ISEN 220 Introduction to Production and Manufacturing Systems 12/28/09 Texas A&M Industrial Engineering
Productivity Figure 1.5 (B) 30  – 25  – 20  – 15  – 10  – 5  – 0  – 1950 1970 1990 2010 –  150 –   125 –   100 –   75 –   ...
Productivity Challenge Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as ...
Productivity <ul><li>Measure of process improvement </li></ul><ul><li>Represents output relative to input </li></ul><ul><l...
Productivity Calculations Labor Productivity Productivity = Units produced Labor-hours used =  =  4  units/labor-hour 1,00...
Multi-Factor Productivity  <ul><li>Also known as total factor productivity </li></ul><ul><li>Output and inputs are often e...
Collins Title Productivity Staff of  4  works  8  hrs/day   8  titles/day Payroll cost =  $640 /day  Overhead =  $400 /day...
Collins Title Productivity Staff of  4  works  8  hrs/day   8  titles/day Payroll cost =  $640 /day  Overhead =  $400 /day...
Collins Title Productivity Staff of  4  works  8  hrs/day   8  titles/day Payroll cost =  $640 /day  Overhead =  $400 /day...
Collins Title Productivity Staff of  4  works  8  hrs/day   8  titles/day Payroll cost =  $640 /day  Overhead =  $400 /day...
Productivity Measurement Issues
Service Productivity <ul><li>Typically labor intensive </li></ul><ul><li>Frequently focused on unique individual attribute...
Global Strategies <ul><li>Boeing – sales and production are worldwide </li></ul><ul><li>Benetton – moves inventory to stor...
Global Strategies <ul><li>Volvo – considered a Swedish company but it is controlled by an American company, Ford. The curr...
Other Examples
Boeing Suppliers (787) Firm Country Component Dassault France Design and    PLM software Messier-Bugatti France Landing ge...
Boeing Suppliers (787) Firm Country Component BAE SYSTEMS UK Electronics Alenia Aeronautics Italy Upper center    fuselage...
Boeing Suppliers (787) Firm Country Component Teijin Seiki Japan Hydraulic actuators Mitsubishi Heavy  Japan Wing box Indu...
Reasons to Globalize
Cultural and Ethical Issues <ul><li>Cultures can be quite different </li></ul><ul><li>Attitudes can be quite different tow...
Product Life Cycle Figure 2.5 Best period to increase market share R&D engineering is critical Practical to change price o...
Product Life Cycle Product design and development critical Frequent product and process design changes Short production ru...
What is Forecasting? <ul><li>Process of predicting a future event </li></ul><ul><li>Underlying basis of  all business deci...
Forecasting Approaches <ul><li>Forecasting Approaches </li></ul><ul><ul><li>Overview of Qualitative Methods </li></ul></ul...
Forecasting Discussion Focus <ul><li>Time-series Forecasting </li></ul><ul><ul><li>Decomposition of a Time Series </li></u...
Forecasting Discussion Focus <ul><li>Associative Forecasting Methods: Regression And Correlation Analysis </li></ul><ul><u...
<ul><li>Short-range forecast </li></ul><ul><ul><li>Up to 1 year, generally less than 3 months </li></ul></ul><ul><ul><li>P...
Features of time horizons <ul><li>Medium/long range  forecasts deal with more comprehensive issues and support management ...
Types of Forecasts <ul><li>Economic forecasts </li></ul><ul><ul><li>Address business cycle – inflation rate, money supply,...
