Introduction to Operations Management and Production Systems

Introduction to Operations Management and Production Systems

1. Introduction to Operations Management Engr. John Mark A. Nanip

2. Operations Management It is the design , operation , and improvement of the systems that create and deliver the firm’s primary products. Source: R. Chase, F.R. Jacobs, & N. Aquilano (2005)

3. How will you manage a long queue?

4. Efficiency vs. Effectiveness Maximizing efficiency and effectiveness at the same time creates conflict between two goals.

5. Evolution of Manufacturing Systems Manufacturing system evolved because it needed to address current industry issues. Source: Z.M. Bi (2011)

6. Production Systems Inputs Process Output Man Machine Material Energy Information Management Plant / Facilities Goods / Services A production system uses resources to transform inputs into some desired outputs.

7. Types of Production Systems Production systems can be classified based on product variety and product volume . Production System Continuous Production System Intermittent Production System Continuous-Flow Production Mass / Flow Production Batch Production Job Shop Production Project Production

8. Mass Production / Flow Production The production can be broken down into small repetitive continuous task. Products are assembled as it flow along a production line. Volume of products produced is high but product variety is low.

9. Mass Production / Flow Production Cars are usually made through mass production with the use of moving assembly lines.

10. Mass Production / Flow Production Ford pioneered the use of moving assembly line in car production. Toyota improved Ford’s moving assembly line and developed the JIT and kanban system.

11. Mass Production / Flow Production Ford kept its operation at full tilt in order to maximize economies of scale and then repaired defective cars after it rolled off the line.

12. Mass Production / Flow Production In Toyota , a cord is placed above every station which any worker could pull to stop the assembly when one spotted a problem.

13. Continuous-Flow Production Products flow continuously in a linear process. Product volume is high and is capable of higher product variety compared to mass production. Continuous-flow production is commonly fully-automated.

14. Continuous-Flow Production Continuous – flow production is uninterrupted and usually fully automated . Krispy Kreme doughnuts are produced through this system.

15. Batch Production The production of items takes place in lots, groups, or batches. Production volume is lower compared to mass production but product variety is higher. It is more flexible than typical mass production.

16. Job Shop Production Small amounts of products can be produced with high variety. Each item has its own processing route and takes different paths. Non-standardized products of high variety are produced.

17. Project Production It is a product or service-based production system where a company accepts a single, complex, and large contract in a form of a project.

18. Production Systems Product Volume Product Variety High Low Low High Continuous-Flow Production Mass Production Batch Production Job Shop Production Project Production Continuous Process Production Systems Intermittent Process Production Systems

19. States of a System IDEAL STATE The process is statistically in-control and produces 100 percent conformance. This process has proven stability and target performance over time. This process is predictable and its output meets customer expectations.

20. States of a System THRESHOLD STATE It is characterized by being in statistical control but still producing the occasional non-conformance. This type of process will produce a constant level of non-conformances and exhibits low capability. Although predictable, this process does not consistently meet customer needs.

21. States of a System BRINK OF CHAOS STATE It reflects a process that is not in statistical control but also is not producing defects. The process is unpredictable but the outputs of the process still meet customer requirements. The lack of defects leads to a false sense of security, however, as such a process can produce non-conformances at any moment. It is only a matter of time.

22. States of a System CHAOS STATE The process is not in statistical control and produces unpredictable levels of non-conformance.

23. States of a System Four Process States Natural Process of Degradation Source: Tupkar et. al (2020)

24. SYSTEM ANALYSIS AND DESIGN A collection of interrelated components that built to achieve a certain goal . It decomposes a system to understand how components interact . It deals with “what” and “why” in a system. It is complementary to system analysis. It deals with “how” a system can be improved.

25. How can one analyze a system? There are various ways to analyze a system. Methods can be used simultaneously to ensure better and accurate analysis. Problem identification tools (fishbone diagram, control-impact matrix, Pareto diagram) Time and motion study Lean principles Six sigma / statistical quality control

26. System Design System Design Framework Source: B. Bruegge & A. H. Dutoit (2014)

27. System Analysis and Design Source: D. Ospina (2018)

28. Any questions? Thank you!

29. Think about it. “To improve is to change ; to perfect is to change often .” - Winston Churchill