This document discusses different process strategies used in operations management. It describes process focus strategy as organizing facilities around specific processes to enable low-volume, high-variety production using general purpose equipment. Key aspects of process focus strategy include high product flexibility but also high costs and difficulties with production planning. The document contrasts process focus with repetitive focus, product focus, and mass customization strategies.
This presentation discusses different process strategies including process-focused, repetitive-focused, and product-focused strategies. It provides examples of each strategy and compares their advantages and disadvantages. A process-focused strategy uses general purpose equipment for low volume, high variety products. Repetitive-focused strategies organize facilities by modules for high volume standardized products. Product-focused strategies use specialized equipment for high volume, low variety production. Mass customization blurs the distinctions by enabling high volume, high variety production. The presentation also discusses production technologies, process redesign, and environmentally friendly processes.
The document discusses various process strategies including process focus, repetitive focus, product focus, and mass customization. It describes the characteristics of each strategy and compares them in terms of factors like volume, variety, equipment used, and costs. The document also covers topics like process analysis and design tools, production technology alternatives, using technology in services, and process reengineering.
The document discusses capacity planning for products and services. It explains key concepts like capacity, effective capacity, and utilization. It also outlines factors to consider when developing capacity alternatives and approaches for evaluating alternatives, including cost-volume analysis, break-even analysis, financial analysis, and waiting-line analysis. The goal of capacity planning is to determine the appropriate level and timing of capacity to meet future demand in a cost-effective manner.
The document discusses different types of layout strategies used in operations management. It describes layouts for offices, retail stores, warehouses, and manufacturing facilities. For manufacturing facilities, it outlines process-oriented layouts where similar machines are grouped, work cell layouts that focus on single products, and product-oriented layouts that optimize personnel and machine utilization for repetitive production. Good layouts consider factors like material handling, space usage, and employee and customer flows.
Lean operations aim to remove all non-value adding activities to deliver a faster, more dependable, higher quality and lower cost operation that is more responsive to customers. Just-in-time means producing goods exactly when needed to avoid inventory waste. The lean philosophy focuses on eliminating waste, involving everyone, and continuous improvement. Key lean techniques include visual management, small batch production, pull scheduling, total productive maintenance, and design for manufacturability. Lean and MRP planning approaches can be combined if their advantages are understood and preserved.
6. process selection and facility layoutSudipta Saha
The document discusses process selection and facility layout. It describes different types of processes - job shop, batch, repetitive, continuous flow, and project - and factors like volume, variety, and flexibility that determine which type is suitable. It also covers automation levels from fixed to programmable to flexible. Facility layout depends on the process and aims to optimize efficiency, flow, and safety. Product and process layouts are introduced.
Lean management aims to eliminate waste from manufacturing processes. It developed from Japanese manufacturers responding to economic slowdowns and rising costs. Key lean techniques include just-in-time (JIT) production, which reduces inventory levels, improves cash flow and requires less space. Kanban is a signal system that regulates material flow based on demand. A case study shows how Jaguar implemented lean practices in its Castle Bromwich factory, including visual management boards, line stoppages to fix problems, and JIT to match supply and demand. This reduced waste and helped Jaguar develop cars with fewer resources and less time and waste.
The document discusses single sourcing as a sourcing strategy. It identifies the key advantages as better pricing through higher volumes and better quality through continuous improvements with suppliers. Some disadvantages include potential price escalation and default risk if relying solely on one supplier. The document provides criteria for selecting a single source supplier, such as quality, delivery performance, and price. It also discusses moving from multiple sources to a single source and performing a risk/benefit assessment when considering this change.
This presentation discusses different process strategies including process-focused, repetitive-focused, and product-focused strategies. It provides examples of each strategy and compares their advantages and disadvantages. A process-focused strategy uses general purpose equipment for low volume, high variety products. Repetitive-focused strategies organize facilities by modules for high volume standardized products. Product-focused strategies use specialized equipment for high volume, low variety production. Mass customization blurs the distinctions by enabling high volume, high variety production. The presentation also discusses production technologies, process redesign, and environmentally friendly processes.
The document discusses various process strategies including process focus, repetitive focus, product focus, and mass customization. It describes the characteristics of each strategy and compares them in terms of factors like volume, variety, equipment used, and costs. The document also covers topics like process analysis and design tools, production technology alternatives, using technology in services, and process reengineering.
The document discusses capacity planning for products and services. It explains key concepts like capacity, effective capacity, and utilization. It also outlines factors to consider when developing capacity alternatives and approaches for evaluating alternatives, including cost-volume analysis, break-even analysis, financial analysis, and waiting-line analysis. The goal of capacity planning is to determine the appropriate level and timing of capacity to meet future demand in a cost-effective manner.
The document discusses different types of layout strategies used in operations management. It describes layouts for offices, retail stores, warehouses, and manufacturing facilities. For manufacturing facilities, it outlines process-oriented layouts where similar machines are grouped, work cell layouts that focus on single products, and product-oriented layouts that optimize personnel and machine utilization for repetitive production. Good layouts consider factors like material handling, space usage, and employee and customer flows.
