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DESIGNING, MANAGING & IMPROVING OPERATIONS DESIGNING, MANAGING & IMPROVING OPERATIONS

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DESIGNING, MANAGING & IMPROVING OPERATIONS - PPT Presentation

Roy D Shapiro Core Reading Process Analysis HBP No 8007 Boston Harvard Business School Publishing 2013 OUTLINE Roy D Shapiro Core Reading Process Analysis HBP No 8007 Boston Harvard Business School Publishing 2013 ID: 605780

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Slide1

DESIGNING, MANAGING & IMPROVING OPERATIONS

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide2

OUTLINE

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).

How to

design a process

to accomplish specific goals

The

critical challenges inherent in

managing operations

How

to think effectively about learning and

process improvement

, and the implications for designing and running operationsSlide3

Operations

ManagementSlide4

Products and services should be designed in such a way that they can be created effectively

Designing the product or service

Processes should be designed

so

they can create all products and services which the operation is likely to introduce

Designing the process

Product / service design has an impact on the process design and vice versa

Design of products / services and design of processes are interrelated and should be treated togetherSlide5

Process design

Operations strategy

Design

Improvement

Planning and control

Operations management

Process design

Supply n

etwork design

Layout

and flow

Process technology

Job

design

Product/service designSlide6

Process Design

Designing successful processes and managing them effectively requires an

understanding of how processes differ from one another

.

Processes that offer

high flexibility, full customization, and superior customer service, for instance, are unlikely to be the lowest cost in their industry.

And those that are low-cost probably do not allow for the flexibility and customization that some customers require

. Two major process designs are: 1

. Process-Focused, 2. Product-focusedRoy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide7

Process

-

Focused

Operations

(

Job-Shops

)

L

L

L

L

L

L

L

L

L

L

M

M

M

M

D

D

D

D

D

D

D

D

G

G

G

G

G

G

A

A

A

Receiving and

Shipping

Assembly

Painting Department

Lathe Department

Milling

Department

Drilling Department

Grinding

Department

P

PSlide8

Raw materials

or customer

Finished item

Station

2

Station

3

Station

4

Material

and/or labor

Station

1

Material

and/or labor

Material

and/or labor

Material

and/or labor

Repetitive

Manufacturing

Product-

Focused

OperationsSlide9

Product-Focused Operations

A product-focused operation is usually divided into several production lines. We will discuss

three product-focused process types

, each distinguished by the pacing of product

flow:

1.

Worker-paced line, 2. Machine

-paced line, and 3. Continuous-flow process.Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide10

Taxonomy of Process

Types

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide11

Worker-Paced lines

In

a

worker-paced

line, workers themselves typically move products or components from one task to the next.

Thus, the rate of product flow is paced by workers themselves. Many worker-paced lines are batch processes (that is, they produce not just one product at a time but multiples of the same product).A manufacturing

cell is also a worker-paced line focused on an often narrow set of products. In it, products are not made in batches but instead are passed one at a time from worker to worker. Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide12

Single-Piece

Flow

versus

Batch

FlowTen-step Sequential ProcessRoy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide13

Single-Piece Flow

If this process is run

with

single-piece flow

(that is, as

a cell), the first unit would take 3 × 10 = 30 minutes to complete. With a

process cycle time of three minutes, the next items would be completed at minute 33, 36, 39

, so on. The 50th

unit would thus be completed at:30 + (49 × 3) = 177 minutes

(

about

three

hours

).WIP is at most 59 units.

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide14

How do we measure

WIP

?

Throughput Time

: Average time that a

unit takes

to go through the entire process (including waiting time). Measured as

time

Work in Process(WIP)

: Average number of units in system over a time interval. Measured as

units

WIP

Throughput rate

Throughput time =

Key

relationship

(Little’s Law)Slide15

Batch Flow

If

this

process

is run instead with a

batch flow—meaning that a batch isn’t moved from one task to the next until the entire batch is completed—with a batch size of 50 units:the throughput time for this process is150 + 150 + . . . + 150 =

1,500 minutes, or 25 hours (more than three workdays). At each step, there will be a batch of product, so the line will have work-in-process (WIP) of 500 units.

