OM 300 1nd Edition Lecture 7 Outline of Last Lecture I Environmental Regulations and Industry Standards II ISO 14000 III Process Strategy a b c d Process focus Repetitive focus Product focus Mass customization Outline of Current Lecture 1 Process Analysis and Design 2 Systems for Production 3 Spreadsheet Modeling Current Lecture Selection of Equipment Decisions can be complex as alternate methods may be available Important factors may be o Cost o Cash flow o Market stability o Quality o Capacity o Flexibility Equipment and Technology Possible competitive advantage Flexibility may be a competitive advantage May be difficult and expensive and may require starting over Important to get it right Process Analysis and Design Is the process designed to achieve a competitive advantage Does the process eliminate steps that do not add value Does the process maximize customer value Will the process win orders Flow Charts show the movement of materials These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Time Function Mapping shows flows and time frame Value stream Mapping shows flows and time and value added beyond the immediate organization Process Charts uses symbols to show key activities Service Blueprinting focuses on customer provider interaction o Defines 3 levels of interaction o Each level has different management issues o Identifies potential failure points Special Considerations for Service Process Design Some interaction with customer is necessary but this often affects performance adversely The better these interactions are accommodated in the process design the more efficient and effective the process Find the right combination of cost and customer interaction Service Process Matrix Labor involvement is high Focus on human resources Selection and training are highly important Personalized services Automation of standardized services Restricted offerings Low labor intensity responds well to process technology and scheduling Tight control required to maintain standards Production Technology 1 Machine technology 2 Automatic identification systems AISs and RFID 3 3 Process control 4 Vision systems 5 Robots 6 Automated storage and retrieval systems ASRSs 7 Automated guided vehicles AGVs 8 Flexible manufacturing systems FMSs 9 Computer integrated manufacturing CIM Machine Technology Increased precision Increased productivity Increased flexibility Improved environmental impact Reduced changeover time Decreased size Reduced power requirements Automatic Identification Systems AISs Improved data acquisition Reduced data entry errors Increased speed Increased scope of process automation Process Control Real time monitoring and control of processes o Sensors collect data o Devices read data on periodic basis o Measurements translated into digital signals then sent to a computer o Computer programs analyze the data o Resulting output may take numerous forms Vision Systems Particular aid to inspection Consistently accurate Never bored Modest cost Superior to individuals performing the same tasks Robots Perform monotonous or dangerous tasks Perform tasks requiring significant strength or endurance Generally enhanced consistency and accuracy Automated Storage and Retrieval Systems ASRSs Automated placement and withdrawal of parts and products Reduced errors and labor Particularly useful in inventory and test areas of manufacturing firms Automated Guided Vehicle AGVs Electronically guided and controlled carts Used for movement of products and or individuals Flexible Manufacturing Systems FMSs Computer controls both the work station and the material handling equipment Enhanced flexibility and reduced waste Can economically produce low volume and high quality Reduced changeover time and increased utilization Stringent communication requirement between components Computer Integrated Manufacturing CIM Extended flexible manufacturing o Backwards to engineering and inventory control o Forward into warehousing and shipping o Can also include financial and customer service areas o Reducing the distinction between low volume high variety and high volume low variety production Process Redesign The fundamental rethinking of business processes to bring about dramatic improvements in performance Relies on reevaluating the purpose of the process and questioning both the purpose and the underlying assumptions Requires reexamination of the basic process and its objectives Focuses on activities that cross functional lines Any process is a candidate for redesign Spreadsheet Modeling What is a model A model is a purposeful representation of the key factors of an object or system and the relationships among those factors o Abstract representation of a real situation o Enough detail so that key factors and relationships are accurately represented o Omit unnecessary details Everything should be made as simple as possible but not simpler Albert Einstein Types of Models Mental Models Visual Models Physical Models Mathematical Models o Spreadsheet models Excel Work with someone near you to come up with one or two examples of each type of model and write them down Characteristics of a Mathematical Model Usually motivated by a decision Inputs o Quantities or factors that affect a decision o Controllable inputs Decision variables o Uncontrollable inputs Parameters Outputs o Primary o Secondary