CPIM Part 2: Execution and Control of Operations

More specifically, how are Kanban cards used?

- Each container of parts must have a Kanban card - Parts are always pulled by the user department - No parts are obtained without a Kanban card - All containers contain standard quantities and only the standard container for the part can be used - No extra production is permitted; production can start upon receipt of production card

Aside from the quality tools already listed, brainstorming, nominal group technique and root cause analysis can all be used as quality tools. Describe these.

- Brainstorming: A technique that teams use to generate ideas on a particular subject. Each person on the team is asked to think creatively and write down as many ideas as possible. The ideas are not discussed or reviewed until after the brainstorming session. - Generate ideas - All team members have an opportunity to participate - Nominal Group Technique: A technique, similar to brainstorming, used by teams to generate ideas on a particular subject. Team members are asked to silently come up with as many ideas as possible, writing them down. Each member is then asked to share one idea, which is recorded. After all the ideas are recorded, they are discussed and prioritized by the group. - Similar to brainstorming - Ideas shared one by one - Ideas prioritized by group - Root Cause Analysis: Analytical method(s) to determine the core problem(s) of an organization, process, product, market, and so forth. See: current reality tree, five whys, stratification analysis. - Used within control charting and cause and effect diagramming - Determines core problems Steps: 1.) Describe the problem 2.) Establish cause categories 3.) Identify specific potential causes 4.) Prioritize the causes

What is A3 Problem solving and what are the different types?

- Brings structure and discipline to the PDCA cycle - Helps to arrive at a joint and detailed problem resolution. Underlying causes are thus eliminated 4 Types: - Hoshin Planning A3: Used to summarize department and company hoshins - Problem Solving A3: Used to summarize problems and counter measures - Current Status A3: Used to summarize current condition of a hoshin, problem, or concern Hoshin: A Japanese word meaning statement of objectives. Hoshin Planning: Breakthrough planning. A Japanese strategic planning process in which a company develops up to four vision statements that indicate where the company should be in the next five years. Company goals and work plans are developed based on the vision statements. Periodic audits are then conducted to monitor progress.

Explain each of the 7 Basic Tools of Quality

- Check Sheets - Record number of times particular event occurs - Interpret using other tools - Used to generate histograms, Pareto analysis, or other analysis - Cause and Effect Diagrams (Fishbone or Ishiwanka) - Starts with the effect and then identifies all possible causes - For all possible causes, ask "why" 5 times to get to the ultimate cause of the problem 6 M's used (or Main Phases) that are used to brainstorm ideas about the main causes of the problem include: materials, machines, manpower (people), methods, measurement, and mileage (environment) - Pareto Charting Analysis - 80-20 Rule - Distinguishes between the "vital few" categories that contribute most of the issues to the "trivial many" categories of infrequent occurrence, to support more-focused quality improvement activities - Histograms - To sort data and support rapid comparison of categories of data - Vertical Bar Charts - Frequency Distribution - Groups or classes - Number of items per class - Visualize actual data (not ranked) - Scatter Charts - Can be used to test possible causal relationships and narrow focus on subsequent tests. Most useful if the variables relate to each other. - Plots data points against two variables that form the chart's x and y axes - Control Charting - Flowcharts, or process maps, depict complex processes identifying interdependencies that can cause potential bottlenecks or opportunities for efficiency (e.g. running tasks simultaneously rather than concurrently). They can be powerful tools to visualize processes and improve them, such as streamlining processes to reduce unnecessary steps - Studying flowcharts may reveal improvemnts

What are 2 common methods for determining cost variances?

- Comparing actual costs to costs budgeted at the beginning of the planning period - Comparing actual costs to standard costs based on practical standards

Why does management (especially senior) have such a critical role in quality?

- Create a quality vision - Build a quality culture - Types of change - Model leadership - Recruit the right people - Promote worker self-control - Serve as change agents

Review the following group principles

- Decision making: three tools that are used by teams in decision making are the decision matrix, the 2x2 matrix, and Pareto analysis. Decision making, as opposed to problem solving, is about choosing between several alternatives to move the organization forward toward innovation and growth - Consensus building: Define consensus as a product and a process. Review the benefits and challenges of consensus decision making and when consensus is a good choice for a work group -Gatekeeper: In group dynamics, a technique applied by a team leader to effectively manage a situation, discussion, or meeting. For example, in a situation where a dominant spokesperson or person of authority monopolizes a discussion, the gatekeeper will intervene by requesting additional group members' input. - Others' capabilities and work: No matter the organization, continuous improvement and innovation are keys to survival. This requires us to learn from other and make conscious decisions when forming work groups - Group dynamics: Group dynamics describes the way in which people in a group interact with one another. Review the behaviors that create and maintain a positive group dynamic - Process owners' responsibilities: Process owners are a vital part of successful execution of projects. Discuss the support needed from process owners

What is the difference between vertical and horizontal loading?

Vertical loading: - Jobs are loaded at work centers according to the chosen priority rule. Horizontal loading: - All jobs in all necessary work centers for the planning horizon are loaded. Then the job with the next highest priority is loaded on all required work centers, and so on.

What techniques are used for managing bottlenecks?

- Establish buffer in front of bottleneck: Create time buffer or queue before bottleneck - Control rate of material flowing into bottleneck: Keep bottleneck fed at a constant rate that is equal to its capacity so time buffer remains constant - Focus on maintaining or increasing bottleneck capacity: Look for ways to increase capacity of bottleneck - Adjust loads: Reduce load or bottleneck - Change schedule: Last resort is to change promised schedule for delivery

What are the various types of quality costs?

- Prevention - The costs caused by improvement activities that focus on the reduction of failure and appraisal costs. Typical costs include education, quality training, and supplier certification. Prevention costs are one of four categories of quality costs - Appraisal - Those costs associated with the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, and checking time. - Internal Failure - The cost of things that go wrong before the product reaches the customer. Internal failure costs usually include rework, scrap, downgrades, reinspection, retesting, and process losses. - External Failure - The costs related to problems found after the product reaches the customer. This usually includes such costs as warranty and returns.

