Operation Analysis 1
• Operation Planning and Control
• Quality Control
Operation Planning and
Control
Outline:
• What is Supply Chain?
• Production and Operation Analysis
• Warehousing and Logistics
• Human Factors
What Is Supply Chain?
Supply Chain is …
Supply Chain Management is …
Supply Chain Entities are …
Operation Planning Control
Demand Forecasting
Operations Planning
Inventory Planning & Control
Operation Scheduling
Dispatching and Progress Control
Dispatching, Data Acquisition, Corrective
Action, Measure of Effectiveness
Just-In-Time (JIT)
“Stockless Production”
Method to reduce inventory level
Requirements:
Smooth Material Flow
Reduced Setup Time
Reduced Supplier Lead Time
Zero-Defect Components
Disciplined Shop Floor Control
Material Handling,
Distribution, and Routing
Material Handling
Equipment Concepts
Conveyors, industrial trucks, cranes and hoists, containers and
racks, elevators and lifts, Automatic Storage and Retrieval
System (ASRS), and Automatic Guided Vehicles (AGV)
Principles of Material Handling
Planning, systems, material flow, simplification, gravity, space
utilization, unit size, mechanization and automation, equipment
selection process, standardization, adaptability, dead weight,
utilization, maintenance, control, obsolescence, capacity,
performance, and safety principles.
Quantitative Techniques
Transportation programming, Assignment technique, and
Hungarian Method
AGV Picture
ASRS Picture
Distribution
Warehouse Location
• Analytical technique: tedious
• Easier: simulation
Operations Management
• Routing
• Logistic Systems (adequate inventories of FG,
supplying WH, and customers in an efficient
and effective way)
Extra Information for Material
Handling
BUCKET BRIGADE
A way of organizing workers on a flow line so that the line balances itself
(Prof. Bartholdi, Georgia Institute of Technology)
Benefits:
• A reduced need for planning and management
(“Self Balancing”)
• Production becomes more flexible and agile
(“Self Tuning”)
• Throughput is increased
(“Spontaneously optimal division of work”)
• Reduced 2ndary labor and improved quality (“Min WIP”)
• Training and coordination are simplified because it is easy for workers to know
what to do next
Role-Play Time!!
Question:
Our class is opening a Virtual Factory
currently employed 4 workers.
– Pick up the rubber band using a pin, pencilchopstick, ruler, and hand
– Put check mark on the items you have picked
We have a stack of orders. Each order
requires different amount for different
items. How can we improve the system?
Bucket Brigade
Position: Slowest  Fastest
Whenever the fastest finishes a product:
Push off the order
Walk back to take over the work of his predecessor
Predecessor walks back and so on, until the first
worker walks back to start a new product
Work is "pulled" into the system by the last, fastest
worker
What Did We Learn?
Beginning: out of balance
Afterward: quickly gravitate to the
optimum partition of work
Quality Management
Outline
Quality Management Definition
Quality Control Concepts
Quality Dimension and Cost
The Seven Tools of Quality Control
Methods
Quality Improvement
Quality Management Definition
Definition
Quality management is a method for ensuring that all the
activities necessary to design, develop and implement a
product or service are effective and efficient with respect
to the system and its performance.
Quality Management can Be considered to have three main
components:
• Quality Control
• Quality Assurance
• Quality Improvement
Focus: product / service quality, System / Process
The Differences…
Quality Control: is the ongoing effort to maintain
the integrity of a process to maintain the
reliability of achieving an outcome.
Quality Assurance: is the planned or systematic
actions necessary to provide enough confidence
that a product or service will satisfy the given
requirements for quality.
Quality Improvement: is the purposeful change of
a process to improve the reliability of achieving
an outcome.
Quality Concepts
W. Edward Deming
85% of quality problems within an organization or a
company is a management responisbility. This is well
known as the “common causes”.
Introduced 14 points of management obligations in
order to produce successfully.
Suppliers must be evaluated based on both price and
quality.
The use of customer input to derive quality
requirements.
Mass inspection should only be used for critical
opeartions.
Quality Concepts (Cont’d)
Joseph M. Juran
Introduced the concept of Quality as “fitness for use”
including quality of design, conformance, and
performance, all parameters of fitmess for use.
Introduced Quality Cost Model and emphasize the
importance of maintaining good vendor relations.
Companies must undertsand the needs of their
customers. Company waste must be reduced.
Companies need to do things right the first time.
Quality Concepts (Cont’d)
Philip B. Crosby
Definition of Quality: Conformance to requirements.
Every individual produce product / service and has
customers. The individual is a customer of someone
else.
Quality achievement is a rational approcah through
preventing the occurence of defects or errors.
Standard performance: zero defects (no errors allowed)
Measuring Parameter: quality cost, the sum of all costs
a company invests into the release of quality product or
service.
Quality Dimension in Manufacturing
• Performance: the conformance of product to its primary function.
• Feature: the specific attribute of a product
• Reliability: the ability of a product to perform and maintain its function in
routine circumstances.
• Conformance: the ability of a product to meet certain requirements or
standar tha has been determined
• Durability: product’s ability to endure its usable life over a long period of
time.
• Servicability: the ease to repair a product and the ease of obtaining
replecement of broken or damaged components.
• Aesthetic: the philosophical notion of the beauty of a product.
• Perception: product’s image that has to do with customer’s fanatism and
loyalty that will trigger repeat orders / buyers.
Quality Cost
Expenditure in manufacturing or service that is in
excess of that which would have been incurred if the
product had been built exactly right the first time.
Including: quality planning, production design,
processing, training, information on quality parameters,
inspection, and testing equipment.
Also included in quality cost: scrap, rework, process
failure, process delay, discounted selling price,
customer’s compalin, product claim, warranty claim,
legal claim and (market loss).
The Seven Tools of Quality
Cause and Effect (Fishbone Diagram)
Check Sheet
The Seven Tools of Quality
Control Chart
Histogram
The Seven Tools of Quality
Pareto Chart
Scatter Diagram
The Seven Tools of Quality
Stratification: A technique that separates data
gathered from a variety of sources so that
patterns can be seen (some lists replace
"stratification" with "flowchart" or "run
chart“).
Quality Improvement Methods
ISO 9001
Quality Funfction Deployment (QFD)
Kaizen (continual improvement)
Six Sigma (based on SPC)
PDCA (plan-do-check-act)
Quality Circle
Taguchi Method
Toyota Production System (adapted to become Lean
Manufacturing)
Total Quality Management (TQM)
BPR – Business process reengineering
Total Quality Management
TQM is a management approach for an organization,
centered on quality, based on the participation of all its
members and aiming at long-term success through customer
satisfaction, and benefits to all members of the organization
and to society.
TQM is a management strategy aimed at embedding
awareness of quality in all organizational processes. TQM
has been widely used in manufacturing, education, call
centers, government, and service industries, as well as NASA
space and science programs.
It is aimed to reduce variation from every process so that
greater consistency of effort is obtained.
TQM Roles in Company
Image
Saving
Increase Market Share
Product accountability
Export Opportunity
Quality Management Planning
Design and Build: including structure, process dan its
implementation by top management.
Deployment: Processes are broken down into documented
sub-processes, supported by institution of training related to
each particular sub-process.
Control.
Measurement.
Review.
Improvement.