Lean operations aim to remove all non-value adding activities to deliver a faster, more dependable, higher quality and lower cost operation that is more responsive to customers. Just-in-time means producing goods exactly when needed to avoid inventory waste. The lean philosophy focuses on eliminating waste, involving everyone, and continuous improvement. Key lean techniques include visual management, small batch production, pull scheduling, total productive maintenance, and design for manufacturability. Lean and MRP planning approaches can be combined if their advantages are understood and preserved.
6. process selection and facility layoutSudipta Saha
The document discusses process selection and facility layout. It describes different types of processes - job shop, batch, repetitive, continuous flow, and project - and factors like volume, variety, and flexibility that determine which type is suitable. It also covers automation levels from fixed to programmable to flexible. Facility layout depends on the process and aims to optimize efficiency, flow, and safety. Product and process layouts are introduced.
Lean management aims to eliminate waste from manufacturing processes. It developed from Japanese manufacturers responding to economic slowdowns and rising costs. Key lean techniques include just-in-time (JIT) production, which reduces inventory levels, improves cash flow and requires less space. Kanban is a signal system that regulates material flow based on demand. A case study shows how Jaguar implemented lean practices in its Castle Bromwich factory, including visual management boards, line stoppages to fix problems, and JIT to match supply and demand. This reduced waste and helped Jaguar develop cars with fewer resources and less time and waste.
The document discusses single sourcing as a sourcing strategy. It identifies the key advantages as better pricing through higher volumes and better quality through continuous improvements with suppliers. Some disadvantages include potential price escalation and default risk if relying solely on one supplier. The document provides criteria for selecting a single source supplier, such as quality, delivery performance, and price. It also discusses moving from multiple sources to a single source and performing a risk/benefit assessment when considering this change.
The document discusses process strategy and selection. It covers various types of process strategies including process focus, product focus, and repetitive focus. Process focus can take the form of job shops, batch processing, repetitive/assembly, or continuous processes. Product and repetitive focused strategies organize facilities by product or assembly lines respectively. The document also discusses technology, automation, facilities layout, tools for process design like flow diagrams and process charts, and techniques for improving service productivity such as separation, self-service, and automation.
LECTURE 6 - PROCESS & CAPACITY DESIGN.pptMehrNawaz1
This document provides an overview of operations management concepts related to process and capacity design. It discusses different process strategies like process focus, repetitive focus, product focus, and mass customization. It also covers tools for process analysis, designing service processes, process reengineering, selecting equipment, designing capacity, and managing demand and capacity. The key topics covered are matching process strategies to volume and variety, analyzing and improving processes, and determining capacity requirements and managing demand versus capacity.
Process Selection and Facility layout.pptSandipanMaji3
This document discusses operations management processes including process selection, facility layout, and line balancing. There are five basic process types - job shop, batch, repetitive, continuous, and project - determined by required volume and variety. Facility layout objectives include efficient workflow and minimizing costs. Basic layout types are product, process, and combination. Line balancing aims to evenly distribute work tasks among stations to minimize idle time and maximize output. Key considerations for process design and layout include required output, standardization, automation, and worker specialization.
Aggregate planning is an operational activity that does an aggregate plan for the production process, in advance of 6 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum over that period.
This document discusses operations scheduling. It begins by introducing operations scheduling and explaining that it involves assigning jobs, resources, and sequencing operations while accounting for deviations. It then discusses key performance measures for schedules such as job flow time, makespan, past due jobs, work-in-process inventory, total inventory, and utilization. The document proceeds to list objectives and functions of operations scheduling such as efficient resource use, on-time delivery, and minimizing costs and inventory. Finally, it briefly outlines types of scheduling like forward and backward, and methods like Johnson's algorithm and the index method.
The document provides an overview of operations management. It discusses what operations management is, its key functions like production and operations, and why studying it is important. It also summarizes some of the main areas operations management covers such as process design, quality management, forecasting, and product design.
Process strategy involves deciding the most profitable way to produce a designed good or service. There are four process strategy directions an operations manager can take: process focus, repetitive focus, product focus, and mass customization. Process focus allows for flexibility through movement between processes for low-volume, high-variety production. Repetitive focus is a traditional assembly line that is less flexible but more structured. Product focus is high-volume, low-variety production that requires consistency. Mass customization enables rapid, low-cost production customized to individual customers, making it the most complex option. The operations manager must choose the strategy best suited to their customers and production processes.
This document provides an analysis of inventory management techniques used at DP World Cochin. It begins with an introduction and acknowledgements. The objectives of the study are to examine the inventory management techniques used at DP World Cochin, calculate and analyze inventory ratios, determine economic order quantities of spares to reduce requisition costs, conduct a VED and ABC analysis to classify spare parts. The scope is limited to evaluating DP World Cochin's inventory management system and techniques. The study focuses on how the company controls inventory through various methods over a 2 month period.