What are 4 of the key lean principles that relate to pull systems:

- Produces products only to customer order - Levels demand to smooth workflow - Uses visual signals to link processes with demand - Maximizes flexibility of machinery and people

Execution of MRP schedule turns the operation plans into reality. Output of the scheduling process is the release of the work order. These both relate to authorizing production. What are the authorization steps:

- Receive authorization to release order - Check tooling and material availability - Check capacity requirements and availability - Release order to manufacturing

What responsibilities do different levels of management have?

- Senior leadership is most heavily involved in quality planning - Middle management is most involved in quality control activities - Team leaders and employees are most involved in quality improvement

Standardized work:

-A work process that is always carried out exactly the same way, preferably using the current best known way under which the output can be achieved.

What do ERP systems provide organizations with?

-Greater visibility of financial and operational performance -Adoption of better, integrated business processes -Improved control of operations -Better communication and information exchange with customers -Integration with supply chains of customers and suppliers

Total Quality Control (TQC)

-The process of creating and producing the total composite good and service characteristics (by marketing, engineering, manufacturing, purchasing, etc.) through which the good and service will meet the expectations of customers.

What are the steps in TOC Scheduling?

1.) Create a network diagram 2.) Form a product network 3.) Assess capacity utilization by work center 4.) Schedule work center 5a.) Schedule bottleneck resources 5b.) Schedule non-bottleneck resources Goal: To determine bottleneck and non-bottleneck resources. If an organization is able to do this, they will know where to focus their continuous improvement efforts

If the schedule is not supported by available capacity, shop floor control will not be able to:

1.) Decrease backlogs 2.) Improve delivery performance 3.) Achieve output targets 4.) Achieve the material requirements plans that drive the delivery schedules for end items and components to achieve the MPS

Principles of effective measurement requires having good standards. For example: safety and environmental standards or quality standards. An organization must determine what to measure, why, and by when. What are the 10 steps used to determine how to develop effective measurements.

1.) Define the purpose and use of the measurement 2.) Call attention to customer-related measurements 3.) Focus on what is useful - not just the easiest items to gather 4.) Get participation from all levels of the organization 5.) Provide measurements in as close to real time as possible 6.) Include concurrent leading and lagging indicators 7.) Provide a plan for data collection and storage, analysis, and presentation 8.) Make data recording, analysis, and presentation simple 9.) Periodically evaluate for accuracy, integrity, and usefulness of measurements 10.) Recognize that measurement alone cannot improve products and processes

What are the 3 steps to calculating lead time?

1.) separate lead time into queue and non-queue time 2.) Convert non-queue time to days 3.) Assign queue time based on routing distance to next work center (i.e. different department, different machine, etc.) 4.) Calculate lead time as the sum of queue and non-queue times

In input/output control (I/O), measuring planned input and planned output vs. actual input and actual output is very important. Countpoints are used to measure actual levels. Define count point:

A point in a flow of material or sequence of operations at which parts, subassemblies, or assemblies are counted as being complete. Count points may be designated at the ends of lines or upon removal from a work center, but most often they are designated as the points at which material transfers from one department to another. Syn: pay point.

What is meant by a closed-loop MRP?

A system built around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control processes of input-output (capacity) measurement and detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so the planning can be kept valid at all times.

Describe Quality Function Deployment (QFD)

A technique that can be used to determine customer requirements for a new product or service, or updates modifications to the product or service. It is also known as the "House of Quality," because of the shape of the matrix and as the "Voice of the customer" because of its purpose in aligning product design with customer requirements. Everything starts and ends with the customer.

How is theory of constraints scheduling / resource-limited scheduling defined and what do organizations use TOC scheduling for?

Addresses a problem faced by many organizations: how to increase production capability through plant scheduling systems that use TOC concepts to overcome constraints on production. Organizations use TOC scheduling to: - Identify and schedule constraints carefully - Buffer constraints with inventory - Maximize utilization at bottlenecks or constrained resources - Maximize system throughput

Back scheduling, forward scheduling, and central point scheduling are all PAC scheduling techniques that are used to ensure delivery dates are met. Define all. Critical operation is an important concept in scheduling. Describe

Back or Backward Scheduling: Starts from the due date and works backward to find the latest time the operation could start Forward scheduling: simply the opposite of backward scheduling, so it starts from the earliest date the material can be ordered (such as just after an order is received from a customer) an adds the lead times to find the earliest time the operation could be finished Central Point Scheduling: the combination of backward and forward scheduling. Used to handle critical operation whose dates must be set or determined first. Critical Operation determines the rest of the lead time and, therefore, the start and due dates. For the critical operation and all subsequent operations, forward scheduling is used. For operations before the critical operation, backward scheduling is used

PAC is concerned with converting plans into action, reporting the results achieved, and revising plans and actions as required, achieving desired results. This can be done through batch or flow manufacturing. Compare these:

Batch Production: - High-variety, low-volume make-to-order products - Varied routings through general purpose equipment - Operations time at work centers will vary - High risk that work arrives at work centers late or early - Slow throughput - Work in process (WIP) builds up - Capacity required varies by item Flow manufacturing: - Standard high-volume products - Fixed routings: dedicated assembly lines or flow equipment - Operations time at work centers about the same: balanced - Flow between work centers is predictable - Fast throughput - Low WIP - Capacity fixed by line

Describe operation overlapping and lot splitting

Both are approaches used to shorten manufacturing lead time Overlapping: The next operation begins before the entire lot or process batch is completed in the first operation Lot Splitting: Performing the same operation in two locations (splitting the lot). Works best when one operator can operate more than one machine at a time

Define capacity-constrained resource (CCR) and list the elements of constraint management:

Capacity-Constrained Resource (CCR): A resource that is not a constraint but will become a constraint unless scheduled carefully. Any resource that, if its capacity is not carefully managed, is likely to compromise the throughput of the organization. Elements of constraint management: 1.) Identify the CCR before it becomes a bottleneck 2.) Exploit - keep the CCR working 3.) Subordinate - feed into the process only what can be handled at the CCR 4.) Elevate - accelerate and improve the CCR 5.) Repeat - after fixing the CCR, return to step 1 to attack the new CCR

What inputs go into make a schedule / what questions need to be answered? (Make sure to review the last 3 listed)

What to make When to make it Where to make it How to make How much to make Time needed Material Availability Due Date Machine maintenance schedules / failure rates Expected rework and scrap percentages Other demands on facility