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Mazda L2

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Experience Mazda Zoom Zoom Lifestyle and Culture by Visiting and joining the Official Mazda Community at http://www.MazdaCommunity.org for additional insight into the Zoom Zoom Lifestyle and special offers for Mazda Community Members. If you live in Arizona, check out CardinaleWay Mazda's eCommerce website at http://www.Cardinale-Way-Mazda.com

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Mazda L2

  1. 1. ISEN 220 Introduction to Production and Manufacturing Systems 12/28/09 Texas A&M Industrial Engineering
  2. 2. Productivity Figure 1.5 (B) 30 – 25 – 20 – 15 – 10 – 5 – 0 – 1950 1970 1990 2010 – 150 – 125 – 100 – 75 – 50 – 25 – 0 Employment (millions) Index: 1997 = 100 Manufacturing employment Industrial production Estimate
  3. 3. Productivity Challenge Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital) The objective is to improve this measure of efficiency Important Note! Production is a measure of output only and not a measure of efficiency
  4. 4. Productivity <ul><li>Measure of process improvement </li></ul><ul><li>Represents output relative to input </li></ul><ul><li>Only through productivity increases can our standard of living improve </li></ul>Productivity = Units produced Input used
  5. 5. Productivity Calculations Labor Productivity Productivity = Units produced Labor-hours used = = 4 units/labor-hour 1,000 250
  6. 6. Multi-Factor Productivity <ul><li>Also known as total factor productivity </li></ul><ul><li>Output and inputs are often expressed in dollars </li></ul>Output Labor + Material + Energy + Capital + Miscellaneous Productivity =
  7. 7. Collins Title Productivity Staff of 4 works 8 hrs/day 8 titles/day Payroll cost = $640 /day Overhead = $400 /day Old System: = Old labor productivity
  8. 8. Collins Title Productivity Staff of 4 works 8 hrs/day 8 titles/day Payroll cost = $640 /day Overhead = $400 /day Old System: 14 titles/day Overhead = $800 /day New System: = Old labor productivity = New labor productivity
  9. 9. Collins Title Productivity Staff of 4 works 8 hrs/day 8 titles/day Payroll cost = $640 /day Overhead = $400 /day Old System: 14 titles/day Overhead = $800 /day New System: = Old multifactor productivity
  10. 10. Collins Title Productivity Staff of 4 works 8 hrs/day 8 titles/day Payroll cost = $640 /day Overhead = $400 /day Old System: 14 titles/day Overhead = $800 /day New System: = Old multifactor productivity = New multifactor productivity
  11. 11. Productivity Measurement Issues
  12. 12. Service Productivity <ul><li>Typically labor intensive </li></ul><ul><li>Frequently focused on unique individual attributes or desires </li></ul><ul><li>Often an intellectual task performed by professionals </li></ul><ul><li>Often difficult to mechanize </li></ul><ul><li>Often difficult to evaluate for quality </li></ul>
  13. 13. Global Strategies <ul><li>Boeing – sales and production are worldwide </li></ul><ul><li>Benetton – moves inventory to stores around the world faster than its competition by building flexibility into design, production, and distribution </li></ul><ul><li>Sony – purchases components from suppliers in Thailand, Malaysia, and around the world </li></ul>
  14. 14. Global Strategies <ul><li>Volvo – considered a Swedish company but it is controlled by an American company, Ford. The current Volvo S40 is built in Belgium and shares its platform with the Mazda 3 built in Japan and the Ford Focus built in Europe. </li></ul><ul><li>Haier – A Chinese company, produces compact refrigerators (it has one-third of the US market) and wine cabinets (it has half of the US market) in South Carolina </li></ul>
  15. 15. Other Examples
  16. 16. Boeing Suppliers (787) Firm Country Component Dassault France Design and PLM software Messier-Bugatti France Landing gear Thales France Electrical power conversion system and integrated standby flight display Diehl Germany Interior lighting FR-HiTemp UK Fuel pumps and valves Smiths Aerospace UK Central computer system
  17. 17. Boeing Suppliers (787) Firm Country Component BAE SYSTEMS UK Electronics Alenia Aeronautics Italy Upper center fuselage & horizontal stabilizer Toray Industries Japan Carbon fiber for wing and tail units Fuji Heavy Japan Center wing box Industries Kawasaki Heavy Japan Forward fuselage, Industries fixed section of wing, landing gear well