Capacity planning is the process of determining a company's production capacity needed to meet changing demands. It involves determining the type, amount, and timing of capacity required. Key decisions include selecting the appropriate level and flexibility of facilities while maintaining balance. The process includes estimating future needs, evaluating existing capacity, identifying alternatives, analyzing costs, assessing qualitative factors, selecting an alternative, and monitoring results. Efficiency and utilization are measured by comparing actual output to effective and design capacities. Economies and diseconomies of scale affect costs based on output levels. Cost-volume analysis examines the relationships between costs, revenues, and profits at different volumes.
The document discusses different types of production processes. There are four main types: job shop production, batch production, mass production, and continuous/flow production. Job shop production involves unique custom products in low volumes. Batch production groups similar products into batches. Mass production focuses on high volumes of standardized products. Continuous production involves a linear and automated process with no backtracking.
This document provides an overview of operations management concepts related to the design of goods and services. It covers topics like product selection, new product development, product life cycles, quality function deployment for defining customer needs, and documents used in production like engineering drawings, bills of materials, and work orders. The document presents these concepts through text and diagrams/figures and provides learning objectives for understanding product design and development.
Production planning and control (PPC) involves coordinating activities like material control, process planning, and scheduling to systematically plan production. The objectives of PPC include meeting production targets with available resources, providing the right quality and quantity of products, and coordinating departments. PPC functions include material control, process planning, scheduling, dispatching work, and following up on production. There are different types of production systems like job shops, mass production, and batch production. Aggregate production planning coordinates with sales and marketing. Capacity planning matches resources to demand. Master production schedules convert aggregate plans into specific product schedules. Material requirements planning determines material needs. Manufacturing resource planning integrates all resource planning functions. Enterprise resource planning (ERP)
An inventory management system was developed for a global manufacturing company to help track parts for products across worldwide suppliers more efficiently. The custom database solution provides a centralized place for multiple buyers to view real-time inventory and delivery status updates. This helps reduce costs and informs decision-making by eliminating the use of spreadsheets and manual tracking processes.
This document outlines key aspects of aggregate planning including:
- Aggregate planning matches supply and demand over an intermediate time horizon to determine necessary resource capacity. It balances demand forecasts with available resources.
- Strategies for adjusting capacity include level production, overtime/under-time work, subcontracting, and part-time hiring. Strategies for managing demand include shifting demand across time periods, incentives, and partnering with suppliers.
- Quantitative techniques for aggregate production planning include linear programming, transportation methods, linear decision rules, and management coefficients models. These help determine optimal production and capacity levels.
Inventory management involves balancing the costs of holding inventory with the costs of stockouts. Key considerations include classifying inventory using ABC analysis, ensuring accurate records through cycle counting, and determining optimal order quantities using economic order quantity models to minimize total costs. The economic order quantity model balances ordering costs and holding costs to find the point where total costs are minimized.
MRP-2 is an evolution of MRP that incorporates additional planning elements such as finances, sales, and integrated resource planning. MRP-2 uses a common database to integrate various business functions and allow for simulation of production schedules based on demand forecasts, inventory levels, bills of materials, and resource constraints. This provides benefits like improved scheduling, inventory control, and information flow. While MRP-2 enables more holistic planning than MRP-1, it also requires more complex implementation and recalculation if unexpected changes occur.
This document discusses different process strategies including process focus, repetitive focus, product focus, and mass customization. Process focus involves producing a high variety of products in low volumes using general purpose equipment. Repetitive focus uses specialized equipment and assembly lines for standardized, high volume production. Product focus is for very high volumes of standardized products using continuous, specialized automation. Mass customization combines flexibility and efficiency to produce high volumes of customized products.
Operations - Introduction & Production SystemsRobbieA
Operations involves converting inputs like raw materials into outputs like finished goods through various processes. It is a core business function and important because it produces the products and services that generate profits. When deciding on a production system, key factors to consider include the nature of the product, required quantity, available resources, and business development stage. Production levels may vary due to changes in demand, staffing issues, equipment breakdowns, and maintenance needs.
The document discusses process strategy and selection. It covers various types of process strategies including process focus, product focus, and repetitive focus. Process focus can take the form of job shops, batch processing, repetitive/assembly, or continuous processes. Product and repetitive focused strategies organize facilities by product or assembly lines respectively. The document also discusses technology, automation, facilities layout, tools for process design like flow diagrams and process charts, and techniques for improving service productivity such as separation, self-service, and automation.
LECTURE 6 - PROCESS & CAPACITY DESIGN.pptMehrNawaz1
This document provides an overview of operations management concepts related to process and capacity design. It discusses different process strategies like process focus, repetitive focus, product focus, and mass customization. It also covers tools for process analysis, designing service processes, process reengineering, selecting equipment, designing capacity, and managing demand and capacity. The key topics covered are matching process strategies to volume and variety, analyzing and improving processes, and determining capacity requirements and managing demand versus capacity.
Process Selection and Facility layout.pptSandipanMaji3
This document discusses operations management processes including process selection, facility layout, and line balancing. There are five basic process types - job shop, batch, repetitive, continuous, and project - determined by required volume and variety. Facility layout objectives include efficient workflow and minimizing costs. Basic layout types are product, process, and combination. Line balancing aims to evenly distribute work tasks among stations to minimize idle time and maximize output. Key considerations for process design and layout include required output, standardization, automation, and worker specialization.