Define: cost control, cost accounting, cost variance, actual costs, and standard costs. All of these go into controlling operations costs:

Cost Control: Applying procedures that monitor the progress of operations against authorized budgets and taking action to achieve minimal costs. Cost Accounting: -The branch of accounting that is concerned with recording and reporting business operating costs. It includes the reporting of costs by departments, activities, and products. Cost Variance: In cost accounting, the difference between what has been budgeted for an activity and what it actually costs. Actual costs: Labor, material, and associated overhead costs that are charged against a job as it moves through production Standard costs: Based on estimates by production and engineering of the quantity and cost of direct materials, direct labor, and overhead required to make a single unit of an item

There are various types of teams. List explain

Cross functional: Jointly and simultaneously make design and manufacturing decisions Self Directed: Plan, schedule, and control their own work to achieve a defined output Quality: Charged with carrying out improvement efforts - Types of quality teams: - Quality Improvement project: respond to cross-functional quality issues - Workforce: resolve issues within a department - Quality business process: plan, control, and improve the quality of a cross-functional process - Self-directed: Plan, execute, and control work to achieve a specific outcome - Kaizen Circle: Manager brings a critical problem and sponsors the kaizen. Output is a presentation to management - Quality Circle: Identify quality and productivity problems, propose solutions, monitor implementation

What are examples of key performance reports?

Day-by-the-hour First-time-through WIP-to-standard WIP Overall Equipment Effectiveness The purpose of these reports is to force immediate action to correct problems identified by continuous data collection and anlaysis

Manufacturing processes, layout, and environment can either result in flow manufacturing or intermittent manufacturing. Describe intermittent manufacturing: the processes associated with and the 4 critical points involved.

Definition: A form of manufacturing in which the jobs pass through the functional departments in lots, and each lot may have a different routing. See: job shop. Processes: Batch, Work Center Process Types: Functional, Some Cellular Environments: Some MTO, some ATO 3 Critical Points -Transfer batch: The quantity of an item moved between sequential work centers during production. See: batch, overlap quantity. -Lot sizing -Reorder Point

Manufacturing processes, layout, and environment can either result in flow manufacturing or intermittent manufacturing. Describe flow manufacturing: the processes associated with and the 4 critical points involved.

Definition: A form of manufacturing organization in which machines and operators handle a standard, usually uninterrupted, material flow. The operators generally perform the same operations for each production run. A flow shop is often referred to as a mass production shop or is said to have a continuous manufacturing layout. The plant layout (arrangement of machines, benches, assembly lines, etc.) is designed to facilitate a product "flow." Some process industries (chemicals, oil, paint, etc.) are extreme examples of flow shops. Each product, though variable in material specifications, uses the same flow pattern through the shop. Production is set at a given rate, and the products are generally manufactured in bulk. Syn: flow line, flow manufacturing, flow plant. Processes: Batch flow, line, and continuous (not work center or project) Process Types: Product based, cellular, and some functional (Not fixed position) Environments: MTS, ATO, and some MTO 4 Critical Points: - Identify and manage potential bottlenecks - Identify constraints on resources - Minimize waste - Optimize coupling and connectivity

Describe Production Activity Control. What is it responsible for? What does MRP authorize PAC to do? If done correctly, what will PAC result in?

Definition: The function of routing and dispatching the work to be accomplished through the production facility and of performing supplier control. PAC encompasses the principles, approaches, and techniques needed to schedule, control, measure, and evaluate the effectiveness of production operations. See: shop floor control. PAC is responsible for executing the master production schedule and material requirements plan MRP authorizes PAC to: - Release work orders to the shop for manufacturing - Take control of work orders and make sure the are completed on time - Be responsible for the immediate detailed planning of the flow of orders through manufacturing - Manage day-to-day activity and provide necessary support If done correctly, PAC will: - Manage materials flow to meet MPC plans - Plan and release individual orders to factory and outside vendors - Ensure that company meets customer service goals - Shorten both move and queue - Provide early warning signals and status information to other MPC modules - Provide feedback on shop and supplier's performance against plans

Describe what design decisions, delivery decisions, and development decisions are. They are all used as details of an operational plan.

Design decisions: Strategic decisions concerned with the design of operations and processes Delivery decisions: Strategic decisions concerned w/ planning and controlling the delivery of products and services Development decisions: Strategic decisions, concerned with the development of operations performance

What are some common priority rules (or work sequencing rules)?

Due Date Order slack (slack = The amount of time by which the completion of an activity in a project network can increase without delaying the start of the next activity.) Slack per operation Critical Ratio Shortest Operation Next

Design Principles ae an important component of a business's overall operations, bot in terms of maximizing the effectiveness of the production process and meeting the needs of employees. There are 3 levels: Global, network, local. Describe all

Global: Design principles affecting the organization's relationship to the physical environment and society, including local communities, the workforce, and sustainability Network: Design principles guiding collaborative interaction with up and downstream suppliers and customers Local: Design principles shaping the internal activities of the organizations

Throughput is a key metric to improve efficiency. Review the metrics directly related to throughput:

Efficiency: (Total output / standard output expected) Utilization: (actual time used / total available time) Productivity: actual output compared to actual input Takt time: (available production time / rate of customer demand) Cycle Time or Throughput Time - Cycle Time: the time between the completion of two discrete units of production. - Throughput Time: Rate at which items are passing through a system Visual Management or Visual Signs: A management system whereby every metric that matters, standardized work, and improvement approaches are displayed on the shop floor and in the office.

Define employee involvement and empowerment: Also list critical success factors to employee involvement and empowerment:

Employee involvement (EI): The concept of using the experience, creative energy, and intelligence of all employees by treating them with respect, keeping them informed, and including them and their ideas in decision-making processes appropriate to their areas of expertise. Employee involvement focuses on quality and productivity improvements. Syn: people involvement. Employee Empowerment: The practice of giving nonmanagerial employees the responsibility and the power to make decisions regarding their jobs or tasks. It is associated with the practice of transfer of managerial responsibility to the employee. Empowerment allows the employee to take on responsibility for tasks normally associated with staff specialists. Examples include allowing the employee to make scheduling, quality, process design, or purchasing decisions. Critical success factors: - Management shapes policy direction - Management provides feedback - Workers have skills, varying attitudes and capabilities - Quality goal setting is collaborative - Management is supportive - The culture of the organization

Two Tenets of Lean Scheduling:

Even distribution of production mix and volume over time Standardization and stabilization of work

Describe Failure Mode and Effects Analysis (FMEA):

FMEA: Evaluate a design process to identify and rank potential failures - Looks at product or service failures and rates them based on: - Probability of failure - Degree of severity - Likelihood of escaping detection - Recovering from failures: Discover, Act, Learn, Plan

What are some common dispatching rule?

