[PPT]Operations and Competitiveness - Dr.A.Shah - Homedrshahpak.weebly.com/.../5/6/3/3/5633102/topic1.intro.ppt · Web viewElton Mayo Motivation theories 1940s Abraham Maslow 1950s
Post on 28-Mar-2018
231 Views
Preview:
Transcript
Lecture Outline
• What Operations and Supply Chain Managers Do• Operations Function• Evolution of Operations and Supply Chain
Management• Globalization and Competitiveness• Operations• Strategy and Organization of the Text• Learning Objectives for This Course
Copyright 2011 John Wiley & Sons, Inc.
1-2
What Operations and Supply Chain Managers Do
• What is Operations Management?• Design, operation, and improvement of productive systems that
creates and delivers the firm’s primary products and services
• What is Operations?• a function or system that transforms inputs into outputs of greater
value• What is a Transformation Process?
• a series of activities along a value chain extending from supplier to customer
• activities that do not add value are superfluous and should be eliminated
Copyright 2011 John Wiley & Sons, Inc.
1-3
Transformation Process
• Physical: as in manufacturing operations• Locational: as in transportation or warehouse
operations• Exchange: as in retail operations• Physiological: as in health care• Psychological: as in entertainment• Informational: as in communication
1-4
Operations as a Transformation Process
1-5
INPUT • Material• Machines• Labor• Management• Capital
TRANSFORMATIONPROCESS
OUTPUT • Goods• Services
Feedback & Requirements
Operations Function
• Operations• Marketing• Finance and
Accounting• Human
Resources• Outside
Suppliers
1-6
How is Operations Relevant to your job?
• Accounting
• Information Technology
• Management
• “As an auditor you must understand the fundamentals of operations management.”
• “IT is a tool, and there’s no better place to apply it than in operations.”
• “We use so many things you learn in an operations class—scheduling, lean production, theory of constraints, and tons of quality tools.”
1-7
How is Operations Relevant to job career?
• Economics
• Marketing
• Finance
• “It’s all about processes. I live by flowcharts and Pareto analysis.”
• “How can you do a good job marketing a product if you’re unsure of its quality or delivery status?”
• “Most of our capital budgeting requests are from operations, and most of our cost savings, too.”
1-8
Evolution of Operations and Supply Chain Management
• Craft production• process of handcrafting products or services for
individual customers• Division of labor
• dividing a job into a series of small tasks each performed by a different worker
• Interchangeable parts• standardization of parts initially as replacement parts;
enabled mass production
1-9
Evolution of Operations and Supply Chain Management
• Scientific management• systematic analysis of work methods
• Mass production• high-volume production of a standardized product for
a mass market• Lean production
• adaptation of mass production that prizes quality and flexibility
1-10
Historical Events in Operations Management
Era Events/Concepts Dates Originator
IndustrialRevolution
Steam engine 1769 James Watt
Division of labor 1776 Adam Smith
Interchangeable parts 1790 Eli Whitney
Scientific Management
Principles of scientificmanagement
1911 Frederick W. Taylor
Time and motion studies 1911 Frank and Lillian Gilbreth
Activity scheduling chart 1912 Henry Gantt
Moving assembly line 1913 Henry Ford
1-11
Historical Events in Operations Management
Era Events/Concepts Dates Originator
Human Relations
Hawthorne studies 1930 Elton Mayo
Motivation theories1940s Abraham Maslow1950s Frederick Herzberg1960s Douglas McGregor
Operations Research
Linear programming 1947 George DantzigDigital computer 1951 Remington RandSimulation, waitingline theory, decisiontheory, PERT/CPM
1950s Operations research groups
MRP, EDI, EFT, CIM 1960s, 1970s
Joseph Orlicky, IBMand others
1-12
Historical Events in Operations Management
Era Events/Concepts Dates Originator
QualityRevolution
JIT (just-in-time) 1970s Taiichi Ohno (Toyota)TQM (total qualitymanagement)
1980sW. Edwards Deming, Joseph Juran
Strategy andoperations
1980sWickham Skinner, Robert Hayes
Reengineering 1990sMichael Hammer,James Champy
Six Sigma 1990s GE, Motorola
1-13
Historical Events in Operations Management
Era Events/Concepts Dates OriginatorInternet Revolution
Internet, WWW, ERP, supply chain management
1990s ARPANET, TimBerners-Lee SAP,i2 Technologies,ORACLE, Dell
E-commerce 2000s Amazon, Yahoo, eBay, Google, and others
Globalization WTO, European Union, Global supply chains, Outsourcing, Service Science
1990s2000s
China, India, emerging economies
1-14
Historical Events in Operations Management
Era Events/Concepts Dates OriginatorGreen Revolution
Global warming, An Inconvenient Truth, Kyoto
Today Numerous scientists, statesmen and governments
1-15
Evolution of Operations and Supply Chain Management
• Supply chain management– management of the flow of information, products, and services across a
network of customers, enterprises, and supply chain partners
1-16
Globalization
• Why “go global”?– favorable cost– access to international markets– response to changes in demand– reliable sources of supply– latest trends and technologies
• Increased globalization– results from the Internet and falling trade barriers
1-17
Productivity and Competitiveness
• Competitiveness• degree to which a nation can produce goods and
services that meet the test of international markets• Productivity
• ratio of output to input• Output
• sales made, products produced, customers served, meals delivered, or calls answered
• Input• labor hours, investment in equipment, material usage,
or square footage
1-21
Strategy and Operations
• How the mission of a company is accomplished• Provides direction for achieving a mission• Unites the organization• Provides consistency in decisions• Keeps organization moving in the right direction
1-26
Strategy Formulation
1. Defining a primary task• What is the firm in the business of doing?
2. Assessing core competencies• What does the firm do better than anyone else?
3. Determining order winners and order qualifiers• What qualifies an item to be considered for
purchase?• What wins the order?
