Production and Operations management - assignment 1 - defining a system
Presentation1
1. •Company began in January 2008
•Our aim is to add value to companies and businesses through innovation
and development of their processes
•Companies we have worked with;
–Fronteer Strategy – A small design consultancy – helped introduce a
company structure which complineted their co-creation design strategy
–Phillips – Global consumer electronics company – advised on the
restructure of teams within departments during their relocation to a
new office in Amsterdam.
–Bugaboo – Transportation specialist – developed a new company
structure during 2010
–Konings and Kapplehoff – Small Dutch design consultancy – advised
them on structure and business processes during the creation of the
company
–Tacx – Cycling specialists – developed a manufacturing system and
management structure suited to their aims and product type
ADDING VALUE THROUGH INNOVATION
2. Supply and Materials:
• Granule polypropylene
• UK wide supply
• Pre chipped
• Colour coded storage
• Supplied to through piping
network
Extrusion:
• Specific floor
space in plant
• One operator per
machine
• 2 Machines
• Many defects
• Costs £51500
Moulding:
• Varied machine types
• From Van Dam
• £50000
Storage:
• Stack in rows of 25
• Assigned batch numbers
• Designated room
• Different types
• Accessible by everyone
Quality Control:
• Separate dept.
• Spot checks
• Separate
documentation
• Developed
expertise
3. Plant Investigation
Only evidence of
health and safety
signs within the plant
– at the entrance
Large storage
containers for
raw material
based outside
the
manufacturing
plant.
Loose material
entering machine with
no guards – cause for
concern.
No safety markings,
unmanned, equipment left
lying on floor.
Unorganised storage before
production. Similar condition
after production.
No specialised flooring to
aid workers comfort
during working. Lacking
safety precautions.
Machinery equipment
unmanned and
unprotected
4. Main Areas for Improvement:
Manufacturing:
• Inventory
• Layout planning
• Work ethic
Solutions:
Manufacturing:
• Reduce inventory
• Cell layout
• Increased responsibility
Existing Large Inventory
• Cost money –storage,
transport, re-manufacture.
• Hides problems – Employees
have safety net of inventory so
are more wasteful.
• Contaminates raw material.
• Delays manufacturing
process.
Reducing Inventory
•Kanban (pull) system
•Employees only make items to order
•Employee visual y aware of what is required
•Gives employees goal and reduces waste
Item Description Part Number
Mc D's Large Cup MDLC04
Qty 1520 Lead time 5 days Order date 14/10/2011
Planner John R. Due date 21/10/2011
5. Main Areas for Improvement:
Management:
• Production plan
• Structure
• Health and safety
Solutions:
Management:
• Sophisticated planning
• Varied skills training
• Awareness
Structure:
Visual management:
•Benefits communication
•Provides aims in an easy access form
•Always in accessible place
Structure of workplace:
•5’s
• Allow for efficiency
• Reduce accidents
•Continuous Improvement
• Competitive adv.
6. Lean Tools & Techniques:
• Overall Equipment Effectiveness:
Manufacturing performance measure-
• Availability of 86.7%
• Performance is 93.0%.
• Quality is 95.0%.
OEE = 86.7% Availability x 93.0%
Performance x 95.0% Quality = 76.6%
If OEE increases the change is
worthwhile.
• Set up Reduction:
• Document the current change-over.
• Determine what setup steps can be
done while the machine is still running.
• Streamline setup steps that must be
done while the machine is not running.
• Put the basics in place for workplace
organization and visual control.
•5 Whys:
Ask why 5 times to get to solution
•Visual KPI Board:
Easy to understand performance targets
All displayed in the place
•Simul8
Visual simulation to predict effects changes
will have on the production
8. Managing the Process: Define:
Total Quality Management:
• Better to correct during
the process
• Than discard at the end Measure:
•Set KPI
Quality of supplies:
•Keep suppliers constant
•Quality assured
Analyse:
• Process data
• Improve achieved KPIs
• Communicate
Uncompetitive Competitive
Time
Competitiveness
CompetitorsContinuous improvement
Present rate of change
Stepchange
Self
Improve:
• Competitive
adv.
• Greater market
share
Control:
• Feedback
• Regular meetings
Lean Manufacturing=
Reduction in waste