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide16

Benefits of Single-Piece

Flow

Single-piece

flow: The 50th unit would be completed at minute 177 (or a bit less than three hours) which is nearly

90% less than that of the batch flow (1500 min.). WIP is at most 59 units as compared to 500 units

WIP of batch process, a reduction of more than 96%. Thus, if speed is important or inventory is expensive, single-piece flow is desirable.

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide17

Machine-Paced

Lines

When the product family is stable and narrow enough that tasks vary insignificantly between one product and another, additional efficiency may be gained by using a

machine-paced line (also called a conveyor-paced line).

Product

is moved from one task to the next by a conveyor or other mechanism, and

product flow is thereby paced by the speed of the conveyor.Work is broken into short, repetitive tasks that can be performed by workers with little training.

The speed of the conveyor is then set by the bottleneck task(s). Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide18

Toshiba

with

a

conveyor-paced line

Consider

Toshiba

, which produces its laptops using a machine-paced process.

In one line, for example, a conveyor is divided into ten sections—each one meter in length and separated from the others by white lines—paced the line. A product or set of components is placed between the white lines. The work required to assemble a computer is divided into ten sets of tasks, as shown in Table 1.

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide19

Toshiba

with

a

conveyor-paced

lineEach worker is assigned to a workstation. When a white line enters a workstation, the worker begins to work on the laptop and must finish all work by the time the next white line comes by.

For smaller products, a worker might pick up the product and work on it but must still place it back between white lines.Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide20

Toshiba

with

a

conveyor-paced

lineOne of the central issues in designing a machined-paced process is the conveyor speed. The faster the speed, the greater the output, but if the conveyor moves too fast, some workers will not be able to complete their tasks in the time it takes two white lines to pass by.

At Toshiba’s conveyor, the space between white lines is one meter, and the longest task takes 114 seconds. Thus, we cannot run the line any faster than 1/114 = 0.00877 meters/second.Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide21

A Slow

Worker

In

what

ways, a worker who works

more slowly than the process cycle time will affect the performance of -

a worker-paced lines and - machine-paced lines?What

are the critical issues in designing worker

and

machine-paced

lines

?Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide22

Continuous-Flow Processes

O

ften

only one

standardized product

—typically in very high volume is produced. Product

is not something that flows in discrete units (such as a laptop); it is something that flows continuously. Output is denoted not in numbers of units, but in pounds or tons or liters or barrels. Examples include the production of cement, steel, petroleum, paper, chemicals, fabric, fruit juices, and many foods.

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide23

Continuous-Flow

Processes

(CFP)

CFPs

are typically

highly capital-intensive

, using technology that has been designed to produce one standardized product and nothing else. To amortize the high costs of capital, CFPs strive for high volume and high machine utilization

. Indeed, many CFPs are run seven days a week, 24 hours a day, often for months at a time before a perhaps lengthy shutdown for cleaning and maintenance. Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide24

Many

real-world processes

, of course, are

hybrids:

combinations of one or more of the process types

The

challenge with hybrid operating systems is to design them so that the output rates of the different processes are as identical as possible.Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide25

Comparing Process

Types

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide26

Managerial

Issues

for

Process

Types:Job-ShopA job shop typically handles small orders for a wide variety of products, each of which may require a setup. The key managerial challenge is to finish

production on time to meet delivery dates. This involves:Assigning

jobs to people and/or machines

(Loading) to improve resource

utilization

Scheduling

the

sequence of tasks to minimize the delays in product flow

(

Prioritizing

)

Controlling the progress of orders as they are being worked onExpediting the late and critical orders

Revising the schedules in light of changes in order status

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide27

Assignment

Assignment model

A linear programming model for optimal assignment of tasks and resources

Hungarian method

Method of assigning jobs by a one-for-one matching to identify the lowest cost solution

16-

27Slide28

Hungarian

Method

(

finds

the lowest opportunity

cost for

each assignment

)

Create zero opportunity co

sts by repeatedly subtracting the lowest costs from each row and column

Draw the minimum number of vertical and horizontal lines necessary to cover all the zeros in the table.

