Review for Exam 1 This exam will be administered Monday, February 24, 2003, beginning at 7:45 a.m.

Review for Exam 1Review for Exam 1

This exam will be This exam will be administered Monday, administered Monday, February 24, 2003, beginning February 24, 2003, beginning at 7:45 a.m.at 7:45 a.m.

Exam StructureExam Structure 30-45 multiple choice worth 50%30-45 multiple choice worth 50% 4-5 problems worth 50%4-5 problems worth 50% Bring: pencils, erasure, calculator, Bring: pencils, erasure, calculator,

orange scantron sheetorange scantron sheet Exam is closed-notes, closed-Exam is closed-notes, closed-

books, closed-neighborsbooks, closed-neighbors

Chapters coveredChapters covered 1, 2, 3, 4, 7, first half of 12, 14, 151, 2, 3, 4, 7, first half of 12, 14, 15

ProblemsProblems Calculate product yieldCalculate product yield Calculate product costCalculate product cost

• Like problem 14.4 in your HWLike problem 14.4 in your HW Calculate break-even volume and Calculate break-even volume and

indifference pointsindifference points• Like problem 4.4 in your HWLike problem 4.4 in your HW

More problemsMore problems P-chart//R-chart//xbar chartP-chart//R-chart//xbar chart

• Like problems 15.2 and 15.6 in your Like problems 15.2 and 15.6 in your HWHW

Reliability calculationReliability calculation• Like problem 3.8 in your HWLike problem 3.8 in your HW

Attribute weighting (to choose a Attribute weighting (to choose a location)location)• Like example in class todayLike example in class today

Chapter 1Chapter 1

Name some activities of operations Name some activities of operations managersmanagers

Organizing work, selecting processes, Organizing work, selecting processes, arranging layouts, locating facilities, arranging layouts, locating facilities, designing jobs, measuring performance, designing jobs, measuring performance, controlling quality, scheduling work, controlling quality, scheduling work, managing inventory, planning productionmanaging inventory, planning production

Is the Japanese success in Manufacturing Is the Japanese success in Manufacturing a cultural one?a cultural one?• No. Witness what Matsushita did with QuasarNo. Witness what Matsushita did with Quasar

Activities in operations Activities in operations Management include all Management include all but….but…. Organizing workOrganizing work Controlling qualityControlling quality Selecting processesSelecting processes Establishing demandEstablishing demand Scheduling workScheduling work

Operations at a BankOperations at a Bank Processing fundsProcessing funds Providing checksProviding checks Cashing checksCashing checks Preparing monthly statementsPreparing monthly statements Reconciling statementsReconciling statements Approving loansApproving loans Loaning moneyLoaning money Tracking loan paymentsTracking loan payments

Operations at a retail storeOperations at a retail store Purchasing goodsPurchasing goods Stocking goodsStocking goods Selling goodsSelling goods Tracking inventoryTracking inventory Scheduling workersScheduling workers Laying out the storeLaying out the store Locating the storeLocating the store Forecasting demandForecasting demand

Operations at hospitalOperations at hospital Preparing roomsPreparing rooms Scheduling doctors, nurses, operating Scheduling doctors, nurses, operating

roomsrooms Processing paperworkProcessing paperwork Ordering suppliesOrdering supplies Billing customersBilling customers Caring for patientsCaring for patients Maintaining the facilityMaintaining the facility

Operations at a cable TV Operations at a cable TV companycompany Taking ordersTaking orders Installing equipmentInstalling equipment Maintaining equipmentMaintaining equipment Staying on the “air”Staying on the “air” Scheduling workScheduling work Processing statements Processing statements Processing paymentsProcessing payments

Evolution of OperationsEvolution of Operations Industrial Revolution—Adam SmithIndustrial Revolution—Adam Smith Scientific management—Frederick TaylorScientific management—Frederick Taylor Human relations—Abraham MaslowHuman relations—Abraham Maslow Management science—Georgge DantzigManagement science—Georgge Dantzig Quality revolution—W. Edwards DemingQuality revolution—W. Edwards Deming Internet—Tim berners LeeInternet—Tim berners Lee

Productivity is what Productivity is what exactly?exactly? Output/InputOutput/Input The most common measure of The most common measure of

competitiveness of a country competitiveness of a country Government reports measure Government reports measure

CHANGES IN PRODUCTIVITY from CHANGES IN PRODUCTIVITY from month to monthmonth to month

