Old Material(OPS)

deciding what resources are needed, when they will be needed, where it will be done, how it will be designed and who is the person to work on it

a set of interrelated parts that must work together
- interrelationshisp
-whole is greater than the sum of its parts
- output and objectives of the organization take precedence over those of any one subsystem

Frederick Winslow Taylor

Adam Smith

Reorder Point – item is reorderd when item runs out
-the ideal situation is when you have enough inventory on hand that when you do run out your

Classifies inventory according to some measure of imporatance and allocating control efforts accordingly
-important with customer service
-cycle counting – physically counting the inventory on stock
-A very important
-B moderately important
-C Least important

- The order size that minimizes total annual cost

- Orders received incrementally
- Can use batch mode production

Meet demand
Production requirements- seasonal inventories
Decouple Operations – Decreasing inventory buffers
Protect against stockouts- protect against losing all of your inventory
Take Advantage of order cycles – Cycle Stock – a large amount of stock
Hedge Against Price Increases
Permit Operations – Little Laws – the average amount of inventory in a system is equal to the product of the average demand rate and the average time a unit is in the system
Quantity Discounts

1. Raw Materials and Purchased Parts
2. Partially Completed Goods
3. Finished Good Inventories
4. Tools and Supplies
5 Maintenance and Repairs
6.Goods in transit

can manage the quality
-created quality trilogy
- statistical method

-created total quality field

Zero Defects
Quality is Free
Who is Ishikawa?
-created quality circles and cause and effect diagram

Created the Taguchi Loss Function – Cost Control measure

Created the concept of continuous improvement?

-Deming Prize
-setup up quality management in Japan
-14 Points
-Psychology was the most powerful elecment of profound knowledge

-Father of statistical quality Control
-Focused on the technical aspect

-the ability of a product or service to consitenly meet or exceed customer expectations

- Loss of business
-Liability
-Productivity
-Costs

-ensure quality or uncover defects
- related to good quality

-ensure quality or uncover defects
- related to good quality

- costs of preventing defects from occurring
-related to good quality

- costs caused by defective parts or products or by faulty services
-related to poor quality

involves everyone in an organization in a
continual effort to improve quality and
achieve customer satisfaction.

W. Edwards Deming.

is randomn or not in control when it is really not random or in control

is not random or in control when it is really random or not in control

statistical evaluation of the output of a process during production.

little inspection
-costs are low for passing defective items
-automated

High inspection
-costs are higher to pass a defective item

“Control charts are based on the premise that a process which is stable will reflect randomness: statistics of samples taken from the process (means, number of defects, etc.) will conform to a sampling distribution with known characteristics, so that statistical significance tests can be performed on sample statistics; and successive samples will not reveal any patterns which will enable prediction of future values other than specification of range of variability..”

a layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow.

a layout that can handle varied processing requirements.

layout in which the product or project remains stationary and workers, materials and equipment are moved about as needed.

layouts in which machines are grouped into a cell that can process items that have similar processing requirements.

layouts for the production of a low volume of each of a large variety of goods (or services).

layouts for the production of a moderate variety of end items in batches.

- higher volumes of standized gooeds
-only slight flexibility of the equipment is needed
-assembly line

- a electricity facility

Simple to Complex
-nonrepetivite set
-Titanic

he use of computers in process control.

a system for linking a broad range of manufacturing systems through an integrating computer system.

a group of machines designed to handle intermittent processing requirements and produce a variety of similar products.

cutting machines that are directed by a tape produced by a digital computer.

grouping items that have similar design or processing characteristics into part families.

machinery that has sensing and control devices that enable it to operate automatically.

Detroit Type of automation, fixed sequence of operations,
low cost and high variety

variety of low volume products in small batches

less changeover time, more customizable
- less need for batch processes

- products that are ordered the most are put in the front, and vice versa
- items that are closely related are grouped together

cost minimization and product flow
-Traffic Patterns and traffic flow

- openness, low rise office walls

-atm machines, online banking, and electronic funds transfer

are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders.

Situation where a process, procedure, or system yields less than the best possible outcome or output, caused by a lack of best possible coordination between different components, elements, parts, etc.

the event that will occur is known beforehand.

there is a known probability distribution for the events.

the possible events that could occur are known, but the probability distribution is unknown.

a pessimistic view of the possible outcomes of the decision process under uncertainty; select the alternative with the best of the worst payoffs.

an optimistic approach to decision making under uncertainty; select the alternative with the best single payoff.

assign equal probabilities to all events, and choose the alternative with the highest expected value.

a cautious approach to decision making under uncertainty; the absolute value of the difference between the payoff associated with an alternative-event pair (A, E) and the highest payoff for any decision in the E column of the matrix.

the best expected value among the alternatives.

the expected payoff assuming certainty minus the optimal payoff under risk; also the least expected value of the regret.

a schematic representation of the available alternatives and their possible consequences.

determining the range of probability for which an alternative has the best expected payoff.

taking into account the capabilities of the organization to deliver a particular product or service.

designing products to allow for disassembly in order to recover components and materials for reuse.

designing products with manufacturing capabilities in mind, so as to make them easy to produce, and to make it easy to avoid mistakes.

integrating the "voice of the customer" into product and service design.

Key Points to Follow:

“Eliminate Waste”-

Defects
Overproduction
Transportation
Waiting
Inventory
Motion
Processing itself

Identify the Constraint

Decide how to Exploit the Constraint

Subordinate and Synchronize everything to the above decision

Elevate the performance of the constraint

If the constraint shifts, go to 1

The resources and activities of an organization are elements of an interdependent network, and as such will be managed to optimize the performance of the entire organization.

-Emphasis Productivity

Highly coordinated system that uses minimal resources and produces high-quality goods or services.

A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed

Eliminating those tiny wasteful practices, he wrote, could make a big difference between success and failure."

A Balance System

narrow focus
Scheduling materials
Scheduling services of production

broad focus
Vendor relations
Human relations
Technology management
Materials and inventory management

Kanban: Card or other device that communicates demand for work or materials from the preceding station

Kanban is the Japanese word meaning “signal” or “visible record”

Paperless production control system

Authority to pull, or produce comes from a downstream process.

Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame.

Limited time frame
Narrow focus, specific objectives
Less bureaucratic

Program Management
Portfolio Management

Indicates most critical activities
Show where delays will not affect project

Graphically displays project activities
Estimates how long the project will take

diagram of project activities that shows sequential

a network diagram convention in which arrows designate activities

a network diagram convention in which nodes designate activities.

steps in the project that consume resources and/or time.

the starting and finishing of activities, designated by nodes in the AOA convention.

Sequence of activities that leads from the starting node to the finishing node

The longest path; determines expected project duration

Allowable slippage for path; the difference the length of path and the length of critical path

shortening activity duration
Crash the least expensive activity

Identify potential risks
Analyze and assess risks
Establish contingency plans
Work to minimize occurrence of risk
Minimize Impact
Improve Recovery