Fist come, firs served (FCFS): A dispatching rule under which the jobs are sequenced by their arrival times. See: first-in, first-out. Earliest Job Due Date (EDD): A priority rule that sequences the jobs in a queue according to their (operation or job) due dates. See: earliest operation due date. Earliest Operation Due Date (ODD): A dispatching rule that selects the job having the earliest due date for the impending operation. See: earliest due date. Shortest Process Time (SPT): A dispatching rule that directs the sequencing of jobs in ascending order by processing time. If this rule is followed, the most jobs at a work center per time period will be processed. As a result, the average lateness of jobs at that work center is minimized, but some jobs will be very late. Syn: smallest processing time rule. Critical Ratio: A dispatching rule that calculates a priority index number by dividing the time to due date remaining by the expected elapsed time to finish the job. A ratio less than 1.0 indicates the job is behind schedule, a ratio greater than 1.0 indicates the job is ahead of schedule, and a ratio of 1.0 indicates the job is on schedule. (=Time Remaining / Work Remaining) Slack Time: A dispatching rule that directs the sequencing of jobs based on slack time. Slack time is calculated as (days left until due date multiplied by hours per day) minus standard hours of work left on a specific job. For example, (5 × 8) - 12 = 28 hours of slack. The smaller the amount of slack time for a specific job, the higher the priority that job becomes in the sequence.

List each of the manufacturing process layouts and describe the environment, process type, variety level, volume level benefits and limitations of each

Fixed Position Layout: - Environment: ETO - Process Type: Project - Variety: High - Volume: Low - Benefits: High independence of production centers, high flexibility and adaptability, low capital investment, low amount of material movement - Limitations: High effort when moving machines to the location, highly skilled labor is needed, limited storage space for materials Functional (Process) Layout: - Environment(s): MTO (some ATO) - Process Type(s): Work Center (some Batch) - Variety: Higher - Volume: Lower - Benefits: High equipment flexibility and need for fewer machines, more specialized supervision, ability to transfer work leads to low risk for loss of production due to machinery breakdowns - Limitations: Wait time leads to higher total production time, bottleneck potential is high, higher handling costs due to longer product flow-time Cellular Layout: - Environment: ATO (Some MTS) - Process Type: Batch and Line - Variety: Lower - Volume: Higher - Benefits: Minimizes material-handling distances/factory floor space requirements, faster processing time, no WIP inventory accumulates, lead times shrink, reduced FG inventory - Limitations: Works only if products can be grouped into product families, employees know only their job within their cell, locating work centers or cells near each other Product-Based Layout: - Environment: MTS - Process Type: Continuous and Line - Variety: Low - Volume: High - Benefits: Lower total material-handling costs, less WIP, less floor area occupied by material in-transit and storage, simplicity of production control, total production is minimized, high degree of equipment and utilization - Limitations: Limited flexibility, manufacturing costs increase, single machine breakdown could shut down the whole production line, cannot easily respond to system changes

Explain the differences between forward and backward scheduling techniques? Both are used to calculate production start and completion dates, but have many differences

Forward - Material procurement and operations scheduling - Operations usually scheduled from first to last - More inventory is built-up than back scheduling - If I start now, when can I have it? Used when: Resources are under-loaded or capacity-related costs are high and load leveling is desired Backward -Uses MRP Logic: works back from MRP due date to determine operation start dates. - Last operation scheduled first; previous operations scheduled back from start to last. Less inventory build-up than forward scheduling. - When must this be started in order to finish be the desired date? Used When: Low inventory is a top priority and production is synchronized with order due date

What are some of the control techniques used in lean?

Hijunka: Refers to producing only enough to cover takt time and meet consumer demand Takt time: the time it takes to manufacture a specific product, ship it and get it into the hands of a customer. Kanban systems Avoidance of muda, or wasteful activity, in all business operations

What benefits are associated with TOC?

Increased profit Fast improvement Improved capacity Reduced lead times Reduced inventory

Describe infinite and finite loading

Infinite Loading: - Can be used in conjunction with either forward or backward scheduling of operations - The primary goal of infinite loading is to meet due dates by having a high degree of flexibility in capacity - Most useful when priority is given to due dates, as when material is planned first. - Example: MTO production in a job shop manufacturing process Finite Loading: - Can be used in conjunction with either forward or backward scheduling of operations - The goal is to prevent overloads - The schedule must be highly flexible for finite loading to work

Available capacity is a major consideration in scheduling and the execution of the actual work. Loading is the calculation of the capacity required, based on operations setup and run time be period, at work centers in the product routing. Capacity required is the rate at which work needs to get done. Two approaches are used for loading work centers: infinite loading and finite loading. Describe both

Infinite loading: - Jobs are assigned to work centers without regard for the capacity of the work center - Priority rules are appropriate for use - Jobs are loaded at work centers according to the chosen priority rule. This is known as vertical loading Finite Loading: - The actual start and stop times of each job at each work center are projected - The capacity of each work center is considered and the processing times are compared so that process time does not exceed capacity - The scheduler loads all jobs in all necessary work center for the planning horizon. Then the job with the next highest priority is loaded on all required work centers, and so on. This process is referred to as horizontal loading.

Describe a Push System by listing the information push top to bottom and the steps involved in execution

Information Push: - S&OP / Resource Planning - MPS/RCCP - Material Planning - Work Order - Work Center - Capacity Planning - Purchase Order - Supplier Execution: - Sequence of work -Setup time and changeovers -Resource constraints -Alternate routings -Scheduling method -Load Leveling -Input/output control

Controlling production is important. What are some of the goals regarding control?

