Operation Management

1. ENGINEERS IN SOCIETY
EEB4073
Topic 4 : Operations Management

2. ENGINEERS
IN SOCIETY
EEB4073
TOPIC 4 : OPERATIONS MANAGEMENT
JANUARY 2022 SEMESTER
IR. HAIZATUL HAFIZAH HUSSAIN
P.Eng. (Mechanical)
Cover Picture Credit : https://wallpaperaccess.com/
Picture Credit : https://study.com/academy/course/business-112-operations-management.html

3. COURSE LEARNING OUTCOME
CLO3: To demonstrate the principles
of project, operation and
quality management.

4. STUDENTS SHOULD BE ABLE TO:
Describe the goal
and the building
blocks of JIT
Compare between
the traditional mode
of operations and
JIT system
Explain what is
meant by the term
lean operations
system and JIT
philosophy
Identify or define the 5S,
Push/Pull and
Kanban systems
Describe
maintenance
and reliability
1
2
3
4
5

5. JUST-IN-TIME & LEAN PRODUCTION
Just – In – Time
JIT is a philosophy of continuous and forced
problem solving that supports lean
production.
Lean Production
Lean production supplies the customer with
their exact wants when the customer wants it
without waste.
Key issues are continual improvement
and a pull system.

6. GOAL OF JUST-IN-TIME
The ultimate goal of JIT is a
balanced system
Achieves a smooth, rapid flow
of materials through the
system

7. RELATIONSHIP BETWEEN JIT GOALS
AND BUILDING BLOCKS
Product
Design
Process
Design
Personnel
Elements
Manufactu-
ring Planning
A balanced
rapid flow
Eliminate disruptions
Make the system flexible
Eliminate waste
Ultimate
Goal
Supporting
Goals
Building
Blocks

8. SUPPORTING
GOALS –
SOURCES OF
WASTE
Picture Credit : https://kanbanize.com/lean-management/value-waste/7-wastes-of-lean

9. MINIMIZING WASTE – 5S
SEIRI
SEITON SEIKETSU
SHITSUKE
SEISO

10. MINIMIZING WASTE – 5S
Japanese Translation English
Seiri Proper arrangement Sort
Seiton Orderliness Simplify
Seiso Cleanliness Sweep
Seiketsu Cleanup Standardize
Shitsuke Discipline Sustain
“Good factories develop beginning with the 5S’s. Bad factories fall apart
beginning with the 5 S’s.” - Hirouki Hirano

11. MINIMIZING
WASTE – 5S
▪ A place for everything and
everything in its place.
▪ Not just a housekeeping issue.
▪ Critical foundation for:
▪ Setup reduction
▪ Pull systems
▪ Maintenance
▪ Inventory management
Picture Credit : https://qualitytrainingportal.com/resources/5s/

12. KAIZEN PHILOSOPHY
Picture Credit : shutterstock.com

13. KAIZEN PHILOSOPHY
Waste is the
enemy
1
Everyone should
be involved
3
Built on a cheap
strategy
4
Can be applied
anywhere
5
Supported by a
visual system
6
Focuses attention
where value is
created
7
Process
orientated
8
Stresses main effort
of improvement
should come from
new thinking and
work style
9
The essence of
organizational
learning is to
learn while doing
10
Improvement
should be done
gradually and
continuously
2

14. BIG VERSUS LITTLE JIT
Human
Relations
Materials and
Inventory
Management
Vendor
Relations
Technology
Management
Scheduling Services of Production
Scheduling Materials
LITTLE JIT –
NARROW FOCUS
BIG JIT –
BROAD FOCUS

15. JIT BUILDING BLOCKS
1
2
3
4
Product
Design
Process
Design
Personnel/
organizational
elements
Manufacturing
planning and
control

16. JIT BUILDING BLOCKS :
1. PRODUCT DESIGN
01
STANDARD
PARTS
04
CONCURRENT
ENGINEERING
03
HIGHLY CAPABLE
PRODUCTION
SYSTEMS
02
MODULAR
DESIGN

17. JIT BUILDING BLOCKS :
2. PROCESS DESIGN
Small lot
sizes
Little inventory
storage
Balanced
system
Setup time
reduction
Production
flexibility
Manufacturing
cells
Quality
improvement
Limited work in
process (WIP)

18. 2. PROCESS DESIGN –
QUALITY IMPROVEMENT
Autonomation or known
as Jidoka
Automatic detection of defects during
production
JIDOKA
Japanese term for autonomation

19. 2. PROCESS DESIGN –
PRODUCTION FLEXIBILITY
▪ Balance system: Distributing the workload evenly among workstations.
▪ Work assigned to each workstation must be less than or equal to the cycle time.
▪ Cycle time is set equal to the TAKT time.
▪ Understanding the difference between TAKT Time, Cycle Time and Lead Time are
important for Lean Production.
▪ Use many small units of capacity.
▪ Use off-line buffers.
▪ Reserve capacity for important customers.

