Operations management | My Assignment Tutor

EG7322 Lean EngineeringSession 1: IntroductionMarina MarinelliMEng MSc PhD FHEAm.marinelli@leicester.ac.ukOperations management is the systematic direction and control of theprocesses that transform inputs into outputs.An output is the conceptual description of thetangible or intangible end result of the actof producing through an operations system.This output, or ‘product’ is common todifferentiate into two types: goods andservices.A good is a tangible manufactured outputsuch as a computer, a book or a bicycle.A service is the provision of an intangibleoutput which may be felt, experienced,heard, smelt or appreciated.Equipment, labor, tools, facilities,materials, energy, and informationOperations managers areconcerned with determining whatinputs should go into an operatingsystem and how these inputs canbest be obtained and used tosatisfy the requirements of themarket place.Managers are also responsible forcritical activities such as qualitymanagement and control,capacity planning, materialsmanagement, purchasing, andscheduling.Customers are the ultimate recipients of the provision of a good or serviceby an operations system. They can be close to, or remote from, an operationssystem, but in all cases their demands and needs are the prime inputs for thedesign of an operations system.Supply chain is a set of inter-connected operators that play a role in thecombined manufacture, distribution, and provision of a product or service to afinal customer.The production of outputs, however, is usually not without constraints…Operations managers constantly strive to:• Find ways to produce more outputs with the same quantity of inputs.• Maintain output levels but decrease inputs.In the business world, a universal constraint is the cost of inputs.Why Lean Production?Customers are more powerful than ever before.They have a wealth of choices, unprecedented access to information, anddemand excellent quality at a reasonable price.In such an environment, the only way to improve profit is to reduce cost.WHAT IS LEAN?LEAN IS A MINDSETIt is not a ‘quick fix’It is a philosophy – a way of lifeObjectiveEliminate everything thatdoes not add value in thecustomer’s eyes (waste)FocusandscopeValue streams or processesFocused on improving processperformanceCurrentstateIdentifywasteEliminate wasteFuturestateFull of waste Only value added activitiesApproachand toolsWide range of leantechniques and toolsCulture of continuousimprovementA process is a set, documented, and repeatable methodfor executing an organisational task.Discrete processes are sets of activities where eachproject/job/batch is a finite/discrete entity.• Discrete processes willusually include aproduct design stage,i.e. the products areeither engineered toorder or made toorder.Production of aunique nature, or of anon-repetitive typeA process is a set, documented, and repeatable methodfor executing an organisational task.Flow line processes deal with products that are so standardised that they canproduce units more or less continuously.Flow line systems are more adapted to made to stock products.These are designed in successive generations, but each generationof products is produced on a large scale before its design is revisited.A process is a set, documented, and repeatable methodfor executing an organisational task.Flow line processes deal with products that are so standardised that they canproduce units more or less continuously.The typical example of a mass productionsystem is an automotive assembly line. Thereis still some amount of potential variety (differentcolours, engines, options)The typical example of a continuousproduction system is a brick factory or apaper mill  products strictly identical.Process management is the set of management activities bywhich managers design, monitor, and improve the way in whichbusiness operations are conducted.Αs markets, customers, and competition change, firms have to improve theirprocesses continually to make sure that these are adequate and appropriate. Capacity planning is the set of management decisions dealing with howmany units a facility should be capable of processing. Efficiency: This is the degree to which production is as efficient asplanned. Efficiency is typically measured as used capacity divided byplanned capacity.• Planned capacity: This is the theoretical capacity of a system givensome allowances (e.g. rest).