Integrated Performance Management: - Performance measures are best when aggregated into a hierarchical relationship - A critical success factor is the logical and consistent relationship between all levels - Frequency of measurement is highest at the operation level Balanced scorecard: - Dimensions should include financial, customer, business, and continuous improvement - Reporting should be selective, focusing on limited number of key measures that are critical to the organization in measures that fit the organizational units Performance Targets: - The ability to analyze historical performance data, impacts the ability to set realistic targets for performance - Compare the actual performance against the goal to determine gaps and how to adjust appropriately

Compare intermittent and flow processes by listing the process types associated with each and the layout, routing, scheduling, control, transaction requirements, and productivity tools used for each process type

Intermittent Processes: - Work Center - Layout: Functional (process) - Routing: Product Specific - Scheduling: Operations - Control: MRP/PAC - Transaction Requirements: Very High - Productivity Tools: TOC/Six Sigma - Batch - Layout: Functional (process) - Routing: Product Specific - Scheduling: Operations - Control: MRP/PAC - Transaction Requirements: Very High - Productivity Tools: TOC/Six Sigma Flow Process: - Batch Flow -Layout: Cellular/Product - Based - Routing: Product-specific - Scheduling: Operations or rate-based - Control: MRP/PAC - Transaction Requirements: Medium - Productivity Tools: Lean/TOC/Six Sigma - Line -Layout: Cellular/Product - Based - Routing: Fixed - Scheduling: Production, Rate-Based - Control: MRP/PAC - Transaction Requirements: Low - Productivity Tools: Lean/TOC/Six Sigma - Continuous flow - Layout: Product - Routing: Fixed - Scheduling: Production, Rate-Based - Control: MRP/Process Flow Scheduling - Transaction Requirements: Low - Productivity Tools: Lean/TOC/Six Sigma

Which types of schedules are more detailed: intermittent/batch manufacturing processes or flow manufacturing?

Intermittent/Batch manufacturing processes (performed in job shops) are more detailed than flow manufacturing, because production flows uninterrupted through assembly lines or dedicated process flow equipment. There are fewer work centers, queues, setups, waits, and moves

Kaizen, kaizen blitz, and kaizen event

Kaizen: The Japanese term for improvement; refers to continuing improvement involving everyone— managers and workers. In manufacturing, kaizen relates to finding and eliminating waste in machinery, labor, or production methods. See: continuous process improvement. Kaizen Blitz: A rapid improvement of a limited process area; for example, a production cell. Part of the improvement team consists of workers in that area. The objectives are to use innovative thinking to eliminate non-value-added work and to immediately implement the changes within a week or less. Ownership of the improvement by the area work team and the development of the team's problem-solving skills are additional benefits. See: kaizen event. Kaizen Event: A time-boxed set of activities carried out by the cell team during the week of cell implementation. The kaizen event is an implementation arm of a lean manufacturing program. See: kaizen blitz.

What are the trade-offs involved in scheduling?

Labor and equipment Inventory levels Lead Time Processing Times

Lean is focused on eliminating waste. One way that is done is by simplifying documentation. Explain:

Lean production and control allows organizations to simplify the number of reporting and documentation activities found in MRP-based control systems - Simplification of order release: Kanban control instead of work orders - Visibility of material and tooling: Material and tools located at workstations; not issued - Detailed routings unnecessary: Continuous flow through dedicated equipment - Order due dates and start and finish dates unnecessary: Continuous flow; no work center operations reporting necessary - Feedback and reporting minimized: Detailed work center data not necessary - Job packet unnecessary: Kanban control or material movement - Production information at point of use: production reports displayed at cell level (cycle time or take time, defects)

Explain how production leveling relates to scheduling (in a lean environment):

Level Production Planning: Happens before scheduling; convers customer demand into a period-by-period production rate that is based on level-loaded production plans and MPS's Scheduling/Heijunka Scheduling: Planning provides the volume and mix estimates needed for scheduling. Heijunka scheduling levels production throughout the supply chain to match the planned rate of end product sales by model type. It is applied by distributing product volumes an mixes evenly over time so as to meet varying customer demand w/o building excess work-in-process inventories of units greater than currently in demand

What are the 3 components of OEE and the 6 big losses associated with OEE?

Loss of availability: - Breakdowns - Setup and Adjustment Loss of Performance: - Idling and minor stops - Reduced speed Loss of Quality: - Quality losses - Start-up

Even though lean and MRP are distinctly different systems, they are complementary. Lean and MRP each provide separate but linked functions. The key role of MRP is to plan inventory requirements out into the future. The role of lean is to execute the demand pull guiding the actual generation of purchase and manufacturing orders. Review the MRP and Lean differences?

MRP (push-based) system: - Process layout; complex routings - Long lead times - High WIP - High work center utilization = goal - Detailed scheduling routes work through work centers Lean (pull-based) system: - Flow layout; standard routing through cellular layout - Short lead times - Low WIP - Work centers have surge capacity; utilization flexes based on production rate necessary to meet customer orders -Work completed quickly; jobs easily tracked visually

What are the 3 Types of Scheduling?

MRP-Based Theory of Constraints Lean

Compare the differences of MRP and Lean as they relate to push/pull:

MRP: - Classic push system - Computes production schedules for all levels based on forecasts of sales and end items Lean: - Classic pull system - Production at one level only. Happens when initiated by a request at downstream or subsequent level Whatever system is selected, the characteristics must match the manufacturing process and infrastructure in which it will operate

List the ideas associated with lean scheduling:

Make only those products and services customers actually want Match the production rate to the demand rate Make products and services with the shortest possible lead times Include only features actually in demand, excluding all else Keep labor, equipment, materials, and inventory continually in motion, with no waste or unnecessary movement Build worker learning and growth into each operational activity

Describe manufacturing lead time and total manufacturing lead time

Manufacturing lead time is the sum of: - Operation time (load) - Setup: From last good item A to first good item B - Runtime: Time doing operation (not including setup) - Time between operations (Not load) - Queue: Waiting to begin; often largest component - Wait: Waiting after operation ends - Move: Physical move time between operations Total Manufacturing Lead time is the sum of order preparation and release plus the manufacturing lead times for each item.

What is the DMAIC Control Technique?

Often used in quality management and control and is a six sigma method - Define - Measure - Analyze - Improve - Control

What is the relationship between priority rules and dispatching?