Aggregate planning is an operational activity that does an aggregate plan for the production process, in advance of 6 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum over that period.
This document discusses operations scheduling. It begins by introducing operations scheduling and explaining that it involves assigning jobs, resources, and sequencing operations while accounting for deviations. It then discusses key performance measures for schedules such as job flow time, makespan, past due jobs, work-in-process inventory, total inventory, and utilization. The document proceeds to list objectives and functions of operations scheduling such as efficient resource use, on-time delivery, and minimizing costs and inventory. Finally, it briefly outlines types of scheduling like forward and backward, and methods like Johnson's algorithm and the index method.
The document provides an overview of operations management. It discusses what operations management is, its key functions like production and operations, and why studying it is important. It also summarizes some of the main areas operations management covers such as process design, quality management, forecasting, and product design.
Process strategy involves deciding the most profitable way to produce a designed good or service. There are four process strategy directions an operations manager can take: process focus, repetitive focus, product focus, and mass customization. Process focus allows for flexibility through movement between processes for low-volume, high-variety production. Repetitive focus is a traditional assembly line that is less flexible but more structured. Product focus is high-volume, low-variety production that requires consistency. Mass customization enables rapid, low-cost production customized to individual customers, making it the most complex option. The operations manager must choose the strategy best suited to their customers and production processes.
This document provides an analysis of inventory management techniques used at DP World Cochin. It begins with an introduction and acknowledgements. The objectives of the study are to examine the inventory management techniques used at DP World Cochin, calculate and analyze inventory ratios, determine economic order quantities of spares to reduce requisition costs, conduct a VED and ABC analysis to classify spare parts. The scope is limited to evaluating DP World Cochin's inventory management system and techniques. The study focuses on how the company controls inventory through various methods over a 2 month period.
Capacity planning is the process of determining a company's production capacity needed to meet changing demands. It involves determining the type, amount, and timing of capacity required. Key decisions include selecting the appropriate level and flexibility of facilities while maintaining balance. The process includes estimating future needs, evaluating existing capacity, identifying alternatives, analyzing costs, assessing qualitative factors, selecting an alternative, and monitoring results. Efficiency and utilization are measured by comparing actual output to effective and design capacities. Economies and diseconomies of scale affect costs based on output levels. Cost-volume analysis examines the relationships between costs, revenues, and profits at different volumes.
The document discusses different types of production processes. There are four main types: job shop production, batch production, mass production, and continuous/flow production. Job shop production involves unique custom products in low volumes. Batch production groups similar products into batches. Mass production focuses on high volumes of standardized products. Continuous production involves a linear and automated process with no backtracking.
This document provides an overview of operations management concepts related to the design of goods and services. It covers topics like product selection, new product development, product life cycles, quality function deployment for defining customer needs, and documents used in production like engineering drawings, bills of materials, and work orders. The document presents these concepts through text and diagrams/figures and provides learning objectives for understanding product design and development.
Production planning and control (PPC) involves coordinating activities like material control, process planning, and scheduling to systematically plan production. The objectives of PPC include meeting production targets with available resources, providing the right quality and quantity of products, and coordinating departments. PPC functions include material control, process planning, scheduling, dispatching work, and following up on production. There are different types of production systems like job shops, mass production, and batch production. Aggregate production planning coordinates with sales and marketing. Capacity planning matches resources to demand. Master production schedules convert aggregate plans into specific product schedules. Material requirements planning determines material needs. Manufacturing resource planning integrates all resource planning functions. Enterprise resource planning (ERP)
An inventory management system was developed for a global manufacturing company to help track parts for products across worldwide suppliers more efficiently. The custom database solution provides a centralized place for multiple buyers to view real-time inventory and delivery status updates. This helps reduce costs and informs decision-making by eliminating the use of spreadsheets and manual tracking processes.
This document outlines key aspects of aggregate planning including:
- Aggregate planning matches supply and demand over an intermediate time horizon to determine necessary resource capacity. It balances demand forecasts with available resources.
- Strategies for adjusting capacity include level production, overtime/under-time work, subcontracting, and part-time hiring. Strategies for managing demand include shifting demand across time periods, incentives, and partnering with suppliers.
- Quantitative techniques for aggregate production planning include linear programming, transportation methods, linear decision rules, and management coefficients models. These help determine optimal production and capacity levels.
Inventory management involves balancing the costs of holding inventory with the costs of stockouts. Key considerations include classifying inventory using ABC analysis, ensuring accurate records through cycle counting, and determining optimal order quantities using economic order quantity models to minimize total costs. The economic order quantity model balances ordering costs and holding costs to find the point where total costs are minimized.
MRP-2 is an evolution of MRP that incorporates additional planning elements such as finances, sales, and integrated resource planning. MRP-2 uses a common database to integrate various business functions and allow for simulation of production schedules based on demand forecasts, inventory levels, bills of materials, and resource constraints. This provides benefits like improved scheduling, inventory control, and information flow. While MRP-2 enables more holistic planning than MRP-1, it also requires more complex implementation and recalculation if unexpected changes occur.