20. 2. PROCESS DESIGN – ELEMENTS OF
PRODUCTION FLEXIBILITY
Reduce downtime by
reducing changeover time
Cross-train workers to
help clear bottlenecks
Use preventive
maintenance to
reduce breakdowns
Besides production flexibility,
machine flexibility, volume
flexibility, expansion flexibility,
routing flexibility and product
flexibility are among the Flexible
Manufacturing System (FMS).

21. 2. PROCESS DESIGN –
ELEMENTS OF
PRODUCTION
FLEXIBILITY

22. 2. PROCESS DESIGN – LITTLE
INVENTORY STORAGE
Problems are
more apparent
Increases
product flexibility
Easier to balance
operation
Less storage space
Less rework
Reduces inventory
BENEFITS
OF SMALL
LOT SIZE

23. 1
2
3
4
Workers
as Asset
Cross-trained
workers
Continuous
Improvement Cost
Accounting
Leadership /
Project
Management
5
JIT BUILDING BLOCKS :
3. PERSONNEL/ORGANIZATIONAL ELEMENTS

24. JIT BUILDING BLOCKS :
4. MANUFACTURING PLANNING AND CONTROL
Close
vendor
relationships
Reduced
transaction
processing
Preventive
maintenance
Pull systems
Level loading
Visual systems
01
02
03
04
05
06

25. 4. MANUFACTURING PLANNING AND
CONTROL – PULL/PUSH SYSTEM
PULL SYSTEM
PUSH SYSTEM
System for moving work where a
workstation pulls output from the preceding
station as needed. (e.g. Kanban)
System for moving work
where output is pushed to the
next station as it is completed.

26. 4. MANUFACTURING PLANNING AND
CONTROL – PUSH VS. PULL SYSTEM
Material Flow
Information Flow
FGI
Customer
Raw
Material
Supplier
Final
Assembly
PUSH
FGI
Customer
Raw
Material
Supplier
Final
Assembly
PULL

27. 4. MANUFACTURING PLANNING AND
CONTROL – PUSH SYSTEM
2
1 5
Focuses on
keeping individual
operators and
workstations busy
rather than
efficient use of
materials
Throughput time
will increase as
work-in-process
increases
Hard to respond to
special orders and
order changes
due to long
throughput time
Volumes of
defective work
may be
produced
Line bottlenecks
and inventories of
unfinished products
will occur
3 4
Every worker maximizes own output, making as many products as possible.
The following are the pros and cons:

28. 4. MANUFACTURING PLANNING AND
CONTROL – PULL SYSTEM
Production line is controlled by the last operation, Kanban cards control for work-in-process
(WIP). The following are the pros and cons:
Controls maximum WIP and
eliminates WIP accumulating
at bottlenecks
If a problem arises,
there is no slack in the
system
Throughput time and WIP are
decreased, faster reaction to
defects and less opportunity
to create defects
Keeps materials busy,
not operators. Operators
work only when there is
a signal to produce

29. 4. MANUFACTURING
PLANNING AND CONTROL –
KANBAN PRODUCTION
CONTROL SYSTEM
• Kanban: Card or other device that
communicates demand for work or materials
from the preceding station.
• Kanban is the Japanese word meaning
“signal” or “visible record”.
• Authority to pull, or produce comes from
a downstream process.
• Based on Kanban, the Japanese
introduced the ‘Pointing-and-Calling
standard’ to increase the safety
awareness. Picture Credit : https://www.lynda.com/Business-Skills-tutorials/Stay-Lean-Kanban/604221-2.html
1
2
3

30. 1. User removes a standard sized
container.
2. Signal is seen by the producing
department as authorization to
replenish.
Part numbers mark location
Signal marker on boxes
4. MANUFACTURING PLANNING AND
CONTROL – EXAMPLE OF KANBAN
PRODUCTION CONTROL SYSTEM

31. 4. MANUFACTURING PLANNING AND
CONTROL – KANBAN PRODUCTION
CONTROL SYSTEM
1 Usually each card controls a specific quantity or parts
2
Multiple card systems may be used if there are several
components or different lot sizes
3
Kanban cards provide a direct control and limit on the
amount of work-in-process between cells