Name some trends in OMName some trends in OM Intense CompetitionIntense Competition Global marketsGlobal markets Importance of StrategyImportance of Strategy Product variety and mass customizationProduct variety and mass customization More servicesMore services Emphasis on qualityEmphasis on quality FlexibilityFlexibility Advances in technologyAdvances in technology Worker involvementWorker involvement

Name some barriers to Name some barriers to entry of new enterprisesentry of new enterprises Economies of ScaleEconomies of Scale Access to customers and suppliersAccess to customers and suppliers The capital investment requiredThe capital investment required Learning curvesLearning curves

More Chapter 1More Chapter 1 Would you say that cheap labor rates Would you say that cheap labor rates

are the strongest motivation for plant are the strongest motivation for plant location?location?

Whose hourly wage rates are Whose hourly wage rates are substantially higher than ours?substantially higher than ours?

Operations has been likened to a Operations has been likened to a _____ process_____ process

The purpose is to add _____, more The purpose is to add _____, more ____ than you add cost.____ than you add cost.

Chapter 2--Operations Chapter 2--Operations StrategyStrategy

Primary tasks, core competencies, order Primary tasks, core competencies, order qualifiers--define thesequalifiers--define these

Name four dimensions of competitionName four dimensions of competition Today the focus in not on functions but _____Today the focus in not on functions but _____ Name four PROCESS typesName four PROCESS types

– project, batch, mass production, continuous productionproject, batch, mass production, continuous production Which of these are low-volume, which are Which of these are low-volume, which are

high volumehigh volume

Chapter 2--Operations Chapter 2--Operations StrategyStrategy What is meant by a core What is meant by a core

competencecompetence What is meant byWhat is meant by

• make to ordermake to order• make to stockmake to stock• assemble to stock assemble to stock

Ch 2 - 3© 2000 by Prentice-Hall IncRussell/Taylor Oper Mgt 3/e

Competing On CostCompeting On Cost

Eliminate all wasteEliminate all waste Invest inInvest in

•updated facilities & equipmentupdated facilities & equipment•streamlining operationsstreamlining operations•training & developmenttraining & development


Competing On QualityCompeting On Quality

Please the customerPlease the customer•Understand customer attitudes Understand customer attitudes toward and expectations of quality toward and expectations of quality


Competing On FlexibilityCompeting On Flexibility

Produce wide variety of productsProduce wide variety of products Introduce new productsIntroduce new products Modify existing products quicklyModify existing products quickly Respond to customer needsRespond to customer needs


Competing On SpeedCompeting On Speed

Fast movesFast moves

Fast adaptationsFast adaptations

Tight linkagesTight linkages


Product-Process MatrixProduct-Process MatrixVo

lum

e

LowLow High

High

Projects

Batchproduction

Massproduction

Continuousproduction

Standardization

Chapter 14--Quality Chapter 14--Quality ManagementManagement Be able to calculate Yield and Be able to calculate Yield and

Product costProduct cost• Formulas will be given to youFormulas will be given to you

Chapter 14-Quality GurusChapter 14-Quality Gurus Who gave us PDCA?Who gave us PDCA? What was the name of his mentor?What was the name of his mentor? Who Wrote QUALITY IS FREE?Who Wrote QUALITY IS FREE? Who proposed that TQM was a Who proposed that TQM was a

total commitment among both total commitment among both management and employeesmanagement and employees

TQMTQM Relation to continuous process Relation to continuous process

improvementimprovement Who defines quality??Who defines quality?? Who provides the leadership for Who provides the leadership for

quality?quality? Is quality a strategic issue?Is quality a strategic issue?

Measures of Quality Measures of Quality PerformancePerformance FeaturesFeatures ReliabilityReliability ConformanceConformance DurabilityDurability

TimelinessTimeliness CourtesyCourtesy ConsistencyConsistency AccuracyAccuracy ConvenienceConvenience ResponsivenessResponsiveness CompletenessCompleteness

Ch 3 - 9© 2000 by Prentice-Hall Inc

Russell/Taylor Oper Mgt 3/e

The Meaning of Quality

Quality of Conformance Quality of Design

Producer’s Perspective Consumer’s Perspective

Fitness forConsumer Use

Production Marketing•Conformance to specifications•Cost

•Quality characteristics•Price



Strategic Implications Of Strategic Implications Of TQMTQM Quality is key to effective strategyQuality is key to effective strategy Clear strategic goal, vision, missionClear strategic goal, vision, mission High quality goalsHigh quality goals Operational plans & policiesOperational plans & policies Feedback mechanismFeedback mechanism Strong leadershipStrong leadership