This document discusses different process strategies including process focus, repetitive focus, product focus, and mass customization. Process focus involves producing a high variety of products in low volumes using general purpose equipment. Repetitive focus uses specialized equipment and assembly lines for standardized, high volume production. Product focus is for very high volumes of standardized products using continuous, specialized automation. Mass customization combines flexibility and efficiency to produce high volumes of customized products.
Operations - Introduction & Production SystemsRobbieA
Operations involves converting inputs like raw materials into outputs like finished goods through various processes. It is a core business function and important because it produces the products and services that generate profits. When deciding on a production system, key factors to consider include the nature of the product, required quantity, available resources, and business development stage. Production levels may vary due to changes in demand, staffing issues, equipment breakdowns, and maintenance needs.
Operations - Introduction & Production SystemsRobbieA
Operations involves converting inputs like raw materials into outputs like finished goods through various processes. It is a core business function and important because it produces the products and services that generate profits. When deciding on a production system, key factors to consider include the nature of the product, required quantity, available resources, and business development stage. Production levels may vary due to changes in demand, staffing issues, equipment breakdowns, and maintenance needs.
Operations involves transforming inputs through production processes to create outputs for consumers. Production managers make key decisions about what to produce, how to produce it, and where to produce it. They also manage relationships with suppliers and control stock levels to meet demand while minimizing costs. Businesses use various techniques like quality control, quality circles, and total quality management to ensure high quality outputs.
Organizations exist to provide goods or services to society. Top organizations focus on core products that provide customer satisfaction rather than just physical goods. Goods and services selection involves constantly developing new products to generate substantial revenue and replace products with limited lifecycles. The product development process includes identifying customer and market needs, conducting feasibility studies, advancing the design, developing and engineering the product, evaluating and improving the product, and providing product use and support. Organizations must design operations and products in a way that achieves competitive advantage through differentiation, response to customer needs, or low cost.
Operations management involves transforming inputs into finished outputs through an organized production process. Key aspects of operations management include production planning and control, determining appropriate production systems based on factors like the product, market size, and resources, managing purchasing and materials, controlling stock levels using techniques like just-in-time production, and ensuring quality at all stages of production. Total quality management aims to involve all employees in continuously improving quality to meet customer needs.
The document discusses economic order quantity (EOQ) and total quality management (TQM). It defines EOQ as the ideal quantity a company should purchase to meet demand while minimizing costs. It also outlines the key principles of TQM, including a focus on customers, continuous improvement, and strategic approaches. An example is given of how Toyota implemented kanban cards in its just-in-time inventory system using TQM principles.
The document discusses production management and various related topics. It begins by defining production and explaining why studying production is important for business objectives like profit making and sustainable growth. It then covers various classifications of production systems like continuous, mass, batch and job shop production. Other key topics summarized include lean manufacturing principles, operations strategy, developing an operations strategy, and a case study comparing the strategies of Kmart and Walmart.
Production and operations management deals with converting inputs into useful outputs through physical transformation processes while meeting organizational objectives like effectiveness, efficiency, and adaptability. There are different types of production systems like job shop production, batch production, and mass production characterized by factors like volume, variety, and process flow. Key areas of production and operations management include location planning, facility layout, inventory management, quality control, and maintenance management. Automation uses mechanical and electronic systems to operate production and has advantages like increased productivity but also disadvantages such as potential job losses and reduced purchasing power.
Just-In-Time (JIT) is a Japanese manufacturing philosophy developed in the 1970s that was first adopted by Toyota. The main goal of JIT is to meet consumer demands by eliminating waste in the production system. It aims to reduce inventory and lead times by producing only what is needed for smooth, efficient production. JIT requires extensive commitment and changes such as standardization, multi-skilled workers, pull-based production, and close supplier relationships to be successful.
Lean manufacturing aims to minimize waste and maximize productivity within manufacturing systems. It identifies three main types of waste - muda (non-value adding activities), mura (unevenness), and muri (overburdening workers or resources). Specifically, lean focuses on eliminating the original seven wastes identified by Toyota - transportation, inventory, motion, waiting, overproduction, over-processing, and defects. By removing these wastes, lean aims to create an efficient holistic manufacturing process that reduces costs and improves revenue.
Lecture_3 (1).pptx facility layout and capacitypoonam1812yadav
This document discusses facility layout and capacity planning. It defines capacity planning and describes different time horizons for capacity planning, including long term, intermediate term, and short term. It also discusses different capacity planning strategies such as capacity lead, average capacity, and capacity lag strategies. The document then covers topics such as best operating levels, economies of scale, types of facility layouts including process and product layouts, and compares the characteristics of process and product layouts.
This document provides an introduction and agenda for topics related to operations management, competitive strategy, competitive advantage, and time-based competition. It includes sections on the history of operations management, differences between manufacturing and service operations, operations management decisions at the strategic and tactical levels, and techniques for reducing cycle time such as just-in-time and kanban systems. The document emphasizes the importance of operations strategy and positioning the production system to meet market requirements through factors like cost, quality, and flexibility.
This document provides an overview of different types of production systems:
- Job shop production involves manufacturing low volumes of high-variety customized products using general purpose machines.