  18. 18. Boeing Suppliers (787) Firm Country Component Teijin Seiki Japan Hydraulic actuators Mitsubishi Heavy Japan Wing box Industries Chengdu Aircraft China Rudder Group Hafei Aviation China Parts
  19. 19. Reasons to Globalize
  20. 20. Cultural and Ethical Issues <ul><li>Cultures can be quite different </li></ul><ul><li>Attitudes can be quite different towards </li></ul><ul><li>Punctuality </li></ul><ul><li>Lunch breaks </li></ul><ul><li>Environment </li></ul><ul><li>Intellectual property </li></ul><ul><li>Thievery </li></ul><ul><li>Bribery </li></ul><ul><li>Child labor </li></ul>
  21. 21. Product Life Cycle Figure 2.5 Best period to increase market share R&D engineering is critical Practical to change price or quality image Strengthen niche Poor time to change image, price, or quality Competitive costs become critical Defend market position Cost control critical Introduction Growth Maturity Decline Company Strategy/Issues Internet Flat-screen monitors Sales DVD CD-ROM Drive-through restaurants Fax machines 3 1/2” Floppy disks Color printers
  22. 22. Product Life Cycle Product design and development critical Frequent product and process design changes Short production runs High production costs Limited models Attention to quality Forecasting critical Product and process reliability Competitive product improvements and options Increase capacity Shift toward product focus Enhance distribution Standardization Less rapid product changes – more minor changes Optimum capacity Increasing stability of process Long production runs Product improvement and cost cutting Little product differentiation Cost minimization Overcapacity in the industry Prune line to eliminate items not returning good margin Reduce capacity Figure 2.5 Introduction Growth Maturity Decline OM Strategy/Issues
  23. 23. What is Forecasting? <ul><li>Process of predicting a future event </li></ul><ul><li>Underlying basis of all business decisions </li></ul><ul><ul><li>Production </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Personnel </li></ul></ul><ul><ul><li>Facilities </li></ul></ul>??
  24. 24. Forecasting Approaches <ul><li>Forecasting Approaches </li></ul><ul><ul><li>Overview of Qualitative Methods </li></ul></ul><ul><ul><li>Overview of Quantitative Methods </li></ul></ul>
  25. 25. Forecasting Discussion Focus <ul><li>Time-series Forecasting </li></ul><ul><ul><li>Decomposition of a Time Series </li></ul></ul><ul><ul><li>Naïve Approach </li></ul></ul><ul><ul><li>Moving Averages </li></ul></ul><ul><ul><li>Exponential Smoothing </li></ul></ul><ul><ul><li>Exponential Smoothing with Trend Adjustment </li></ul></ul><ul><ul><li>Trend Projections </li></ul></ul><ul><ul><li>Seasonal Variations in Data </li></ul></ul><ul><ul><li>Cyclical Variations in Data </li></ul></ul>
  26. 26. Forecasting Discussion Focus <ul><li>Associative Forecasting Methods: Regression And Correlation Analysis </li></ul><ul><ul><li>Using Regression Analysis to Forecast </li></ul></ul>
  27. 27. <ul><li>Short-range forecast </li></ul><ul><ul><li>Up to 1 year, generally less than 3 months </li></ul></ul><ul><ul><li>Purchasing, job scheduling, workforce levels, job assignments, production levels </li></ul></ul><ul><li>Medium-range forecast </li></ul><ul><ul><li>3 months to 3 years </li></ul></ul><ul><ul><li>Sales and production planning, budgeting </li></ul></ul><ul><li>Long-range forecast </li></ul><ul><ul><li>3 + years </li></ul></ul><ul><ul><li>New product planning, facility location, research and development </li></ul></ul>Forecasting Time Horizons
  28. 28. Features of time horizons <ul><li>Medium/long range forecasts deal with more comprehensive issues and support management decisions regarding planning and products, plants and processes </li></ul><ul><li>Short-term forecasting usually employs different methodologies than longer-term forecasting </li></ul><ul><li>Short-term forecasts tend to be accurate than longer-term forecasts </li></ul>
  29. 29. Types of Forecasts <ul><li>Economic forecasts </li></ul><ul><ul><li>Address business cycle – inflation rate, money supply, housing starts, etc. </li></ul></ul><ul><li>Technological forecasts </li></ul><ul><ul><li>Predict rate of technological progress </li></ul></ul><ul><ul><li>Impacts development of new products </li></ul></ul><ul><li>Demand forecasts </li></ul><ul><ul><li>Predict sales of existing product </li></ul></ul>

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