4. Positioning the firm• How will the firm compete?
5. Deploying the strategy
1-27
Strategic Planning
1-28
Missionand Vision
CorporateStrategy
OperationsStrategy
MarketingStrategy
FinancialStrategy
Voice of theBusinessVoice of the
Customer
Order Winnersand Order Qualifiers
1-29
Source: Adapted from Nigel Slack, Stuart Chambers, Robert Johnston, and Alan Betts, Operations and Process Management, Prentice Hall, 2006, p. 47
Positioning the Firm: Cost
• Waste elimination• relentlessly pursuing the removal of all waste
• Examination of cost structure• looking at the entire cost structure for reduction potential
• Lean production• providing low costs through disciplined operations
1-31
Positioning the Firm: Speed
• Fast moves, Fast adaptations, Tight linkages• Internet
• Customers expect immediate responses• Service organizations
• always competed on speed (McDonald’s, LensCrafters, and Federal Express)
• Manufacturers• time-based competition: build-to-order production and efficient
supply chains• Fashion industry
• two-week design-to-rack lead time of Spanish retailer, Zara
1-32
Positioning the Firm: Quality
• Minimizing defect rates or conforming to design specifications
• Ritz-Carlton - one customer at a time• Service system designed to “move heaven and earth”
to satisfy customer• Employees empowered to satisfy a guest’s wish • Teams set objectives and devise quality action plans• Each hotel has a quality leader
1-33
Positioning the Firm: Flexibility
• Ability to adjust to changes in product mix, production volume, or design
• Mass customization: the mass production of customized parts
• National Bicycle Industrial Company• offers 11,231,862 variations• delivers within two weeks at costs only 10% above
standard models
1-34
Policy Deployment
• Policy deployment• translates corporate strategy into measurable
objectives• Hoshins
• action plans generated from the policy deployment process
1-35
Balanced Scorecard
• Balanced scorecard• measuring more than financial performance1. finances2. customers3. processes4. learning and growing
• Key performance indicators• set of measures to help managers evaluate
performance in critical areas
1-37
Operations Strategy
Products
1-40
Services Processand
Technology
Capacity
HumanResources Quality
Facilities Sourcing OperatingSystems
Current Issues in the OM• Effectively consolidating the operations resulting from mergers:
• Offers economies of scale and Operational Efficiency • In reality the difference in culture and technology a challenge
• Hewett Packard and Compaq Computers • TRW and Northampton Computers
• Develop flexible Supply Chain for mass customization • The challenge of producing so many diff products and also
ensure it distribution • Managing global suppliers, production and distribution networks • Increased Commoditization of suppliers:
• Long term supply contracts to switch over “ plug compatible• Achieving the Service factory:
• Developing personalized service for each customer • Enhancing Value added services:
• Advance knowledge of Model Changes required • Making Efficient use of internet technology• Achieving good service from service firms.
1-41
43
History/Products
• Late 70’s oil crisis• GM closes Fremont, CA plant firing 6000 in 1982• Toyota approaches GM to set up Toyota production system
at a GM plant, United Auto Workers accepts the deal• GM and Toyota put together $400M in 1984. GM owns the
infrastructure, Toyota is the tenant.• Nummi = New United Motor Manufacturing, Inc is born in
1984 as the unique example of a Toyota – GM joint venture• Products: Toyota Corolla, Tacoma Trucks, Pontiac Vibe
(Toyota bottom, GM top) and Toyota Voltz (Toyota bottom, GM top, sold in Japan) , GM Prism until 13/12/01
44
Workers
• Nummi has about 4500 unionized workers• Workers are under two types:
– Production, high school graduates– Maintenance
• Workers work in teams of 4-6• Workers in a team rotate the tasks every 1-3 hours• Team leader is responsible for the rotation. • Team leader withdraws parts from the inventory (every 1-
2 hours) and provides the tools as necessary • Workers make $17 per hour
45
Capacity
• Nummi has a cycle time of – 60 seconds for Corolla, 1 body– 82 seconds for Tacoma, 3 bodies (only cabin is
produced at Nummi, the bottom and the back are bought from suppliers)
• Nummi works in two shifts– I: 6:00-14:30, II: 16:30-1:00– Each shift has 1 hour lunch/dinner break– Starting the first shift at 6:00 workers avoid heavy
morning traffic– Two hours between shifts I and II is to allow for
overtime after the first shift when necessary
46
Work Flow
• Stamping: Forming metal (side, back, front) panels with presses• Body & Weld: Putting panels together• Paint: Paint inspection is the current bottleneck
– Primer body paint applied by robots (chemically hazardous task)
– Door jambs painted manually• Plastics: Making bumpers, inside panels• Assembly: Putting in tires, engine, seats, bumpers, harnessing.
Cars , trucks on 2 km , 0.8 km conveyors• Cars contain Building manifest = BOM = Ingredients list at every
step of these operations
47
Just in time
• Kaizen: continuous improvement• Kanban: replenishment every 1-2 hours• Jidoka: Assure 100% quality. Otherwise pull the Andon
chord– 1000 times per shift– 9% of line stops are longer than 30 seconds– Line stops longer than an hour once every month
• Muda: Waste to be eliminated• Genchi Genbutsu: Go to the source to learn and to solve
the problems• This Japanese terminology is all over the boards in the
plant
48
Creative Tool / Work Place Design
• Die change at the stamping in 3 hours• Tilted storage bins for ease of access• Collapsing storage boxes when empty
– To reduce the empty box storage requirements in trucks returning to suppliers, say in Indiana
– These boxes save about $10M annually– The worker who suggested the boxes earned several
thousand points. 1 point = $1. • More info www.nummi.com
top related