OPERATIONS RISK AND IMPROVEMENT

WHY IS IMPROVEMENT IMPORTANT

we can shift towards a focus on improvmenet due to:

  • peceived increase in the intensity of competitive pressure

  • nature of the world trade is changing

  • new technology

  • new ideas

  • scope of OM

this relates to the Red Queen effect- Valen compared the surivial of animals to businesses- the struggle for survival never gets easier

RADICAL OR BREAKTHROUGH CHANGE

improvments need major, dramatic change

their impact is sudden aprupt and expensive

it has large invesment and distruption

CONTINOUS OR INCREMENTAL IMPROVEMNT

this is kaizen

small incremental steps, changes add up

COMBINED IMRPOVEMENT

this is a combination of breakthorugh and continous improvement

EXPLOITATION OR EXPLORATION

exploitation

  • enhances existing processes

  • creates efficincies

  • tight control of improvment process

  • standardised

  • immediate benefits

  • incremental and predictable

  • fits into the existing strategy

exploration

  • new possibilities

  • radically changing

  • new ways of doing things

  • takes risks

  • long term benefits but these are difficult to pedicy

  • hard to take advantage of

ORGAINSATIONAL AMBIDEXTERITY

exploration and explotiating improvement are conflicting for resources and attential

organisation ambidexterity is the ability to exploit and explore this occurs in mature markets thorugh efficiency and new markets through innovation

RISK MANAGEMENT

things happen in operations that have a negative consequence

far reaching effects on operation, reputation, idel time reduction efforts, profitability and customer satisfaction ect

failure will occur in operations recognising this doesnt imply accepting or ignoring it

risk management is about

  • understanding what failurs could occur

  • examining ways of preventing failure

  • minimise the negative consquence of failutes

  • recovering from failutrd

POTENTIAL CAUSES OF FAILURE

  • supplier

  • human

  • operation

  • technological

  • p or s

  • customer

  • environmental

  • esecurity

POST FAILURE ANALYSIS

this looks at previous failures to learn about the sources of potential risk

it is used to uncover the root cause of failure

this includes activities such as:

  • accident investigation

  • failure traceability

  • compliant analysis

  • fault tree analysis

HOW CAN FAILURES BE PREVENTED

  • maintainance- all activities involved in keeping a systems equipment in working order

  • reliability- the profitability that a macine part/product will funcuton properly fot a specigied time under stated conditions

the objective of maintenance and reliability is the maintain the capability of the system

STRATEGIC IMPORTANCE OF MAINTAINANCE AND RELIABILITY

employee involvement

  • autonomous maintanance

  • skills training

  • rewards

  • empowerment

  • continous improvement

maintainence and relibility procedures

  • clean

  • monitor and adkist

  • make minor repairs

  • keep accutate recors

RESULTS

  • reduced variability

  • reduced inventory

  • improved quality

  • improved capacity

YIELDS

  • enhanced productiity

  • winning products

  • profitability

IMPORTANT TACTICS

RELIABILITY

relibility- improving indivisual compoments and providing redundance

  • systems are composed of a series of indivisual interrelated compoments

  • if these compoments are independant the reliability of the system is:

    RS=R1 . R2. R3. Rn

  • the reliability of a compoment is defined as the probability of it performing as intended

  • if the nunmber of compoments increases the reliability of the whole system declines quickly

product failure rate

this is a basic unit measure for reliability

FR%=no. failures/no. units tested x 100%

FR(N)=no. failures/no. unit-hours of operating time

the mean time between failures=1/FR(N)

total time (unit-hour)= time.units

non operating tome= (total hours-failed hour)+(total hour b-failed hour b)

operating time= total time- non operating time

providing redundancy

to increase the reliability of systems redundancy is added in the form of back up compoments

Rs=(profitibility of first compoment working)+[{profitibility of 2nd compement working).(probability of needeing the 2nd compoment)]

reliability with parallel redundancy

another way to enhance reliability is to provide parallel paths

in a parallel system the paths are assumed independant

MAINTENCE

maintainance- implementing or improving maintence, inctrasing repair cpabilities or speed

there are 2 types of maintencne

  • preventitive- monitoring equipment and facilities and performing routine inspection and service to keep equipment and facilities reliable

  • break down- emergency or priority repairs on failed equipment

  • predictive- new tech enables this it uses advanced tech to monitor and predict equipment failure

implementing preventitive maintencne

need to know when a system requires a service or it may fail

high inital failure rates are infant mortaility

once a product settles in MTBF follows a normal distribution

good reporting and record keeping can aid the decision on when preventative maintainance should be performed

computerised maintenance system

we have data failes

  • equipment file

  • work order scheduel

  • repair history

  • invenoty of spare parts

  • personnel data

output reports

  • inventory and purchasing reports

  • equipment parts list

  • equipment history reports

  • cost analysis

  • work orders

maintenance costs

the traditional view attempted to balance preventative and break down maintace costs

this approach failed to consider the full cost of a breakdown

  • invenotry

  • employee saftey and morale

  • scheduel unreliability

BREAKDWON VS PREVENTITIVE MAINTENCE

problems with breakdown maintenace ‘run it till it breaks’

  • might be ok for low crtically equipment or redudant systems

  • could be disastrous for mission critical plant machienry or equipment

  • no permissible for systems that could impact life

problems with preventitive maintencne fix it ‘whether or not it is broken’

  • scheduled replacement or adjustment of parts/equipment with a well established service life

  • sometimes misappliied eg replacing old but still good bearings

Expected number of break downs=sum of number of breakdowns x corresponding frequency

expected breakdown cost= expected number of breakdowns x cost per breakdown

preventitive maintence cost= cost of expected breakdowns if service contrace is signed + cost of service contract

INCREASING REPAIR CAPABILITIES

  1. well trained personnel

  2. adequete resources

  3. ability to repair plan and prioritise

  4. ability and authority to do material planning

  5. ability to identify the cause of breakdown

  6. abiltiy to design ways to extend MTBF

    AUTONOMOUS MAINTENCE

    employees accept respnsibility for:

    • observe

    • check

    • adjust

    • clean

    • notify

    employees can predict failures prevent breakdowns and prolong equippment lfie

    with autonomous maintencne the manager is making a step towards both employee empowerment and maitining system performance

    TOTAL PRODUCTIVE MAINTENANCE

    designing machines that are reliable easy to operate and easy to maintain

    emphasising TC of ownership when purchaisng machiens so that service and maintence are inlcuded in the cost

    developing preventtive maintenance plans that utilise the best practive of oeprators maitencne departments and depot service

    training for autonomous maintence so operators maintain their own machines and partner with maintence personnel