• Used capacity: This is the actual demand, or usage, of resources.If used capacity is less than planned capacity, this is a situation ofover-capacity. If used capacity is higher than planned capacity, this isa situation of under-capacity.A precision machinist has a planned capacity of 15,000 hours per month.In a given month, 16,000 hours were sold, but 3,000 hours were subcontracted out:• The company is in a situation of under-capacity of 1,000 hours, as its sales(16,000 hours) exceed its planned ability to produce (15,000 hours).• The efficiency is 87 % (13,000/15,000), as when using all its resources, thecompany could only produce for 13,000 rather than 15,000 hours. Inventory refers to the stock of various items which is kept on site or in afacility in anticipation of a future use.Manufacturing inventory has traditionally been described within three categories:• Raw Materials Inventory: Sheets of metal, wood panels, etc. that arepurchased for the purpose of using them in the manufacture of a product.• Work in Process Inventory: Partially completed products which arelocated on the shopfloor and which are not ready for sale.• Finished Goods Inventory: Goods which are finished and ready for sale,but which have not yet been purchased by final customers.Inventory management systems are sets of policies, processes, and controlsthat monitor levels of inventory within an organisation and determine how muchinventory a firm should order and when.o Just-in-Time inventory management consists of sourcingmaterials and parts at the right time, in the right place, and inthe right quantity. Its purpose is to eliminate any form ofunnecessary inventory in order to achieve a continuous flow ofproduction state.Performance management is the managerial task concerned with identifyingperformance targets, communicating them, and making sure that these targetsare achieved.The internal performance of an operations system hastraditionally been described along five dimensions: Cost: Refers to the ability of an operations system to deliver an output atminimum cost, given a certain quality standard (value for money). Quality: Refers to the ability of an operations system to deliver an output withspecifications which perfectly match the customer specifications (‘fitness foruse’) or by offering an output that exceeds customer expectations (‘delightingthe customer’). Dependability of delivery: Refers to the ability of an operations system todeliver an output to a customer on a due date. Speed: Refers to the ability of an operations system to deliver an outputfaster than a competitor, or in a short time frame which matches a customer’srequirements. Flexibility: Refers to the ability of an operations system to vary its outputsas demand dictates.Quality control is the set of activities bywhich a company checks all productionagainst certain standards before beingreleased to customers in order to makesure that its products are fault-proof andmatch customers’ needs.Quality assurance is based on thepremise that a faulty product is the result ofa faulty process. If engineers can fix theprocess and ensure that the process onlyproduces good quality parts, then there isno need for inspection any longer.flag up outstanding qualityissues in product andprocess design respectively.a permanent anditerative processquality improvementprocessQuality management is the set of managerial actions taken to ensure thatoperations systems perform adequately on the quality performance dimension.Six sigma is a quality management approach that places heightenedmanagerial attention on customer satisfaction and on seeking businessprocess improvements.Lean production, means doing more with less —less time, lessspace, less human effort, less machinery, less materials— while givingcustomers what they want.Initially Lean started in the Automotive Industry –based on Toyota Production System – TPSNow Lean is implemented in anytype of ManufacturingMining AgricultureChemical ProcessingConstructionLumberand processing operations……and SERVICES as wellHospitalsIn the Office EnvironmentAll kinds of GovernmentEG7322 ‐ Lean Engineering SemesterTwoCredits15Assessment50% Examination50% Project ProjectGroupCase study Content• Principles / Waste Elimination• Lean Services / Manufacturing• Process mapping• Six sigma• Value Management• Process Capability• Statistical Process Control WeekContent1Jan 18‐22Lean basics,Process mapping2Jan 25‐ 293Feb 1‐5No session4Feb 8 ‐ 12Just‐ in –Time (TPS)5Feb 15‐196Feb 22‐26Project launch7March 1‐5Quality Management ,SPC, 6 sigma8March 8‐129March 15‐1910March 22‐2611March 29‐31Value ManagementProject submissionAPRILEASTER BREAK12May 5Revision EG7322 ‐ Lean Engineering• Lean production simplified ‐ Pascal Dennis, Productivity Press.• Creating your lean future state ‐Tom Luyster and Don Tapping,Productivity Press.• The basics of process mapping ‐ Robert Damelio, 2nd edition, CRCPRESS.LEAN – Recommended readingThank you