32. Work
cell
Raw
Material
Supplier
Kanban
Purchased
Parts
Supplier
Sub-
assembly
Ship
Kanban
Kanban
Kanban
Kanban
Finished
goods
Customer
order
Final
assembly
Kanban
4. MANUFACTURING PLANNING AND
CONTROL – EXAMPLE OF KANBAN
PRODUCTION CONTROL SYSTEM

33. 4. MANUFACTURING PLANNING AND
CONTROL – CALCULATE NO. OF KANBAN
• Need to know the lead time needed to produce a container of parts.
• Need to know the amount of safety stock needed.
Number of kanbans =
Demand during Safety
lead time + stock
Size of container

34. 4. MANUFACTURING PLANNING AND
CONTROL – CALCULATE NO. OF KANBAN
Daily demand = 500 cakes
Production lead time = 2 days
(wait time +
material handling time +
processing time)
Safety stock = 1/2 day
Container size = 250 cakes
Demand during lead time = 2 days x 500 cakes = 1,000
Number of kanbans = = 5
1,000 + 250
250

35. 4. MANUFACTURING PLANNING AND
CONTROL – ADVANTAGES OF KANBAN
Allow only limited amount of faulty
or delayed material
Puts downward pressure on bad
aspects of inventory
Problems are immediately evident
Standardized containers reduce
weight, disposal costs, wasted space
and labour

36. COMPARISON OF JIT AND TRADITIONAL
Factor Traditional JIT
Inventory
Much to offset
forecast errors, late
deliveries
Minimal necessary to
operate
Deliveries Few, large Many, small
Lot sizes Large Small
Setup; runs Few, long runs Many, short runs
Vendors
Long-term
relationships are
unusual
Partners
Workers
Necessary to do the
work
Assets

37. TRANSITIONING TO A JIT SYSTEM
7. Prepare for
obstacles
4. Start by trying to
reduce setup times
5. Gradually
convert operations
6. Convert
suppliers to JIT
2. Decide which
parts need most
effort
3. Obtain support
of workers
1. Get top
management
commitment

38. Ultimate goal of JIT system
would be realized when
“Maintenance and Reliability”
elements are considered as
part of the system.
Picture Credit : https://limblecmms.com/blog/a-maintenance-managers-guide-to-reliability-centered-maintenance/
MAINTENANCE
AND RELIABILITY

39. • Maintenance: is all
activities involved in keeping a
system’s equipment in working
order.
• Reliability: is the
probability that an equipment
will function properly for a
specified time.
MAINTENANCE
AND RELIABILITY
Picture Credit : https://www.accelix.com/community/predictive-maintenance/world-class-maintenance-infographic/

40. MAINTENANCE
Preventive Maintenance: routine inspection and servicing to keep the equipment
in good condition.
Breakdown Maintenance : emergency or priority repairs on failed equipment.

41. • The consistency of your
measurement or the degree to
which an instrument measures the
same way each time it is used under
the same condition with the same
subjects.
• In short, it is the repeatability of
your measurement. A measure is
considered reliable if a person’s
score on the same test given twice is
similar. It is important to remember
that reliability is not measured, it is
estimated.
Picture Credit : https://www.ansys.com/blog/the-what-why-when-who-and-how-of-design-for-reliability
RELIABILITY

42. RELIABILITY
• Test-Retest method: administer the same
measures to the same respondents at two
separate points in time.
• Split-Half method: correlate one-half of a scale
with the other half.
• Calculate reliability coefficient: statistical test
that measures the internal consistency of a set of
items.
Picture Credit : https://www.healthysimulation.com/16389/understanding-
research-for-clinical-simulation-part-2-validity-and-reliability/

43. REFERENCES
Main Reference:
Arazi Idrus, Shaharin Anwar Sulaiman and Mohd Faris Khamidi. (2010) Engineers in Society, McGraw Hill.
Optional References:
Engineer’s Act, Govt. Printers.Aslaksen, E.W., (1996),‘The Changing Nature of Engineering’, McGraw Hill.
Johnston S.F., Goestelow J.P. and King,W,J,. Engineering and Society, Prentice Hall, 2000.
Nicholas, J.M. Project Management for Business and Engineering: Principles and Practice. 2nd Ed. Elsevier, 2004.
Heizer, J and Render, B. Operations Management: 7
th
Edition, Prentice Hall 2004.
Engineers in Nation Building (2002) Board of Engineers, Malaysia, Kuala Lumpur.
Mantel, S.J., Meredith, J.R., Shafer, S.M. and Sutton, M. (2001),‘Project Management in Practice’.