Once the organization has determined the priority rules it will use, it uses dispatching to determine the order in which to apply the rules and complete the item on the dispatch list

Operation setback charts and Gantt charts are important tools in scheduling. Define both of these, along with what is meant by operation time.

Operation Time: The total of setup and run time for a specific task. Syn: operation duration. Operation Setback Chart: A graphical display of the bill of materials and lead-time information provided by the routing for each part. The horizontal axis provides the lead time from raw materials purchase to component manufacture to assembly of the finished product. Gantt Charts: Used to make trial and error work center schedules to determine the impact of arrangements. -The earliest and best-known type of planning and control chart, especially designed to show graphically the relationship between planned performance and actual performance over time. Named after its originator, Henry L. Gantt, the chart is used for (1) machine loading, in which one horizontal line is used to represent capacity and another to represent load against that capacity; or (2) monitoring job progress, in which one horizontal line represents the production schedule and another parallel line represents the actual progress of the job against the schedule in time. Syn: job progress chart, milestone chart.

What is the Shewhart/Deming Cycle?

PDCA Plan: Identify problems Do: Test potential solutions Check: Study results Action: Implement the best solution PDCA is at the heart of lean - the involvement of workers in the continuous quest for quality improvement and waste reduction. Particularly effective for: - Helping to implement total quality management or six sigma initiatives and generally helping to improve processes - Exploring a range of solutions to a problem and piloting them in a controlled way before selecting one for implementation - Avoiding wasting of resources from rolling out an ineffective solution or an enterprise-wide scale

One of management's most important challenges is to motivate employees and build their whole-hearted commitment. An effective appraisal and reward system for employee behavior and accomplishments is part of this task. Define performance appraisal and performance measure:

Performance Appraisal: Supervisory or peer analysis of work performance. May be made in connection with wage and salary review, promotion, transfer, or employee training. Performance Measure: In a performance measurement system, the actual value measured for the criterion. Syn: performance measurement. See: performance criterion, performance measurement system, performance standard.

What 4 types of variance are used to measure/control operations?

Price variance, quantity variance, labor variance, overhead variance. Variance = actual - standard Other important terms: - Standard costs: The target costs of an operation, process, or product including direct material, direct labor, and overhead charges. - Quality costs: The overall costs associated with prevention activities and the improvement of quality throughout the firm before, during, and after production of a product. These costs fall into four recognized categories: internal failure costs, external failure costs, appraisal costs, and prevention costs. Internal failure costs relate to problems before the product reaches the customer. These usually include rework, scrap, downgrades, reinspection, retest, and process losses. External failure costs relate to problems found after the product reaches the customer. These usually include such costs as warranty and returns. Appraisal costs are associated with the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, and checking time. Prevention costs are those caused by improvement activities that focus on reducing failure and appraisal costs. Typical costs include education, quality training, and supplier certification. See: cost of poor quality. - Cost center: The smallest segment of an organization, typically a department, for which costs are collected and formally reported. The criteria in defining cost centers are that the cost be significant and that the area of responsibility be clearly defined. A cost center is not necessarily identical to a work center; normally, a cost center encompasses more than one work center, but this may not always be the case. - Labor standard: Under normal conditions, the quantity of worker minutes necessary to finish a product or process.

Review the following process capability analysis terms as well as what process capability analysis is used for:

Process Capability: The ability of the process to produce parts that conform to (engineering) specifications. Process capability relates to the inherent variability of a process that is in a state of statistical control. See: Cp, Cpk, process capability analysis. Process Capability Index: The value of the tolerance specified for the characteristic divided by the process capability. There are several types of process capability indices, including the widely used Cpk and Cp. Cp: A widely used process capability index. It is calculated by dividing the difference between the upper specification limit (USL) and the lower specification limit (LSL) by 6 times the standard deviation (s) Cpk: An index method of the variability of a process. A widely used process capability index. It is expressed as: (m - nearer specification limit) / 3s where m is the mean and s is the standard deviation. Process Capability Analysis: A procedure to estimate the parameters defining a process. The mean and standard deviation of the process are estimated and compared to the specifications, if known. This comparison is the basis for calculating capability indexes. In addition, the form of the relative frequency distribution of the characteristic of interest may be estimated. Syn: capability study. See: process capability. PCA is used for: - Predicting the extent of variability that processes will exhibit, providing important information on realistic specification limits - Choosing the most appropriate process for tolerances to be met - Providing a quantified basis for establishing a schedule of periodic process control checks and readjustments - Assigning machines to classes of work for which they are best suited - Testing theories for causes of defects during quality improvement programs - Serving as a basis for specifying the quality performance requirements for purchased machines - Planning the interrelationship of sequential processes

From high variety and low volume to high volume and low variety, list the process layouts, types, and environments:

Process Layouts: Fixed Position, Functional, Cellular, Product-Based Process Types: Project, Work Center, Batch, Line, Continuous Environments: ETO, MTO, ATO, MTS

What are the 4 stages of the quality planning circle?

Product Definition Product Design Product Manufacturing Product Consumption (use)

Describe a pull system by listing the material and information flows, as well as the execution

Pull System: 1) In production, the production of items only as demanded for use or to replace those taken for use. See: pull signal. 2) In material control, the withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user. 3) In distribution, a system for replenishing field warehouse inventories where replenishment decisions are made at the field warehouse itself, not at the central warehouse or plant. Pull Signal: Any signal that indicates when to produce or transport items in a pull replenishment system. For example, in just-in-time production control systems, a kanban card is used as the pull signal to replenish parts to the using operation. See: pull system. Material flows top to bottom, information flow bottom up: - Part A Manufacturer - Company 1 National DC - Company 1 Regional DC - Company 1 Dealer Execution: - Mixed model scheduling: The process of developing one or more schedules to enable mixed-model production. The goal is to achieve a day's production each day. See: mixed-model production. -Rate Based Scheduling: A method for scheduling and producing based on a periodic rate (e.g., daily, weekly, monthly). This method has traditionally been applied to high-volume and process industries. The concept has also been applied within job shops using cellular layouts and mixed-model level schedules where the production rate is matched to the selling rate. -Synchronization: A pull-type production control system that is based on setting production rates and feeding work into production to meet the planned rates, then monitoring and controlling production. -Line Balancing: 1) The balancing of the assignment of the tasks to workstations in a manner that minimizes the number of workstations and minimizes the total amount of idle time at all stations for a given output level. In balancing these tasks, the specified time requirement per unit of product for each task and its sequential relationship with the other tasks must be considered. See: uniform plant loading. 2) A technique for determining the product mix that can be run down an assembly line to provide a fairly consistent flow of work through that assembly line at the planned line rate. -Constrained resources:

After MRP, how do purchasing and PAC plan and execute materials?