If the number of lines equals either the number of rows or the number of columns, proceed to step 4.

Otherwise proceed to step 3.Slide29

Assignment Method

Subtract the smallest number not covered by a line from all other uncovered numbers. Add the same number to any number at the intersection of two lines. Return to step 2.

Make the assignments

Begin with rows or columns with only one zero

Match items that have zeros, using only one match for each row and each column

Eliminate both the row and the column after the matchSlide30

Example

A contractor pays his subcontractors a fixed fee plus mileage for work performed. On a given day the contractor is faced with three electrical jobs associated with various projects. Given below are the distances between the subcontractors and the projects.

Project

A

B

C Westside

50 36 16 Subcontractors Federated

28 30 18

Goliath

35 32 20

Universal

25 25 14

How should the contractors be assigned to minimize total distance (and total cost)?Slide31

LP Formulation

Decision Variables Defined

x

ij

= 1 if subcontractor i is assigned to project j = 0 otherwise

where: i = 1 (Westside), 2 (Federated), 3 (Goliath), and 4 (Universal) j = 1 (A), 2 (B), and 3 (C) Slide32

LP Formulation

Min

Z=

50

x

11

+ 36x12 + 16x13 + 28

x21 + 30x22 + 18x23 + 35x31 + 32x

32 + 20x33 + 25x41 + 25x42 + 14x43

Subject to: x

11

+

x

12

+

x13

<

1 (no more than one x21 + x22

+ x23 < 1 project assigned

x31 + x32 + x33 < 1 to any one

x41 + x42 + x43 < 1 subcontractor)

x11 + x21 + x31 + x41 = 1 (each project must x12 + x22 + x32 + x42 = 1 be assigned to just x13 + x23 + x33 + x43 = 1 one subcontractor) all xij : 0 or 1 (non-negativity)Slide33

Example

:

Hungarian

Method

Initial Tableau Setup

Since the Hungarian algorithm requires that there be the same number of rows as columns, add a Dummy column so that the first tableau is:

A B

C Dummy Westside 50 36 16

0 Federated 28 30 18

0

Goliath 35 32 20

0

Universal 25 25 14

0Slide34

Example

:

Hungarian

Method

Step 1:

Subtract minimum number in each row from all numbers in that row. Since each row has a zero, we would simply generate the same matrix above.Step 2:

Subtract the minimum number in each column from all numbers in the column. For A it is 25, for B it is 25, for C it is 14, for Dummy it is 0. This yields: A

B C Dummy

Westside 25 11 2 0 Federated 3 5 4 0

Goliath 10 7 6 0

Universal 0 0 0 0 Slide35

Example

:

Hungarian

Method

Step 3:

Draw the minimum number of lines to cover all zeroes.

A

B C Dummy

Westside 25 11 2 0 Federated 3 5 4 0

Goliath 10 7 6 0

Universal 0 0 0 0

Step 4:

The minimum uncovered number is 2 (circled). Slide36

Example

:

Hungarian

Method

Step 5:

Subtract 2 from uncovered numbers; add 2 to all numbers covered by two lines. This gives:

A B C

Dummy Westside 23 9 0 0

Federated 1 3 2 0 Goliath 8 5 4 0 Universal 0 0 0 2 Slide37

Example

:

Hungarian

Method

Step 3:

Draw the minimum number of lines to cover all zeroes.

A

B C Dummy

Westside 23 9 0 0 Federated 1 3 2 0 Goliath 8 5 4 0

Universal 0 0 0 2Step 4:

The minimum uncovered number is 1 (circled).Slide38

Example

:

Hungarian

Method

Step 5:

Subtract 1 from uncovered numbers. Add 1 to numbers covered by two lines. This gives:

A B C

Dummy Westside 23 9 0 1 Federated 0 2 1 0

Goliath 7 4 3 0 Universal 0 0 0

3Slide39

Example

:

Hungarian

Method

Step 4:

