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Class10 - Operations Management Class 1: Introduction to OM...

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1 Operations Management Class 1: Introduction to OM and Process Analysis Class 2: Process Analysis Class 3 and 4: Process Analysis Continued Class 5 and 6: Variability in Processes Class 7: Forecasting Class 8: Quality Management, JIT, MRP, and ERP Class 9: Project Management Class 10: Midterm Review
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2 Midterm Information Content: Covers Class 1 – 8 Date: Monday, May 31, 2010 Time: 1:00pm – 3:30pm Location: CHEM 200 What can you use during the exam? One “cheat sheet” (you can write anything you want on both sides of a single A4 sheet of paper) Please make your own cheat sheet. Non-programmable calculator
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3 What is Operations Management (OM)? Inputs Outputs Transformation Transformation Process Operations Management Operations Management is the management (design, operation, and improvement) of the transformation processes that create value (= quality / price) .
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Processes can be viewed at many levels 4 BUY MAKE/ CREAT E SELL I nputs Output s A process can consist of several sub- processes
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5 Trade-offs, Operations Frontier, and Process Innovation High Quality/Flexibility Trade-off Improvement Trade-off Innovation Low High Process Efficiency /Productivity Low New operations frontier
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6 Types of Processes Project Job Shop Batch shop Flow Shop Continuous Flow Low Volume High Variety High Volume Low Variety
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7 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 Low Utilization Lost Sales Space shuttle French restaurant Jeans Car assembly Petroleum refining High Capital Costs Opportunity
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Key Steps in Process Analysis Step 1 : Deter mine the Pur pose of the analysis 8 Step 2 : Process mapping (Define the process) Determine the flow units Determine the tasks (sub-processes), and the sequence of the tasks Determine the time for each task Determine which process are used in each task Determine here inventory is kept in the process Record this through a process flow diagram (Linear flow chart, Swim-lane (deployment) flow chart, Gantt chart) Step 3 : Capacity Analysis (also called Bottleneck Analysis ) Determine the capacity of each resource, and of the process
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9 Gantt Chart Time Cashier Worker 1,Toaster Worker 2 Worker 3 Worker 4 Worker 5 Place an order Toast buns Add dressings Add meat patties Package Deliver Resources Activities Time Span 10s 8 s 6s 2s 8 s 2s
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10 The Bottleneck A bottleneck is a resource that limits the capacity rate of the entire process To increase capacity rate of the entire process, focus on increasing capacity of the bottleneck The bottleneck can change when capacity is added Adding capacity to non-bottlenecks does not increase the capacity of the entire process (but may decrease flow time)
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11 Important Concepts Throughput Rate or Flow Rate: the actual rate at which units flow through a process Capacity rate: the maximum rate at which units can
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Class10 - Operations Management Class 1: Introduction to OM...

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