Class2 - 1 Operations Management Class 1: Introduction to...

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Unformatted text preview: 1 Operations Management Class 1: Introduction to OM and Process Analysis Class 2: Process Analysis Process Mapping Bottleneck Analysis 2 Learning Objectives: Class 2 How do we measure process performance? Understand the following concepts: Capacity rate Flow time Bottlenecks Tool : Process Analysis Process mapping Capacity analysis (also called bottleneck analysis) Applications : McDonalds Make-to-order system 3 Process Flow Structures Project Job Shop Batch shop Flow Shop Continuous Flow Low Volume High Variety High Volume Low Variety 4 Flow shops: what do they look like? Fixed (line) flow Product layout Short flow time A D B C B A Product 1 Product 2 = resource 5 Flow shops: what do they look like? Tasks are divided into relatively quick, simple tasks Workers are less skilled More prevalence of automation Higher propensity for unions Facilities are large 6 Flow shops: How they operate All tasks are closely coordinated and interdependent Capacity is easy to measure Products are usually made-to-stock 7 Flow shops: Sources of competitive advantage Primarily cost Some (limited) opportunity to differentiate themselves on service 8 Job shops: What do they look like? Jumbled flow Functional layout Long flow times A B C D Product 1 Product 2 9 Job shops: What do they look like? Tasks are more complex Workers are more skilled (they are experts in a functional area) Less prevalence of automation (non-standard tasks are more difficult to automate) Facilities are small (as compared to flow shops) 10 Job shops: How they operate Tasks are relatively independent, buffered from each other by inventory Capacity is harder to measure Could depend on product mix (more on this later) Products are typically made-to-order 11 Job shop: Sources of competitive advantage Primarily service How well they can meet customers idiosyncratic (varied) needs Some (limited) opportunity to differentiate themselves on service 12 Characteristics of Processes: Job Shop vs. Flow Shop Type of Process Product Volume Product Variety Equipment Speciali- zation Machine Setup Frequency Labor Skills Variable Cost Job Shop Low High Low High High High Flow Shop High Low High Low Low Low 13 Product-Process Matrix Product Process JOB SHOP BATCH ASSEMBLY LINE or FLOW SHOP CONTINUOUS FLOW One of a kind or few Low volume Many products High volume Standard products Very high volume Commodity products PROJECT 14 Product-Process Matrix Product Process JOB SHOP BATCH ASSEMBLY LINE or FLOW SHOP CONTINUOUS FLOW One of a kind or few Low volume Many products High volume Standard products Very high volume Commodity products PROJECT L o w U t i l i z a t i o n L o s t S a l e s 15 Product-Process Matrix Product Process JOB SHOP BATCH ASSEMBLY LINE or FLOW SHOP CONTINUOUS FLOW One of a kind or few Low volume...
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This note was uploaded on 06/08/2010 for the course COMM 296 taught by Professor Dasgupta during the Winter '08 term at The University of British Columbia.

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Class2 - 1 Operations Management Class 1: Introduction to...

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