MGMT 309 Chapter 20
What other decisions must be made
level of quality desired, optimal cost of each product or service, exactly how much
Most basic problems of designing operation systems
product-service mix, capacity, facilities
4 basic kinds of inventory
raw materials, work in progress, finished goods, and in transit inventories
Woodward's 3 forms of technology
unit or small batch large batch or mass production continuous process
Flexible manufacturing systems
usually have robotic work units or workstations, assembly lines, and robotic carts or some other form of computer controlled transport system to move material as needed from one part of the system to another
Disadvtgs of computerized systems
-CIM are so expensive they raise break even point -CAD are too complex to be completely reliable -Generate resistence
Six Sigma
-Dvlped by Motorola -Attempts to eliminate mistakes by making corrections until errors disappear
Cellular layout
-New -Physical configuration of facilities used when families of products can follow similar flow paths
Importance of Productivity
-Primary determinant of profitability -Partially determines std of living -US has one of the highest levels of productivity worldwide
Strategic Componenet
-Starting point of TQM -Org culture must change to recognize quality is an objective that be must pursued -Commitment from top mgmt
Total Quality Mgmt (TGM; quality assurance)
-Strategic commitment by top mgmt to change its whole approach to business in order to make quality a guiding factor in everything it does -Most pervasive approach
Partial productivity ratio
-Uses only one category of resource -Not necessary to transform the units of input into some other unit -Provides managers w specific insights into how changing different resource inputs affects productivity
Installing a meaningful quality enhancement program
1. Decreases number of defects 2. Resources dedicated to reworking flamed output will decrease 3. More units produced with fewer resources
8 dimensions of quality
1. Performance: products primary operating characteristic 2. Features: supplements to a products basic functioning characteristics 3. Reliability: probability of not malfunctioning during a specified period 4. Conformance: The degree to which a products design and operating characteristic meet established stds 5. Durability: measure for product life 6. Serviceability: The speed and ease of repair 7. Aesthetics: How a product looks, feels, tastes, and smells 8. Perceived quality: as seen by a customer
Manufacturing
A form of business that combines and transforms resource inputs into tangible outcomes
ISO 9000:2000
A set of quality standards created by the International Organization for Standardization and revised in 2000 -Stds covering product testing, employee training, record keeping, supplier relations and repair policies and procedures
Statistical quality control (SQC)
A set of specific statistical techniques that can be used to monitor quality; included acceptance sampling and in-process sampling
ISO 14000
A set of standards for environmental performance
Computer assisted manufacturing
A technology that relies on computers to design or manufacture products -Especially useful in reorders
Productivity
An economic measure of efficiency that summarizes what is produced relative to resources used to produce it
Just in time (JIT) method
An inventory system that has necessary materials arriving as soon as they are needed so that the production process is not interrupted -First popularized by the Japanese -Reduces org investment in raw materials and storage space
Service organization
An organization that transoms resources into an intangible output and creates time or place utility for customers
Robot
Any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings
Purchasing mgmt (procurement)
Buying materials and resources needed to produce products and services
Computer integrated manufacturing
CAD and CAM are linked together and computer networks automatically adjust machine placements and settings to enhance both the complexity and the flexibility of scheduling
Employee involvement
Critical component in improving quality
Control mechanism
Device that sends instructions to the automatic machine
In transit (pipeline)
Distribute products to customers -Source of control: transportation and distribution control systems
Work in process
Enable overall production to be divided into stages of manageable size -Source of control: shop floor control systems
In process sampling
Evaluates products during production so that needed changes can be made
Product-service mix
How many and what kinds of products or services (or both) to offer
Methods
Improvement of operating systems used by the org during the actual transformation process improves service quality
Materials
Increasing quality requirements they impose on their suppliers as a way of improving the quality of their own products
Technology
Investing in higher grade machines capable of doing jobs more precisely and reliably improves quality
Company productivity
Level of productivity achieved by the an individual company
Inventory control (materials control)
Managing the orgs raw materials, work in process, finished goods and products in transit
Malcolm Baldridge Award
Named after a former secretary of commerce, this prestigious award is given to firms that achieve major quality improvements
What is the core of what orgs do as they add value and create products and services
Operations mgmt
Sensor
Parts of the system that gather info and compare it to preset standards
Fixed-position layout
Physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes
Process layout
Physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products EX: auto shops, health care clinics -Each conversion task centralized in a single dpmt
Product layout
Physical configuration of facilities arranged around the product; used when large quantities of a single product are needed EX: Dell
Total factor productivity
Productivity = Outputs / Inputs -Overall indicator of how well an organization uses all of its resources -Must be expressed in the same terms ($, units, etc)
Unit and individual productivty
Productivity achieved by a unit or dpmt within an org and the level of productivity attained by a single person
Finished goods
Provide ready supply of products on customer demand and enable long, efficient production runs -Source of control: high level production scheduling systems in conjunction with marketing
Raw materials
Provide the materials needed to make the product -Source of control: purchasing models and systems
Acceptance sampling
Sampling finished foods to ensure that quality stds have been met
Outsourcing
Subcontracting services and operations to other firms that can perform them more cheaply or better
Capacity decision is high risk because of the uncertainty of the future
TRUE
Control systems should focus on elements most crucial to goal attainment
TRUE
Different organizations may have different facilities requirements
TRUE
Improved quality lowers cost
TRUE
In the 1970s, manufacturing majorly declined due to foreign competition
TRUE
Managers in service orgs have come to see than many of the tools, techniques, and methods that are used in a factory as useful to a service firm
TRUE
Quality and productivity are related
TRUE
Quality has become one of the most competitive points in business today
TRUE
Strategy affects operations mgmt, and operations mgmt affects strategy
TRUE
To use operations mgmt as control, coordinate it with other functions
TRUE
Use of robotics has steadily increased since then 1980s
TRUE -Welding first seen and most common -Materials handling is a close second
Catalyst for emergence of quality as a mainstream concern was foreign business
TRUE (mostly the Japanese)
Capacity
The amount of products, services or both that can be produced by an organization
Value-Added Analysis
The comprehensive evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers
Layout
The physical configuration of facilities, the arrangement of equipment within facilities, or both
Facilities
The physical locations where products or services are created, stored, and distributed -Dpdt on location and layout
Location
The physical positioning or geographic sit of facilities
Automation
The process of designing work so that it can be completely or almost completely performed by machines -Improves products and fosters innovation -Relies on feedback, info, sensors and a control mechanism -Transition began during WWII (programmable) -More jobs created than lost
Benchmarking
The process of learning how other firms do things in an exceptionally high-quality manner
Supply chain mgmt
The process of managing operations control, resource acquisition and inventory so as to improve overall efficiency and effectiveness
Technology
The set of processes and systems used by organizations to convert resources into products or services
Cycle time
The time needed by the org to accomplish activities such as dvlping, making and distributing products or services
Operations mgmt
The total set of managerial activities used by an org to transform resource inputs into products, services or both
Quality
The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
Computer aided design
The use of computers to design parts and complete products and to stimulate performance so that prototypes need not be constructed
Aggregate productivity
Total level of productivity achieved by a country
Industry productivity
Total productivity achieved by all the firms in a particular industry
Demand
a major consideration in determining demand
Feedback
flow of info from machine back to sensor