- Batch production produces limited batches of similar products in regular intervals using flexible machines and equipment.
- Mass production uses dedicated equipment to continuously produce high volumes of standardized products through a process line.
- Continuous production arranges facilities in a linear process flow with fully automated material handling for zero-flexibility standardized output.
Corporate Project: Wipro – Introductory Training Jessica Huynh
As a project for the course GENB 3302 at the University of Houston, our team created an introductory training presentation for the Downstream Division for Wipro.
The document discusses capacity planning and management. It defines key terms like capacity, bottlenecks, utilization, and throughput. It outlines factors that determine effective capacity like facilities, processes, supply chain management and more. It discusses Eliyahu Goldratt's Theory of Constraints and how to identify, utilize, and elevate the constraint to improve the system. Common capacity planning strategies like leading, following and tracking capacity are also summarized. The document is intended to help participants plan capacity in their own areas and plants.
This document provides an outline and overview of key concepts in operations management process strategy. It discusses four main process strategies - process focus, repetitive focus, product focus, and mass customization focus. It compares the characteristics of each strategy and provides examples. Additionally, it covers topics like process analysis and design tools, production technology, service process design, and process reengineering. The overall document provides a framework for understanding different process strategies and how they are applied.
Joel Marusiak, Neovia Logistics presenatation at Spare Parts 2013Copperberg
"Global Inventory Management Strategy, Design & Execution:
Optimisation & Flexibility Amidst Constant Change" Joel Marusiak, IM Solutions Manager - EMEA, Neovia Logistics presenation at Spare Parts Business Platform 2014.
Find out more http://www.sparepartseurope.com/
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In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
1. OPERATIONS
MANAGEMENT 1
PROCESS STRATEGY
PROCESS FOCUS
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2. What is a proccess strategy?
• A process(or transformation) strategy is an organization’s approach to transforming resources into goods and services.
Objective: How to produce a product or provide a service that:
Meets or exceeds customer requirements
Meets cost and managerial goals
Has long term effects on
Efficiency and production flexibility
Costs and quality
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3. • In understanding Process strategy there are three principles that are particularly
important:
The key to successful process decisions is to make choices that fit the situation.
Individual processes are the building blocks that eventually create the firm's whole
supply chain.
Management must pay close attention to all interfaces between processes in the
supply chain, whether they are performed internally or externally.
It can be utilized to guide a variety of process decisions, operations strategy, and your
business' ability to obtain the resources necessary to support them.
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4. A process involves the use of an organization’s resources to provide something of
value.
• Major process decisions include:
Process Structure
Customer Involvement
Resource flexibility
Capital intensity
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5. Key Role of the Manager: assess whether the advantages
outweigh disadvantages
It is particularly important if your business involves a high level of customer contact.
Negative aspects:
• Can be disruptive thereby making the process less efficient.
• Quality measurement also becomes more difficult
• can also mean greater expenses :employees with greater
interpersonal skills and possibly consider revising your facility
layout
Positive aspects:
• Some customers seek active participation in and control over the
service process, particularly if they will enjoy savings in both price
and time
• Can mean better quality, faster delivery, greater flexibility, and even
lower cost.
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7. Capital Intensity
Capital intensity ratio of a company is a measure of the amount of capital needed per dollar of revenue.
A high capital intensity ratio may due to lower utilization of the company's assets or it may be because the company's
business is more capital intensive and less labor intensive (for example, because it is automated).
However, for companies in the same industry and following similar business model and production processes, the company
with lower capital intensity is better because it generates more revenue using less assets.
Total Assets
Sales incomes generated at a specified period
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8. Example of capital intensity:
• Coca Cola Company (NYSE: KO) earned $46,542 million in financial year 2011-2012. Total assets at the end of the period
were $79,974 million. PepsiCo's total asset turnover ratio for equivalent period was 0.94. Compare capital intensity of both
the companies and conclude which one is more efficient using this single metric.
• Solution
• Coca Cola Company's capital intensity ratio
= Total Assets ÷ Sales
= $79,974M ÷ $46,542M
= 1.72
• PepsiCo's capital intensity ratio
= 1 ÷ Asset Turnover
= 1 ÷ 0.94 = 1.06
• PepsiCo seems to be using its assets more efficiently. It used only $1.06 dollars per $1 of revenue. Coca Cola Company on
the other hand utilized $1.72 of assets to generate $1 of revenue.
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9. MARTA ALARCÓN TAMAYO JORGE MORENO FUENTES
There are four process strategies:
1) Process Focus
2) Repetitive Focus
3) Product Focus
4) Mass Customization
PROCESS STRATEGY OVERVIEW
10. What is process focus?
• A production facility organized around processes to facilitate low-volumen high-variety
productions.
• All operations are grouped according to the type of process.
• The system is also called ‘job or intermitent
• It is usually used to produce small quantity of different items on general purpose machines.
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11. What are the main characteristics of the
process focus?