Cost Of QualityCost Of Quality

Cost of achieving good qualityCost of achieving good quality•PreventionPrevention•AppraisalAppraisal

Cost of poor qualityCost of poor quality•Internal failure costsInternal failure costs•External failure costsExternal failure costs



Seven Quality Control Seven Quality Control ToolsTools1. Pareto analysis1. Pareto analysis2. Flowcharts2. Flowcharts3. Check sheets3. Check sheets4. Histograms4. Histograms5. Scatter diagrams5. Scatter diagrams6. Control charts6. Control charts7. Fishbone diagram7. Fishbone diagram

Chapter 15--Statistical Chapter 15--Statistical Process ControlProcess Control Be able to construct p-charts, c-Be able to construct p-charts, c-

chartscharts• For attributesFor attributes

Be able to construct xbar charts, R-Be able to construct xbar charts, R-chartscharts• For variablesFor variables



VariationVariation Common CausesCommon Causes

•Variation inherent in a processVariation inherent in a process•Can be eliminated only through Can be eliminated only through improvements in the systemimprovements in the system

Special CausesSpecial Causes•Variation due to identifiable factorsVariation due to identifiable factors•Can be modified through operator or Can be modified through operator or management actionmanagement action



Types Of DataTypes Of Data

Attribute dataAttribute data– Product characteristic evaluated with a Product characteristic evaluated with a

discrete choicediscrete choice– Good/bad, yes/noGood/bad, yes/no

Variable dataVariable data– Product characteristic that can be Product characteristic that can be

measuredmeasured– Length, size, weight, height, time, velocityLength, size, weight, height, time, velocity



Control ChartsControl Charts

Graph establishing process control Graph establishing process control limitslimits

Charts for variablesCharts for variables•Mean (X-bar), Range (R)Mean (X-bar), Range (R)

Charts for attributesCharts for attributes•p and cp and c

Chapter 3--Product and Chapter 3--Product and Service DesignService Design Design for manufactureDesign for manufacture Design for assemblyDesign for assembly Design for environmentDesign for environment Design for maintenanceDesign for maintenance



Distribution Of Design Distribution Of Design ChangesChanges

21 12 33 ProductionbeginsMonths

Num

ber o

f Des

ign

Cha

nges

Company 2

90% of Totalchangescomplete

Company 1



Computing ReliabilityComputing Reliability

0.90 0.90

.95

.90

0.90 x 0.90 = 0.81

0.95 + 0.90(1-0.95) = 0.995

Components in series

Components in parallel

A technique for improving A technique for improving the design of a product the design of a product vis-à-visvis-à-vis Customer requirementsCustomer requirements Competitions products, is______Competitions products, is______



House Of Quality House Of Quality

6. Technical assessment and target values

1. Customerrequirements

4. Relationship matrix

3. Productcharacteristics

Importance

2. Competitiveassessment

5. Tradeoffmatrix

Measures of Design Measures of Design Quality includeQuality include Number of component parts and product Number of component parts and product

optionsoptions % of standard parts% of standard parts Use of existing manufacturing processesUse of existing manufacturing processes Cost of first production runCost of first production run Cost of engineering changes during the first Cost of engineering changes during the first

six monthssix months Total product costTotal product cost Total product salesTotal product sales Sustainable developmentSustainable development



Concurrent DesignConcurrent Design

Customers

Marketing

Design

Engineering

Suppliers Production



DFM GuidelinesDFM Guidelines

1. Minimize the number of parts1. Minimize the number of parts2. Develop a modular design2. Develop a modular design3. Design parts for multi-use3. Design parts for multi-use4. Avoid separate fasteners4. Avoid separate fasteners5. Eliminate adjustments5. Eliminate adjustments6. Design for top-down assembly6. Design for top-down assembly

Chapter 4—Processes & Chapter 4—Processes & TechnologiesTechnologies Michael Hammer—eliminate Michael Hammer—eliminate

_______??_______?? Make work _____ againMake work _____ again Make processes _______Make processes _______



Process Flowchart Process Flowchart SymbolsSymbols

Operations

Inspection

Transportation

Delay

Storage

D

The focus of operations The focus of operations today is not on functions, today is not on functions, but _____but _____

