Brining a Product to the Market
Olivier Scalabre
Advanced Robots, Additive Manufacturing, Horiztonal and Vertical Integration, Augmented Relaity, Cloud and Cyber Security, Simulation, Industrial Internet, Big Data and Analytics
production and operations management
the creation of products and services •Production turns inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services. •Managing this conversion process is the role of operations management.
What are the three phases of Production Planning
1.Long-term planning (3-5-year timeframe): focuses on which goods to produce, how many to produce, and where they should be produced. 2.Medium-term planning (2-year timeframe): these decisions concern the layout of factory or service facilities, where and how to obtain the resources needed for production, and labor issues. 3.Short-term planning (within 1-year timeframe): converts the broader goals into specific production plans and materials management strategies.
what are the three types of production
1.Mass production 2.Mass customization 3.Customization In addition to production type, operations managers also classify production processes in two ways: 1.How inputs are converted into outputs and 2.The timing of the process.
Four important decisions must be made in production planning:
1.Type of production process that will be used 2.Site selection 3.Facility layout 4.Resource planning
Production Control
At this stage, the decision-making process focuses on controlling quality and costs, scheduling, and the actual day-to-day operations of running a factory or service facility.
Improving Production and Operations
Balancing productivity and quality: To compete effectively in today's business world, companies must keep production costs down while also producing/delivering the high-quality goods and services customers demand. Methods to help meet these challenges include quality-management techniques, lean manufacturing, and technology and automation
The sequence of tasks for a project representing the fastest time possible for project completion
Critical Path
Operations can be categorized into three major types of activities: Design, Management, and _____
Improvement
A quality control method that streamlines production by eliminating steps in the production process that do not add benefits customers want
Lean Manufactoring
Quality Control Methods pt 2
Lean Manufacturing streamlines production by eliminating steps in the production process that do not add benefits customers want. In other words, non-value-added production processes are cut so that the company can concentrate its production and operations resources on items essential to satisfying customers. Just-In-Time (JIT): based on the belief that materials should arrive exactly when they are needed for production, rather than being stored on-site. Manufacturers use computerized systems to determine what parts will be needed and when and then order them from suppliers, so they arrive "just in time." •Under the JIT system, inventory and products are "pulled" through the production process in response to customer demand (so requires close teamwork between vendors and purchasing and production personnel )
Production Location
Location must be determined early in production and operations planningWhy does it matter? •The facility's location affects operating and shipping costs and, ultimately, the price of the product or service and the company's ability to compete. •Mistakes made at this stage can be expensive, because moving a factory or service facility once production begins is difficult and costly. •Companies must weigh a number of factors to make the right decision: •Availability of production inputs •Marketing factors •Manufacturing environment •Local incentives •International location considerations
Resource Planning
Make-or-Buy Decision: decision whether a company will make its own production materials or buy them from outside sources (outsourcing) Inventory Management: deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it Computerized Resource Planning: computerized systems used by many manufacturing companies to control the flow of resources and inventory Supply-Chain Management: focuses on smoothing transitions along the supply chain, with the ultimate goal of satisfying customers with quality products and services
Tech and Automation
Many technologies are automating manufacturing tasks, such as: •Computer-Aided Design and Manufacturing Systems •Computer-Aided Design (CAD): computers are used to design and test new products and modify existing ones. Engineers can analyze the products, make changes, and test prototypes before manufacturing a single item •Computer-Aided Manufacturing (CAM): computers develop and control the production process (they analyze the steps required to make the product, then automatically send instructions to the machines that do the work) •Robotics: technology involved in designing, constructing, and operating robots that operate with little to no human intervention •Adaptable Factories: •Flexible Manufacturing Systems (FMS): automates a factory by blending computers, robots, machine tools, and materials-and-parts-handling machinery into an integrated system •Computer-Integrated Manufacturing Systems (CIM): combines computerized manufacturing processes (such as robots and flexible manufacturing systems) with other computerized systems that control design, inventory, production, and purchasing
Production type in which goods are produced using mass-production techniques up to a point. At that point, the product or service is custom-tailored to the needs or desires of individual customers.
Mass Customization
OTIF
On Time In Full (also known as DIFOT: Delivered In Full, On Time) is a supply chain KPI measuring if: •The expected product has been delivered. •The ordered quantity has been delivered .•The quality is conform to the required level. •The product has been delivered at the place asked by the customer and on time.