Facilities are organized around specific activities or
processes
General purpose equipment and skilled personnel
High degree of product flexibility
Typically high costs and low equipment utilization
Product flows may vary considerably making planning
and scheduling a challenge
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12. WORKCASE: ARNOLD PALMER HOSPITAL
(low volume, high variety,
intermittent processes)
Arnold Palmer Hospital
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Many departments
and many routings
Many different outputs
(uniquely treated patients)
Many inputs
(surgeries, sick
patients,
baby deliveries,
emergencies)
13. WORKCASE: ARNOLD PALMER HOSPITAL
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The Heart Center
•The Heart Center
• Pediatric Hybrid Cardiac Catheterization Lab
• Cardiac Surgery
• Pediatric Cardiac Anesthesia
• Pediatric Cardiovascular Intensive Care Unit
• Pediatric Cardiac Home Monitoring Program
Cardiology Endocrinology Neurology Orthopaedics
14. To summarize:
Positive Negative
Greater product flexibility
More general propose equipment
Lower initial capital investment
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More highly trained personal
More difficult production planning and control
Low equipment utilization(5%)
Requires more time if the system operates on
one or more processes at a time
High Variable costs
15. Facilities often organized as assembly lines
Characterized by modules with parts and
assemblies made previously
Modules may be combined for many output options
Less flexibility than process-focused facilities but
more efficient
Repetitive Focus
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17. Product Focus
Facilities are organized by product
High volume but low variety of products
Long, continuous production runs enable
efficient processes
Typically high fixed cost but low variable
cost
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skilled labor
19. Mass Customization
The rapid, low-cost production of goods and
service to satisfy increasingly unique
customer desires
Combines the flexibility of a process focus
with the efficiency of a product focus
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21. Mass Customization
Mass Customization
Effective scheduling
techniques
Modular techniques
Rapid throughput
techniques
Repetitive Focus
Flexible people
and equipment
Process-Focused
High variety, low volume
Low utilization (5% to 25%)
General-purpose equipment
Product-Focused
Low variety, high volume
High utilization (70% to 90%)
Specialized equipment
Supportive
supply chains
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22. PROCESS FOCUS
REPETITIVE FOCUS
PRODUCT FOCUS
MASS CUSTOMIZATION
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23. PROCESS FOCUS
REPETITIVE FOCUS
PRODUCT FOCUS
MASS CUSTOMIZATION
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24. Main differences of the Process Focus
Strategy and other process strategies.
Process Focus
(Low volume,
high variety)
Repetitive Focus
(Modular)
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Product Focus
(High-volume, low-variety)
Mass Customization
(High-volume, high-variety)
Small quantity,
large variety of
products
Long runs,
standardized product
made from modules
Large quantity, small
variety of products
Large quantity, large
variety of products
General purpose
equipment
Special equipment aids
in use of assembly line
Special purpose
equipment
Rapid changeover on
flexible equipment
25. Main differences of the Process Focus
Strategy and other process strategies.
Process Focus
(Low volume,
high variety)
Repetitive Focus
(Modular)
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Product Focus
(High-volume, low-variety)
Mass Customization
(High-volume, high-variety)
Operators are
broadly skilled
Employees are
modestly trained
Operators are less
broadly skilled
Flexible operators are
trained for the
necessary
customization
Many job
instructions as
each job changes
Repetition reduces
training and changes
in job instructions
Few work orders and job
instructions because jobs
standardized
Custom orders require
many job instructions
26. Main differences of the Process Focus
Strategy and other process strategies.
Process Focus
(Low volume,
high variety)
Repetitive Focus
(Modular)
MARTA ALARCÓN TAMAYO JORGE MORENO FUENTES
Product Focus
(High-volume, low-variety)
Mass Customization
(High-volume, high-variety)
Raw material
inventories high
JIT procurement
techniques used
Raw material inventories
are low
Raw material
inventories are low
Work-in-process
is high
JIT inventory
techniques used
Work-in-process
inventory is low
Work-in-process
inventory driven down
by JIT, lean production
27. Main differences of the Process Focus
Strategy and other process strategies.
Process Focus
(Low volume,
high variety)
Repetitive Focus
(Modular)
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Product Focus
(High-volume, low-variety)
Mass Customization
(High-volume, high-variety)
Units move slowly
through the plant
Movement is
measured in hours
and days
Swift movement of unit
through the facility is
typical
Goods move swiftly
through the facility
Finished goods
made to order
Finished goods made
to frequent forecast
Finished goods made to
forecast and stored
Finished goods often
made to order
28. Process Focus
(Low volume, high
variety)
Repetitive Focus
(Modular)
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Product Focus
(High-volume, low-variety)
Mass Customization
(High-volume, high-variety)
Scheduling is
complex, trade-offs
between inventory,
availability,
customer service
Scheduling based on
building various
models from
modules to forecasts
Relatively simple
scheduling, establishing
output rate to meet
forecasts
Sophisticated
scheduling required to
accommodate custom
orders
Fixed costs low,
variable costs high
Fixed costs
dependent on
flexibility of the
facility
Fixed costs high,
variable costs low
Fixed costs high,
variable costs must be
low
Costing estimated
before job, not
known until after
job is complete
Costs usually known
due to extensive
experience
High fixed costs mean
costs dependent on
utilization of capacity
High fixed costs and
dynamic variable costs
make costing a
challenge
30. Multiple choice activities
1. Which of the following statements regarding Dell Computer
is false?