The minimum number of lines to cover all 0's is four. Thus, there is a minimum-cost assignment of 0's with this tableau. The optimal assignment is:

Subcontractor Project

Distance Westside C 16 Federated A 28

Goliath (unassigned) Universal

B 25

Total Distance = 69 miles Slide40

Sequencing

Sequencing

Determine the

order

in which jobs at a work center will be processed

Priority rules

Simple heuristics

such as FCFS - first come, first served,

SPT- shortest processing time, EDD

- earliest due date, CR - critical ratio

are

used to select the order in which jobs will be processed

(N

job

, one

machine

problem)These rules generally assume that

:The set of jobs is known; no new orders arrive after processing begins and no jobs are canceledSetup time is independent of processing time

Setup time is deterministicProcessing times are deterministicThere will be no interruptions in processing such as machine breakdowns or accidents

16-

40Slide41

Performance

Criteria

to

Evaluate

These

RulesInstructor Slides

Job flow timeThis is the amount of time it takes from when a job arrives until it is completeIt includes not only processing time but also any time waiting to be processed

Job latenessThis is the amount of time the job completion time is expected to exceed the date the job was due or promised to a customer

Makespan

The total time needed to complete a

group

of jobs from the beginning of the first job to the completion of the last job

Average number of jobs

(WIP)

Jobs that are in a shop are considered to be WIP inventory

WIP =

Sum of total flow time/ Total job

work time

16-

41Slide42

Sequencing Example

Job

Job Work (Processing) Time

(Days)

Job Due Date

(Days)

A

6

8

B

2

6

C

8

18

D

3

15

E

9

23

Apply the

three

popular sequencing rules to these five jobsSlide43

Sequencing Example

Job Sequence

Job Work (Processing) Time

Flow Time

Job Due Date

Job Lateness

A

6

6

8

0

B

2

8

6

2

C

8

16

18

0

D

3

19

15

4

E

9

28

23

5

28

77

11

FCFS: Sequence A-B-C-D-ESlide44

Sequencing Example

SPT: Sequence B-D-A-C-E

Job Sequence

Job Work (Processing) Time

Flow Time

Job Due Date

Job Lateness

B

2

2

6

0

D

3

5

15

0

A

6

11

8

3

C

8

19

18

1

E

9

28

23

5

28

65

9Slide45

Job Sequence

Job Work (Processing) Time

Flow Time

Job Due Date

Job Lateness

B

2

2

6

0

A

6

8

8

0

D

3

11

15

0

C

8

19

18

1

E

9

28

23

5

28

68

6

Sequencing Example

EDD: Sequence B-A-D-C-ESlide46

Sequencing Example

Rule

Average Completion Time (Days)

WIP

Average Lateness (Days)

FCFS

15.4

2.75

2.2

SPT

13.0

2.32

1.8

EDD

13.6

2.43

1.2

Summary of RulesSlide47

Two Work Center Sequencing

Johnson’s Rule

Technique for minimizing

makespan

(

minimizes total idle time) for a group of jobs to be processed on two machines or at two work centers.

It assumes that:Job times are known and constant for each job at the work center

Job times are independent of sequenceJobs follow same the two-step sequence

All jobs are completed at the first work center before moving to the second work center

Instructor Slides

16-

47Slide48

Johnson’s Rule:

Procedure

Instructor Slides

List the jobs and their times at each work center

Select the job with the shortest time

If the shortest time is at the first work center, schedule that job first

If the shortest time is at the second work center, schedule the job last.

Break ties arbitrarily

Eliminate the job from further considerationRepeat steps 2 and 3, working toward the center of the sequence, until all jobs have been scheduled

16-

48Slide49

Johnson’s Rule Example

A

group of six jobs is to be processed through a two-machine flow shop.

The first operation involves cleaning and the second involves painting.

Determine a sequence that will minimize the total completion time

(makespan) for this group of jobs. Processing times are as follows:

Processing Time (Hours)

Job

Work Center 1

Work Center 2

A

5

5

B

4

3

C

8

9

D

2

7

E

6

8

F

12

15Slide50

Johnson’s Rule Example

Select the job with the shortest processing time. It is job D with a time of 2 hours.