Which of the following Which of the following refers to dismantling a refers to dismantling a competitior’s competitior’s product in order to improve one’s product in order to improve one’s

own productown product

Cluster chartingCluster charting BenchmarkingBenchmarking Reverse engineeringReverse engineering Concurrent designConcurrent design

BPR VS PROCESS BPR VS PROCESS IMPROVEMENTIMPROVEMENT

IMPROVEMENTIMPROVEMENT BUS PROCESS BUS PROCESS REENGREENG

Level of change Level of change IncrementalIncremental Radical Radical Starting pointStarting point Existing processExisting process Clean slate Clean slate Frequency of changeFrequency of change ContinuousContinuous One-time One-time Time requiredTime required shortshort long long ParticipationParticipation bottom-upbottom-up top-down top-down Typical scopeTypical scope NarrowNarrow Broad Broad RiskRisk ModerateModerate High High Primary enablerPrimary enabler Statistical controlStatistical control Information Information

technology technology Type of changeType of change culturalcultural cultural/structural cultural/structural

Disadvantages of handoffsDisadvantages of handoffs allow for inventory buildupallow for inventory buildup add delays--transit times, wait add delays--transit times, wait

timestimes require more peoplerequire more people make work too simple and boringmake work too simple and boring require supervisionrequire supervision

What are byproducts of What are byproducts of shortened cycle times?shortened cycle times?

Re-engineered Computer Re-engineered Computer ArchitecturesArchitectures Started with Started with

mainframe/glasshousemainframe/glasshouse Migrated to client/serverMigrated to client/server Evolved to N-tier distributedEvolved to N-tier distributed

Why did such re-Why did such re-engineering occur?engineering occur? There was no data integrationThere was no data integration MIPs on mainframes were hugely MIPs on mainframes were hugely

expensive and very much in demandexpensive and very much in demand MIPs on PCs were idle 95% of the time MIPs on PCs were idle 95% of the time

and extremely cheapand extremely cheap Backlogs for MIS shops were at 36 monthsBacklogs for MIS shops were at 36 months Developing new applications were slow Developing new applications were slow

and expensiveand expensive

Distributed architectures Distributed architectures solved these problemssolved these problems Data resides behind a single Data resides behind a single

database enginedatabase engine



Process PlansProcess Plans

BlueprintsBlueprints Bill of materialBill of material Assembly diagramAssembly diagram Assembly chart / product Assembly chart / product structure diagramstructure diagram Operations process chartOperations process chart Routing sheetRouting sheet



What is this?What is this?

No.No. Part No.Part No. Part namePart name11 5129251292 Outlet endOutlet end22 5128451284 HandleHandle33 5204352043 SwitchSwitch44 5157651576 Electric cordElectric cord55 5126551265 Rear housingRear housing66 5126851268 Motor mounting Motor mounting plateplate



What is this?What is this?

Upholstery tool

Crevice tool Hand-vac Dusting

tool Package

Packaged Hand-vac

Forward housing

assembly

Screw & lock washer

assembly

Rear housing

assembly



What is this?What is this?Part namePart name Table legTable legPart no.Part no. 24102410UsageUsage TableTableAssembly No.Assembly No. 437437

Oper No.Oper No. DescriptionDescription Dept.Dept. MachineMachineTimeTimeToolsTools

1010 Saw to rough lengthSaw to rough length 0410412020 Plane to sizePlane to size 0430433030 Saw to finished lengthSaw to finished length 0410414040 Measure dimensionsMeasure dimensions 0510515050 SandSand 052052



Symbols for what kind of Symbols for what kind of chart?chart?

Operations

Inspection

Transportation

Delay

Storage

D

Chapter 7--Supply Chain Chapter 7--Supply Chain ManagementManagement Plants/warehouses/distribution/Plants/warehouses/distribution/

information infrastructureinformation infrastructure Most of America’s product gets Most of America’s product gets

moved by _____ (air, water, rail, moved by _____ (air, water, rail, truck, pipeline).truck, pipeline).

What is COVISINT??What is COVISINT?? What benefits accrue from SCM?What benefits accrue from SCM?

What’s new and exciting What’s new and exciting in SCM??in SCM?? Information TechnologyInformation Technology

• Has changed everythingHas changed everything• SCM Software modulesSCM Software modules

– I2 TechnologiesI2 Technologies

Review for Exam 1 This exam will be administered Monday, February 24, 2003, beginning at 7:45 a.m.

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Transcript of Review for Exam 1 This exam will be administered Monday, February 24, 2003, beginning at 7:45 a.m.