a. Dell is a practitioner of the mass customization process.
b. Dell builds its computers overseas in order to gain a low-cost
advantage.
c. Dell keeps very little inventory of finished goods.
d. Dell utilizes a global supply chain, but assembles its computers in
the U.S.
e. Dell's research focuses on manufacturing issues, not computer part
design
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31. Multiple choice activities
1. Which of the following statements regarding Dell Computer
is false?
a. Dell is a practitioner of the mass customization process.
b. Dell builds its computers overseas in order to gain a low-cost
advantage.
c. Dell keeps very little inventory of finished goods.
d. Dell utilizes a global supply chain, but assembles its computers in
the U.S.
e. Dell's research focuses on manufacturing issues, not computer part
design
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32. Multiple choice activities
2. A job shop is an example of a(n)
a. repetitive process
b. continuous process
c. line process
d. process focus
e. specialized process
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33. Multiple choice activities
2. A job shop is an example of a(n)
a. repetitive process
b. continuous process
c. line process
d. process focus
e. specialized process
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34. Multiple choice activities
3. Three types of processes are
a. goods, services, and hybrids
b. manual, automated, and service
c. process focus, repetitive focus, and product focus
d. modular, continuous, and technological
e. input, transformation, and output
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35. Multiple choice activities
3. Three types of processes are
a. goods, services, and hybrids
b. manual, automated, and service
c. process focus, repetitive focus, and product focus
d. modular, continuous, and technological
e. input, transformation, and output
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36. Multiple choice activities
4. A process focused strategy is commonly used to produce
a. high-volume, high-variety products
b. low-volume, high-variety products
c. high-volume, low-variety products
d. low-variety products at either high- or low-volume
e. high-volume products of either high- or low-variety
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37. Multiple choice activities
4. A process focused strategy is commonly used to produce
a. high-volume, high-variety products
b. low-volume, high-variety products
c. high-volume, low-variety products
d. low-variety products at either high- or low-volume
e. high-volume products of either high- or low-variety
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38. Multiple choice activities
5. Which of the following products is likely to be assembled on a repetitive process
line?
a. automobiles
b. personal computers
c. dishwashers
d. television sets
e. all of the above
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39. Multiple choice activities
5. Which of the following products is likely to be assembled on a repetitive process
line?
a. automobiles
b. personal computers
c. dishwashers
d. television sets
e. all of the above
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40. Multiple choice activities
6. An assembly line is an example of a
a. product-focused process
b. process-focused process
c. repetitive process
d. line process
e. specialized process
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41. Multiple choice activities
6. An assembly line is an example of a
a. product-focused process
b. process-focused process
c. repetitive process
d. line process
e. specialized process
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42. Multiple choice activities
7 Which of the following is false regarding repetitive processes?
a. They use modules.
b. They allow easy switching from one product to the other.
c. They are the classic assembly lines.
d. They have more structure and less flexibility than a job shop
layout.
e. They include the assembly of basically all automobiles.
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43. Multiple choice activities
7 Which of the following is false regarding repetitive processes?
a. They use modules.
b. They allow easy switching from one product to the other.
c. They are the classic assembly lines.
d. They have more structure and less flexibility than a job shop
layout.
e. They include the assembly of basically all automobiles.
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44. Multiple choice activities
8. Utilization in process-oriented facilities is frequently low because
a. the postponement strategy for improving service productivity is being used
b. scheduling in process-oriented facilities is not very complex
c. with high fixed costs, utilization is not very important
d. excess capacity for peak demands is desirable
e. low raw material inventories cause machines to be inactive
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45. Multiple choice activities
8. Utilization in process-oriented facilities is frequently low because
a. the postponement strategy for improving service productivity is being used
b. scheduling in process-oriented facilities is not very complex
c. with high fixed costs, utilization is not very important
d. excess capacity for peak demands is desirable
e. low raw material inventories cause machines to be inactive
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46. Multiple choice activities
9. Which of the following characteristics best describes repetitive focus?
a. It uses sophisticated scheduling to accommodate custom orders.
b. Its output is a standardized product produced from modules.
c. It is too expensive when volumes are low or flexibility is required.
d. It is widely used for the manufacture of steel.
e. Its costs are often known only after a job is done.
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47. Multiple choice activities
9. Which of the following characteristics best describes repetitive focus?
a. It uses sophisticated scheduling to accommodate custom orders.
b. Its output is a standardized product produced from modules.
c. It is too expensive when volumes are low or flexibility is required.
d. It is widely used for the manufacture of steel.
e. Its costs are often known only after a job is done.
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48. Multiple choice activities
10. When done correctly, mass customization
a. increases pressure on supply chain performance
b. helps eliminate the guesswork that comes with sales forecasting
c. drives down inventories
d. increases pressure on scheduling
e. all of the above
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49. Multiple choice activities
10. When done correctly, mass customization
a. increases pressure on supply chain performance
b. helps eliminate the guesswork that comes with sales forecasting
c. drives down inventories
d. increases pressure on scheduling
e. all of the above
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