Term referring to management of the conversion process of inputs to outputs
Operations Management
Quality Management
Quality:•Consumer perspective: how well a product serves its purpose. •Manufacturer perspective: the degree to which the product conforms to a set of predetermined standards. Quality control: involves creating quality standards, producing goods that meet them, and measuring finished goods and services against them. •Requires a company-wide dedication to managing and working in a way that builds excellence into every facet of operations (not saved for end-of-the-line inspections) - top management must foster a company-wide culture dedicated to producing quality
Improving Production and operations
The final stage of operations management focuses on developing more efficient methods of producing the firm's goods or services.
Production planning
The first decisions facing operations managers come at the planning stage. At this stage, managers decide where, when, and how production will occur. They determine site locations and obtain the necessary resources.
Quality control methods
Total Quality Management (TQM): emphasizes the use of quality principles in all aspects of a company's production and operations. It recognizes that all employees involved with bringing a product or service to customers—marketing, purchasing, accounting, shipping, manufacturing—contribute to its quality. •TQM focuses on continuous improvement, a commitment to constantly seek better ways of doing things in order to achieve greater efficiency and improve quality. Company-wide teams work together to prevent problems and systematically improve key processes instead of troubleshooting problems only as they arise. Six Sigma: company-wide, quality-control program method that focuses on measuring the number of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible (goal = every process produces no more than 3.4 defects per million). •A key process of Six Sigma is called DMAIC: Define, Measure, Analyze, Improve, and Control.
What is production planning?
allows the company to consider the competitive environment and its own strategic goals to find the best production methods. •The challenge: good production planning has to balance goals that may conflict, such as providing high-quality service while keeping operating costs low or keeping profits high while maintaining adequate inventories of finished products. Sometimes accomplishing all these goals is difficult.
Customization
company produces goods or services one at a time according to the specific needs or wants of individual customers (opposite of mass production). •Different from mass customization, as each product or service produced is unique. •Example: a print shop may handle a variety of projects, including newsletters, brochures, stationery, and reports. Each print job varies in quantity, type of printing process, binding, color of ink, and type of paper. •Service example: personal training or nutrition coaching
Mass Customization
goods are produced using mass-production techniques, but only up to a point. At that point, the product or service is custom-tailored to the needs or desires of individual customers. •Allows a customer to design certain features of a product while still keeping costs closer to that of mass-produced products. •Example: modular homes - allow customers to make changes to the base home package
Mass Production
manufacturing many identical goods at once (e.g., canned goods, over-the-counter drugs, and household appliances) •Emphasis is on keeping manufacturing costs low by producing uniform products using repetitive and standardized processes •Born out of Industrial Revolution (e.g., Henry Ford's Model T)
Supply Chain Management
the entire sequence of securing inputs, producing goods, and delivering goods to customers. •If any links in this process are weak, chances are customers—the end point of the chain—will feel it •Companies need contingency plans for supply-chain disruptions (avoid major losses with a back-up plan to determine where they'll get the resource if needed) •Effective supply-chain strategies and technology improves efficiency and reduces costs (can track inventory, manage goods, automate more processes and save time/money) •Important to develop tight bonds with suppliers (e.g., reducing the number of suppliers used and asking them to offer more services or better prices in return for an ongoing relationship) •Suppliers play an important role in supporting the operations of their customers: in meeting high quality standards, offering suggestions that can help reduce production costs, and even contributing to the design of new products.
Production Planning: Production Process
the way a good or service is created•Need to determine which type of production process best fits with the type of good or service being produced, the company goals and customer demand.
Recent Trends in Operations Management
•Business Process Reengineering (BPR) •Business Process Management (BPM) •Lean and agile manufacturing •Six Sigma •Reconfigurable manufacturing system (RMS) •Employee involvement •Sustainability •Behavioral operations management
Many factors have necessitated innovative approaches in operations management. For example:
•Ever-shrinking product lifecycles •New trends on the labor market •Environmental concerns •Digitalization of the processes
Production and Operations Control
•Often involves critical path analyses and updating processes, as needed to improve efficiencies •Critical Path Method (CPM): •Manager identifies all of the activities required to complete the project, the relationships between these activities, and the order in which they need to be completed. •Manager develops a diagram that uses arrows to show how the tasks are dependent on each other. •The longest path through these linked activities is called the critical path. If the tasks on the critical path are not completed on time, the entire project will fall behind schedule.
Three main types of facility layouts
•Process layout: workers are grouped by task and the products pass from one workstation to another •Product layout: workstations or departments are arranged in a line with products moving along the line. •Fixed Position layout: the product or service stays in one place while workers and machinery move to it
What are the core concepts of bringing a product into a market?
•Production Planning •Production Control •Quality improvement •Technology/Automation
