasks so that the processing time of the grouped tasks is ≤ the longest cycle time
49
New cards
Scheduling
•Better scheduling results in better service •Data driven -> turns information into work to be done -applies to all aspects of a value chain
•Requires a high degree of analysis and judgment -No single right way to do scheduling -Requires logical mindset: ability to juggle multiple requirements and constraints to determine the optimal schedule •Requires a deep understanding of People, Processes, and Systems
50
New cards
People (Scheduling)
-Operational knowledge of capabilities, strengths/weaknesses -Potential bottlenecks of workforce -How these might impact a given schedule
51
New cards
Processes
-Process analysis: how things are done, order of tasks, cycle times, capacity, throughput, impact of quality
52
New cards
Systems
-Super-user capabilities to utilize ERP tools to gather forecasts and order data to produce working schedules
53
New cards
Competencies of a valuable scheduler
•Discerning, independent, data-driven thinker •Quick learner; apply lessons learned •Good memory •Able to "connect the dots" between different functions and impact of requests/upsets •Process Mindset; readily knows the flow of Ops •Accountable, hi degree of ownership to decisions -customer-focused
54
New cards
Scheduling and sequencing
- Assignment of start and completion times to particular jobs, people, or equipment
-Determination of the order in which jobs or tasks are processd
55
New cards
Staff Scheduling
•Attempts to match available personnel with the needs of the organization by: -Accurately forecasting demand -Translating the forecast into the quantity and timing of work to be done -Determining the staffing required to perform the work by time period
challenges: -Vacation, days off -Full-time vs part-time mix •Developing a work schedule that maximizes service and minimizes costs
56
New cards
Appointments
•Reservation of service time and capacity •Help maximize the use of time-dependent service capacity and reduce the risk of no-shows •Reduce the cost of providing services as the service providers are idle less each workday
57
New cards
Designing appointment systems
-Determining the appointment time interval -Determining workday length and time off duty -Deciding how to handle overbooking -Developing customer appointment rules that maximize customer satisfaction
58
New cards
Sequencing
•Sequencing the way work is done -> necessary when the product/service uses a common resource
-Machine: a plan for other processes so that the common machine is never idle -Customer service representative: Call center routing of calls or an appointment process -Delivery Truck: efficient routing
59
New cards
Vehicle routing and scheduling
•Common process in distribution systems •Vehicle routing problems
Optimization: Complete enumeration of all possible routes to find the best route plan -> LP model -Shorted total delivery time or shortest distance -Helps reduce operating costs and greenhouse gas emissions
Constraints: Vehicle capacity Drivers working hours
60
New cards
Benihana Concept
Good food, entertainment, moderate price, quick meal, great space utilization
Food costs 30%-35% Beverage costs 20%
well trained, Japanese chefs
61
New cards
Body Scans and Bottlenecks Case
Current process for CT scans was long and had bottle necks
Exploit the constraint: -Technologist take 4 minutes of work from the nurse -Process capacity per scanner would grow