Since the time is at the first center, schedule job D first. Eliminate job D from further consideration.

Job B has the next shortest time. Since it is at the second work center, schedule it last and eliminate job B from further consideration. We now have

1st

2nd

3rd

4th

5th

6th

D

 

 

 

 

BSlide51

Johnson’s Rule Example

Processing Time (Hours)

Job

Work Center 1

Work Center 2

A

5

5

C

8

9

E

6

8

F

12

15

1st

2nd

3rd

4th

5th

6th

D

 

 

 

A

B

d.Slide52

Johnson’s Rule Example

1st

2nd

3rd

4th

5th

6th

D

E

 

 

A

B

e. The shortest remaining time is 6 hours for job E at work center 1. Thus, schedule that job toward the beginning of the sequence (after job D). Thus,

f. Job C has the shortest time of the remaining two jobs. Since it is for the first work center, place it third in the sequence. Finally, assign the remaining job (F) to the fourth position and the result is

1st

2nd

3rd

4th

5th

6th

D

E

C

F

A

BSlide53

Johnson’s Rule Example

g. One way to determine the throughput time and idle times at the work centers is to construct a

GANTT

chart

:

 

Thus, the group of jobs will take

51 hours

to complete. The second work center will wait 2 hours for its first job and also wait 2 hours after finishing job C. Center 1 will be finished in 37 hours.Slide54

Managerial Issues for Process Types:Job-Shop

Job-Shops

:

Make-to-Order

Manufacturers

A managerial challenge in

such a dynamic production environment is accurate

cost and delivery time

estimation in order to keep promises to customers about price and delivery date. Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide55

Managerial Issues for Process Types

:

Continuous

Flow

Process Goal: high utilization of labor and equipment since it is

capital intensive. Downtime may be very expensive. How can management prevent downtime?

it’s crucial to keep adequate supplies of raw materials. The cost of excess raw material inventory is typically small relative to the cost of a shutdown.it’s equally important to schedule sufficient maintenance to prevent machine breakdowns

. Rapid repair when breakdown occurs require specialists as well as stocks of critical spare partsMinimization of quality

problems

will

avoid

production shutdown.Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide56

Managerial Issues for Process Types:

Worker

and Machine-

Paced

LinesAn important managerial challenge is to

minimize the delays, idle time, and work-in-process inventories caused by bottlenecks. Typical issues are:Cross-traing of workers

How much buffer stock to keep

between the workstationsLine Balancing

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide57

Conveyor-Paced Assembly

Lines

(1)

Consider

a 40-foot conveyor-paced assembly

line with ten workers placed along it. At any time, the line has ten units of product on it, spaced approximately evenly so that each of the ten workers can be working on one of the items.These

workers are paid $9/hour for the normal 7.5 hours that they work on the line each day, with a 50% premium for any overtime work. The daily demand for the product being assembled on this line is 300 units; this demand is stable.Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide58

Conveyor-Paced

Assembly

Lines

(1)

(

Each of the ten workers positioned in the middle of a four-foot section of the line)Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide59

Conveyor-Paced Assembly

Lines

(1):

Questions

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide60

Conveyor-Paced Assembly

Lines

(2)

Years ago, when Texas Instruments first began to produce its line of digital watches, they were assembled on a traditional conveyor-paced assembly line

with 12 workers

. The assembly line, shown schematically below, consisted of a conveyor belt with perpendicular black lines painted on the belt every meter. The watches were placed on the black lines.

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide61

Conveyor-Paced Assembly

Lines

(2)

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide62

Conveyor-Paced Assembly

Lines

(2)

The belt moved continuously. A worker would pick up a watch from a black line, complete his or her tasks, and then replace the watch on the same black line. (The one-meter distance between black lines was small enough for workers to easily reach to the left to pick up a watch, complete his or her specified tasks, and then reach to the right to replace the watch on the same [moving] black line.) A list of the assembly operations is shown below, with the time required (all labor) to complete the tasks for that operation for a single watch. Each worker performed his or her tasks on every watch.