Purchasing is responsible for establishing and controlling the flow of materials into the facility Once the raw materials are in the facility, production activity control (PAC) is responsible for establishing and controlling the flow of work through the facility The planning horizon for PADC is generally very short as compared to other processes and the level of detail needed is high

Describe the philosophy of the Juran Trilogy and the 3 prongs it consists of

Quality should remain a hall mark of the organization's products and services. It is not an added value. It is an essential requirement. Also known as the quality trilogy. Consists of: - Quality Planning: Developing the products and processes required to meet customer needs. Defining customers, products, processes, services, and system requirements to develop it. - Quality Improvement: achieving unprecedented levels of performance. Repairing, refining, renovating, and re-inventing. - Quality Control: meeting product and process goals. Determining what needs to be measured. Setting performance goal. Measure actual performance. Take action on gap

Describe what manufacturing process layout is

Refers to the arrangement of the machines, departments, workstations, storage areas, aisles, an common areas in a facility Fixed-Position, Functional, Cellular, Product-Based

Worker self-control requires the organization to communicate and provide employees (and managers) w/ knowledge of their specific functions, as it relates to responsibilities, accountability, and adjust. Describe these three characteristics:

Responsibilities: what are they supposed to do Accountability: How are they supposed to do it Adjust: Prevent Errors

Describe Kanban Systems:

Responsible not only for implementing the production schedule, but also for facilitating the continuous improvement of execution and control. A means of controlling WIP on the factory floor - Authorizes production at process upstream from the pace maker process - Pull parts through upstream processes to the pacemaker based on the production schedule - Establish the number of parts containers between processes on the shop floor - Use visual controls in a fast throughput environment Visual Control: The control of authorized levels of activities and inventories in a way that is instantly and visibly obvious. A type of activity and inventory control used in a workplace organization where everything has an assigned place and is in its place. Move Card: -In a just-in-time context, a card or other signal indicating that a specific number of units of a particular item are to be taken from a source (usually an outbound stockpoint) and taken to a point of use (usually an inbound stockpoint). It authorizes the movement of one part number between a single pair of work centers. The card circulates between the outbound stockpoint of the supplying work center and the inbound stockpoint of the using work center. Syn: move signal, conveyance card. See: kanban. Production Card: In a just-in-time context, a card or other signal for indicating that items should be made for use or that some items removed from pipeline stock should be replaced. See: kanban. Two-Card Kanban: A kanban system where a move card and production card are employed. The move card authorizes the movement of a specific number of parts from a source to a point of use. The move card is attached to the standard container of parts during movement of the parts to the point of use. The production card authorizes the production of a given number of parts for use or replenishment

What 5 things must be done to manage the TOC schedule?

Schedule the drum Exploit the drum Material release - rope Proactive measurement of buffers Elevate the drum

What is Drum-Buffer-Rope Scheduling

Scheduling system for the theory of constraints Goal: To move material through work centers at the pace of the bottleneck and to keep the bottleneck work center supplied with WIP at all times to maximize throughput Assumptions: - The MPS should be developed so that it is within the constraints of the system (drum) - The throughput of the system must be protected through time buffers at critical points of the system (buffer) - The protection at each resource should be linked to the drum beat (rope)

What 3 activities make up the PAC cycle?

Scheduling, implementation, capacity control

Job sequencing consists of priority rules and dispatching rules. Define sequencing, job sequencing rules, dispatching, and dispatching rules

Sequencing: Determining the order in which a manufacturing facility is to process a number of different jobs in order to achieve certain objectives. Job Sequencing Rules: A set of priorities and conditions that specify the order in which jobs are processed because of scarce resources. Dispatching: The selecting and sequencing of available jobs to be run at individual workstations and the assignment of those jobs to workers. Dispatching Rules: The logic used to assign priorities to jobs at a work center. Priority Rules: Simple heuristics used to select the order in which jobs will be processed.

Describe Heijunka:

Serves as a bridge from scheduling to control of production. It creates the kind of production schedule that best suit production using the lean system In heijunka or mixed-model scheduling, volume and mix are distributed evenly overtime, with the following beneficial results: - Shorter manufacturing lead times - Lower WIP and FG Inventory - Avoidance of peaks and valleys in operator workload - Basis for level of standardized work for operators

Six sigma, six sigma quality, lean six sigma

Six sigma: A methodology that furnishes tools for the improvement of business processes. The intent is to decrease process variation and improve product quality. Six Sigma Quality: -The six sigma approach is a set of concepts and practices that focus on reducing variability in processes and reducing deficiencies in the product. Important elements are (1) producing only 3.4 defects for every one million opportunities or operations, and (2) process improvement initiatives striving for six sigma-level performance. Six sigma is a business process that permits organizations to improve bottom-line performance, creating and monitoring business activities to reduce waste and resource requirements while increasing customer satisfaction. Lean six sigma: A methodology that combines the improvement concepts of lean and six sigma. It uses the seven wastes of lean and the DMAIC process from six sigma, and awards recognition of competence through judo-style belts.

Define the 7 wastes

Waste of overproduction: Making more components or finished goods than required Waste of waiting: Queuing delays Waste of transportation: Excess or unneeded movement Waste of stocks: Inventory not needed to fill orders; keeping of unnecessary raw materials, parts, and WIP Waste of motion: Wasted operator time or effort, action that add no value Waste of making defects: Product or service not meeting specifications Waste of processing itself: Unnecessary or inefficient steps in a process, doing more than customer requires

Skill Variety, autonomy, task identity, and task significance are 4 characteristics related to job enlargement and job enrichment. Explain the actions to allow workers to benefit from these characteristics

Skill Variety: Combine sequential tasks into larger work units. Worker performs more tasks and uses more skills in producing a product (example of enrichment though horizontal job enlargement) Skill Autonomy: Workers participate in deciding how to do a job because they are closest to the process. They are decision makers as well as producers (which involves enrichment through vertical job enlargement) Task identity: Work is assigned to small teams to assemble a product, such as a mother vehicle, from start to finish. Workers thus see and identify strongly with the finished product Task significance: Workers have authority to communicate directly with customers on production issues

What is meant by small group improvement activity and quality circle?

