operation management chapter 5
DESCRIPTION
Operation ManagementTRANSCRIPT
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Alex Hill and Terry Hill
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Lecture outline
• INTRODUCTION
• Factors affecting MANUFACTURING PROCESS design
• DESIGNING the manufacturing process
• HYBRID processes
• Critical REFLECTIONS
• SUMMARY
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© Alex Hill and Terry Hill
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Factors affecting manufacturing process design
•STEPS required to
- Turn INPUTS- Into OUTPUTS
TECHNICALREQUIREMENTS
•VOLUMES•MARKET- ORDER-WINNERS- QUALIFIERS
BUSINESSREQUIREMENTS
Manufacturing processes need to meet bothTECHNICAL and BUSINESS requirements
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Categories of product
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Types of manufacturing process
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Developing a strategyUnderstanding customer requirements
Process type
Product Process
Project
Jobbing
Batch
Line
Continuous processing
• Made ON-SITE • Resources BOUGHT TO SITE
• SPECIAL, non-repeat
• ONE PERSON or SMALL GROUP
• STANDARD, repeat low to high volume
• Has to be RESET for each batch of products made
• MASS, repeat high volume
• DOES NOT have to be reset for different products
• MASS, repeat very high volume
• Process runs CONTINUOUSLY and never stops
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Process choices
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Designing the manufacturing processProcess choices
Use the words FLEXIBLE and AGILE with care as they have many DIFFERENT MEANINGS and, therefore, can be misleading
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CASE 5.1
OLD AND NEWCAR PLANTS1.Why does Ford use a
LINE manufacturing process?
2.Why is this process INFLEXIBLE?
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CASE 5.1
Question Answer
Line process
Inflexible
• MASS products• NARROW product range• VERY HIGH VOLUME• NOT RESET for different products
OLD AND NEW CAR PLANTS
• Narrow PRODUCT range• Narrow VOLUME range
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BATCH: SIX PROCESS TYPES LAID OUT
Hybrid processes
SIX PROCESS TYPES FUCTIONALY LAID OUT
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• Less WAITING time• Lower INVENTORY• Easier to SCHEDULE
ADVANTAGES
DISADVANTAGES
• Less FLEXIBLE• Lower equipment
UTILISATION
CELLS are a commonly usedHYBRID PROCESS
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Car RestaurantBird
Making products
Product category and process type
A Bug’s Life
(1998)
Kia Sportage factory
production line
Dinner Rush
(2000)
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Film clip Pit Stop
FilmTitleDirector (year)
A Bug’s LifeJohn Lasseter and Andrew Stanton (1998)
ClipStartFinish
00:47:0000:51:22
What clip showsThe bugs decide that they want to build a bird to protect their community
Key learning objective
The characteristics of a project processHow an operation transforms inputs into outputs
Making productsProduct category and process type
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Film clip Factory
FilmTitleDirector (year)
Kia Sportage factory production line
ClipStartFinish
01:33:1301:34:31
What clip shows Cars being manufactured on a production line
Key learning objective
The characteristics of a high-volume batch processHow an operation transforms inputs into outputs
Making productsProduct category and process type
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Film clip Restaurant
FilmTitleDirector (year)
Dinner RushBob Giraldi (2000)
ClipStartFinish
00:58:5801:02:44
What clip showsThe chef producing a special one-off dish for a restaurant critic who is having dinner in the restaurant
Key learning objective
The characteristics of a low-volume batch process How an operation transforms inputs into outputs (and the difference between services and manufacturing)
Making productsProduct category and process type
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Product category and process type
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Question Bird Car Restaurant
PRODUCT category
PROCESS type
• Made on-site• Special
• Mass• Standard
• Project• Resources
moved to site
• Line• High volume
• Special• One-off
• Jobbing• Small group
Product category and process type
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Critical reflections
• MANUFACTURING PROCESSES must be:- ALIGNED to its market ORDER-WINNERS and
QUALIFIERS- REFLECT its internal BUSINESS requirements
• Although DEMAND CHANGES over time, most businesses will NOT RE-INVEST in a different process
• Choosing the RIGHT PROCESS for the life of a product will have a significant impact on its SALES REVENUE and PROFIT
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Summary• Manufacturing processes must
SUPPORT- Technical and business requirements
• TECHNICAL requirements- The product specification
• BUSINESS requirements- Volumes and market order-winners and
qualifiers
• Each process type has a different set of TRADE-OFFS
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© Alex Hill and Terry Hill
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CASE FOR TUTORIAL
PRET A MANGER