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide63

Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide64

Conveyor-Paced Assembly

Lines

(2

)Questions

Which operation was the bottleneck?

2.

To maximize the output of this line (and ensure that all tasks are completed), what is the speed at which you would run it?3.

What was the direct labor content per watch?4. What was the labor utilization on this line?Roy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide65

Objective in Line

Balancing

To

minimize

idle time

along the line and increase utilization of equipment and labor by

assigning tasks to workstations in such a way that the workstations have approximately equal time requirements. Perfect balance is not possibleWhy is line balancing important?It allows us to use labor and equipment more efficiently.

It avoids chances that one workstation does not work harder than another.© 2011 Pearson Education, Inc. publishing as Prentice HallSlide66

© 2011 Pearson Education, Inc. publishing as Prentice Hall

Assembly-Line Balancing

Start

drawing

the precedence

diagram

Determine cycle time

Calculate theoretical

minimum number of

workstations

Balance the line by

assigning specific

tasks to workstations

Compute efficiencySlide67

Cycle Time

The maximum time allowed at each workstation to complete its set of tasks on a unit

Cycle time also establishes the output rate of a lineSlide68

The required number of workstations is a function of

Desired output rate

Our ability to combine tasks into a workstation

Theoretical minimum number of stations

How Many Workstations are Needed?Slide69

Efficiency

Balance

Delay

=100% -

Efficiency

Measuring EfficiencySlide70

© 2011 Pearson Education, Inc. publishing as Prentice Hall

Example

1:

40

units

are

required

to

be

produced

per

day (480

minutes)

This means that tasks B and E cannot be done until task A has been completed

Task

Time Immediate Task (minutes) Predecessors A 10 — B 11 A C 5 B D 4 B E 12 A F 3 C, D G 7 F H 11 E I 3 G, H Total time 66 min.Slide71

© 2011 Pearson Education, Inc. publishing as Prentice Hall

Wing Component Example

Task

Time

Immediate

Task (minutes)

A 10 —

B 11 A

C 5 B

D 4 B

E 12 A

F 3 C, D

G 7 F H 11 E I 3 G, H Total time 66

I

G

F

C

D

H

B

E

A

10

11

12

5

4

3

7

11

3

Figure 9.13

P

redecessorsSlide72

© 2011 Pearson Education, Inc. publishing as Prentice Hall

I

G

F

C

D

H

B

E

A

10

11

12

5

4

3

7

11

3

Figure 9.13

Task

Task Must Follow

Time Task Listed

Task (minutes) Below

A 10 —

B 11 A

C 5 B

D 4 B

E 12 A

F 3 C, D

G 7 F

H 11 E

I 3 G, H

Total time 66

Wing Component Example

480 available

mins

per day

40 units required

Cycle time =

Production time available per day

Units required per day

= 480 / 40

= 12 minutes per unit

Minimum number of workstations

=

Time for task

i

Cycle time

n

i

= 1

= 66 / 12

= 5.5 or 6 stationsSlide73

© 2011 Pearson Education, Inc. publishing as Prentice Hall

Wing Component Example

I

G

F

C

D

H

B

E

A

10

11

12

5

4

3

7

11

3

Figure 9.13

Performance Task Must Follow

Time Task Listed

Task (minutes) Below

A 10 —

B 11 A

C 5 B

D 4 B

E 12 A

F 3 C, D

G 7 F

H 11 E

I 3 G, H

Total time 66

480 available mins per day

40 units required

Cycle time = 12 mins

Minimum workstations

= 5.5 or 6

Line-Balancing Heuristics

1. Longest task time

Choose the available task with the longest task time

2. Most following tasks

Choose the available task with the largest number of following tasks

3. Ranked positional weight

Choose the available task for which the sum of following task times is the longest