Small Group Improvement Activity: An organizational technique for involving employees in continuous improvement activities. See: quality circle. Quality Circle: A small group of people who normally work as a unit and meet frequently to uncover and solve problems concerning the quality of items produced, process capability, or process control. Syn: quality control circle. See: small group improvement activity.

What are the 5 S's and what are the goals of a 5S program?

Sort: Separate needed items from unneeded ones and remove the latter Simplify: Neatly arrange items for use Scrub: Clean up the work area Standardize: to sort, simplify, and scrub daily Sustain: To always follow the first four S's Goal: Reduce waste, reduce variation, improve productivity

What are the 5 categories of functional performance objectives?

Speed Dependability Flexibility Quality Cost

Review the following terms related to determining variance and conformance:

Statistical Process Control: The application of statistical techniques to monitor and adjust an operation. Often used interchangeably with statistical quality control, although statistical quality control includes acceptance sampling as well as statistical process control. Conformance: An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation. Variance: 1) The difference between the expected (budgeted or planned) value and the actual. 2) In statistics, a measurement of dispersion of data. See: estimate of error. Common-cause (random cause): -Causes of variation that are inherent in a process over time. They affect every outcome of the process and everyone working in the process. Syn: random cause. See: assignable cause, assignable variation, common cause variability. Special Cause (Assignable Cause): A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation. Syn: special cause. See: common causes, assignable variation. Control Chart: A graphic comparison of process performance data with predetermined computed control limits. The process performance data usually consists of groups of measurements selected in the regular sequence of production that preserve the order. The primary use of control charts is to detect assignable causes of variation in the process as opposed to random variations. The control chart is one of the seven tools of quality. Syn: process control chart. Control Limit: A statistically determined line on a control chart (upper control limit or lower control limit). If a value occurs outside this limit, the process is deemed to be out of control. X-bar chart (average) R-chart (range) P-Chart (percentage) Using SPC is a strategic advantage for an organization

Define statistical quality control (SQC) as well as explain attribute sampling and variable sampling:

Statistical Quality Control (SQC): The application of statistical techniques to control quality. Includes acceptance sampling as well as statistical process control, but is often used interchangeable with statistical process control Attribute Sampling: 1.) Take a sample of a specified quality characteristic for each unit. Each unit is classified as acceptable or defective 2.) Summarize these into a simple statistic, such as sample average 3.) Compare the observed values to the allowable standard values defined in the quality plan 4.) Make a decision to accept or reject the lot Variable Sampling: 1.) Take a sample and a measurement of a specified quality characteristic for each unit 2.) Summarize these into a simple statistic, such as a sample average 3.) Compare the observed values to the allowable standards defined in the quality plan 4.) Make a decision to accept or reject the lot

What is the difference between the strategic plan and the operational plan?

Strategic plan: Sets a direction for the organization, devising goals, and objectives and identifying a range of strategies so the organization can achieve its goals. Operational plan: Presents highly detailed information specifically to direct people to perform day-to-day tasks

What effects are associated with lean scheduling?

Sufficient volume in repetitive process Production rate goals met Reduction in work-in-process Level production schedules Heijunka/mixed-model production (Heijunka: In just-in-time philosophy, an approach to level production throughout the supply chain to match the planned rate of end product sales.)

Define takt time (also know formula), cycle time, pace maker, and store

Take Time: Pace of production is synchronized to the pace of sales (Available Production Time / Rate of Customer Demand) Cycle time: the time between the completion of two discrete units within production. In a perfect world, takt time and cycle time are equal Pace Maker: -In lean, the resource that is scheduled based on the customer demand rate for that specific value stream; this resource performs an operation or process that governs the flow of materials along the value stream. Its purpose is to maintain a smooth flow through the manufacturing plant. A larger buffer is provided for the pacemaker than other resources so that it can maintain continuous operation. See: constraint. Store: A storage point located upstream of a work station, intended to make it easier to see customer requirements.

Continuous Process Control

The use of transducers (sensors) to monitor a process and make automatic changes in operations through the design of appropriate feedback control loops. Although such devices have historically been mechanical or electromechanical, there is now widespread use of microcomputers and centralized control. Used in PAC

Define Total Productive Maintenance (TPM) and Overall Equipment Effectiveness (OEE)

Total Productive Maintenance: Preventive maintenance plus continuing efforts to adapt, modify, and refine equipment to increase flexibility, reduce material handling, and promote continuous flows. It is operator-oriented maintenance with the involvement of all qualified employees in all maintenance activities. Syn: total preventive maintenance. Overall Equipment Effectiveness (OEE): Measuring the effectiveness of all of the equipment of a company based on usage, performance, and production quality.

How are quality management tools used?

Used daily to carry out the 3 universal processes of the Juran trilogy: quality planning, quality improvement, and quality control

List the lean scheduling techniques to improve flow:

Using control limits Not overreacting to demand changes (use takt time) Prioritizing regular orders Using ATP logic Moving to "milk-run" deliveries

Important to have a shop floor system, lean or MRP, that fits the company. Describe when it is better to use each.

Whether lean or MRP is used, depends on market-facing and manufacturing-related characteristics. MRP-Based: Most appropriate when a wide variety of custom products is produced in low unit volumes Lean-Based: Most appropriate for standard products produced in a limited variety and high volume

Effective selection and training can ensure that an organization is filled with self-controlled and like-minded employees who share the same values and goals as the organization. List and describe some important concepts related to this topic such as: worker self-control, job enlargement, job enrichment, and cross-functional teams

Worker self-control: - Workers can be held responsible for quality - Quality problems are worker controllable Job Enlargement: - Expanding the number of tasks a worker performs in producing a product Job Enrichment: - Having more control over how tasks are performed Cross-functional training: - Important to success and team performance. Means improving employee proficiency levels in roles outside their current responsibilities. Results in: Cost Savings, Replacement Workers, Employee Motivation