4. Shortest task time

Choose the available task with the shortest task time

5. Least number of following tasks

Choose the available task with the least number of following tasks

Table 9.4Slide74

© 2011 Pearson Education, Inc. publishing as Prentice Hall

480 available mins per day

40 units required

Cycle time = 12 mins

Minimum workstations

= 5.5 or 6

Performance Task Must Follow

Time Task Listed

Task (minutes) Below

A 10 —

B 11 A

C 5 B

D 4 B

E 12 A

F 3 C, D

G 7 F

H 11 E

I 3 G, H

Total time 66

Station 1

Wing Component Example

Station 2

Station 3

Station 3

Station 4

Station 5

Station 6

Station 6

I

G

F

H

C

D

B

E

A

10

11

12

5

4

3

7

11

3

Figure 9.14Slide75

© 2011 Pearson Education, Inc. publishing as Prentice Hall

Performance Task Must Follow

Time Task Listed

Task (minutes) Below

A 10 —

B 11 A

C 5 B

D 4 B

E 12 A

F 3 C, D

G 7 F

H 11 E

I 3 G, H

Total time 66

Wing Component Example

480 available mins per day

40 units required

Cycle time = 12 mins

Minimum workstations

= 5.5 or 6

Efficiency =

∑ Task times

(Actual number of workstations) x (Largest WS time)

= 66 minutes / (6 stations) x (12 minutes)

= 91.7%Slide76

Wing Component Example

Balance

Delay

=100

% - Efficiency 1-0.917= 0.083or Balance Delay

=(2+1+1+2)/(12*6)= 0.083© 2011 Pearson Education, Inc. publishing as Prentice HallSlide77

Measuring

the

Performance of a

Process

to improveMetrics to Measure

Process Performance Capacity Efficiency

Utilization Flexibility and

Responsiveness QualityRoy D. Shapiro, Core Reading: Process Analysis, HBP No. 8007 (Boston: Harvard Business School Publishing, 2013).Slide78

Improving

Operations

to

be

more

competitiveWithout customers, organizations would cease to existUsually customers prefer:

Lower pricesHigh-quality productsQuick serviceTailored

to their specific needs (customized)Slide79

Designing Production Systems to be

Responsive to Customers

Flexible manufacturing systems

Customer

Relationship

Management

(CRM):

CRM is an approach to managing a company's interaction with current and future customers. CRM systems are designed to compile information on customers across different channels which could include the company's website, telephone, live chat, direct mail, marketing materials and social

media with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. Slide80

Improving Quality

Concept of quality applies the products of both manufacturing and service firms

A firm that provides

higher quality

than others at the same price is

more responsive to customers

Higher quality

can also lead to better efficiency through lower waste levels and operating costsSlide81

Impact of Increased Quality on Organizational PerformanceSlide82

Improving Efficiency:

Total Factor Productivity

Measures how well an organization utilizes all of its resources—such as labor, capital, materials, or energy—to produce its outputsSlide83

Improving Efficiency: Partial Productivity

Measures the efficiency of an individual unit

Labor productivity is most commonly used to draw efficiency comparisons between different organizationsSlide84

Facilities Layout, Flexible Manufacturing, and Efficiency

Facilities layout

: Technique whose goal is to design the machine-worker interface to increase production system efficiency

Flexible manufacturing

: Techniques that attempt to reduce the setup costs associated with a production system

Redesigning the production system to be more productive

Using easily replaced manufacturing equipmentSlide85

Three Facilities LayoutsSlide86

Just-in-Time Inventory and Efficiency

Inventory

: Stock of raw materials, inputs, and component parts that an organization has on hand at a particular time

Just-in-Time (JIT) inventory

: System in which parts arrive at an organization when they are needed, not before

Advantage - Defective inputs can be quickly spotted

Drawback - JIT systems is that they leave an organization without a buffer stock of inventorySlide87

Self-Managed Work Teams

Use of

empowered self-managed teams

can increase

productivity and efficiency

Cost savings arise from eliminating supervisors and creating a flatter organizational hierarchy

People often respond well to being given greater autonomy and responsibility

Teams working together often become very skilled at enhancing productivitySlide88

Process Reengineering and Efficiency

Process reengineering

: Fundamental rethinking and radical redesign of the business process to achieve dramatic improvement in critical measures of performance such as cost, quality, service, and speed

Boosts efficiency by eliminating the time devoted to activities that do not add value