Operations Management... 100 Slides Plan
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Key Words... Transformation Process – In-Output – Macro Operations – Physical Buffering – Operations Strategy – Process Design – Manufactoring – Supply Chain Management – Vertical Integration – Assembly Operations – Capacity Leading Strategy – Product Technology – CAD – Job Design – Capacity Planning – Inventory Management – Economic Order Quantity – Pareto Curve – ABC Analysis – Material Management – Master Production Schedule – Layouting – Production Plan – Just-in-Time – Quality Management – PDCA Cycle – Process Reengineering – Cause Effect Diagram – Pareto Diagram – Why Why Analysis – TQM – Operations Network – Buffer Inventory
Operations Function: Narrow Definition Engineering/ technical Product/service development
Marketing
Operations management Personnel
Purchasing
Accounting and finance
Extent of the operations function
Operations Function: Broad Definition Engineering/ technical Product/service development
Marketing
Operations management Personnel
Purchasing
Accounting and finance Extent of the operations function
Input-Transformation-Output Processes Input transformed resources Materials information customers
Input Facilities staff Input transforming resources
Environment The transformations process Environment
Output
Goods and services
Output: A Mixture of Goods and Services
Pure Services Psychotherapy clinic
Management consultancy
Computer systems services
Tangible Can be stored Production precedes consumption Low customer contact Can be transported Quality is evident Restaurant
Specialist machine tool manufacturer
Aluminium smelting
Crude oil production
Pure Goods
Intangible Cannot be stored Production and consumption are simultaneous High customer contact Cannot be transported Quality difficult to judge
Macro and Micro Operations
Information from customers Computer systems Survey and analysis staff
Wood, steel, plastic, etc. Carpenters Machines
Set and props manufacture
Scenery and props
Marketing and sales
Market forecasts, sales proposales and plans
Broadcasting and programmemaking equipment Test and repair equipment Staff
Engineering
Adapted, maintained and repaired equipment
Micro Operations and Business Processes Micro operations Marketing and sales
Set and props manufacture
Engineering
Production units
Finance and costing
Preparing quotations
Technical support contracts
Music videos
Customer needs fulfilled
Promotional and advertising contracts
Business processes
Customer needs
Programme production
Size of each micro operation‘s contribution to each process
Physical Buffering
Buffer
The operation system
Buffer
e.g. Physical inventories of raw materials and components
Material processors
e.g. Physical inventories of finished goods
e.g. Databases in national and local government
Information processors
e.g. On-line subscriber services of financial data
e.g. Queues and waiting lists at hospitals
Customer processors
Not applicable
Organizational Buffering Staff
Suppliers
Purchasing
Process technology
Funds
The operation function
Marketing
Staff
Customers
A Typology of Operations Implication Low repetition Each staff member performs more of job Less systemization High unit costs
Flexible Complex Match customer needs High unit costs
Changing capacity Anticipation Flexibility In touch with demand High unit costs Short waiting tolerance Satisfaction governed by customer perception Customer contact skills needed Received variety is high High unit costs
Implication
Low
Low
Low
Low
Volume
Volume
Volume
Volume
High
High repeatability Specialization Systemization Capital intensive Low unit costs
High
Well defined Routine Regular Low unit costs
High
Stable Routine Predictable High utilization Low unit costs
High
Time lag between production and consumption Standardized Low contact skills High staff utilization Centralization Low unit costs
Operations Management and Strategy Environment Input transformed resources
Operations strategy
Materials information customers
Input Facilities staff
Input transforming resources
The operation‘s strategic objectives Operations strategy
The operation‘s competitive role and position
Operations strategy Design
Improvement
Planning and control
Environment
Output
Goods and services
The Three Roles of the Operations Function Operations as effector
Operations as follower
Operations as leader
Being the „implementer“ of strategy
Being „appropriate“ for strategy
Being the „driver“ of strategy
OPS
Strategy
Strategy
OPS OPS OPS
Operations must „make strategy happen“ by translating strategic decisions into operational reality
Strategy
Operations must support strategy by developing appropriate objectives and policies for the resources it manages
OPS
Operations must provide the means to achieve competitive advantage
The Role and the Contribution of the Operations Function Give an operations advantage
Redefine the industry‘s expectations Be clearly the best in the industry
Link strategy with operations Adopt best practise Correct the worst problems
Internally supportive
Be as good as competitors Stop holding the organisazion back Stage 1
Externally supportive
Externally neutral Internally neutral
Stage 2
The ability to implement
Stage 3 The ability to be appropriate
Stage 4 The ability to drive strategy
External and Internal Effects on the Performance Objectives Low price high margin, or both
Short delivery lead time
Cost High total productivity
Speed Fast throughput
Quality On-specification products/ services
Internal effects of the five performance objective Error-free processes
Ability to change
Dependable delivery
Dependability Reliable operation
Flexibility Frequent new product/services Wide product/services range Volume and delivery adjustments
The Influences on the Relative Importance of Performance Objectives The influence of the organization‘s customers What are order-winning, qualifying, and less important factors to them?
The influence of the organization‘s competitors How does the operation react to changes in the way competitors behave?
The relative importance of each performance objective to the operation
The stage of the organization‘s products and services in their life cycle Are products and services at their introduction, growth, maturity or decline stage?
Different Competitive Factors and Performance Objectives Competitive factors If the customer value these...
Performance objectives Then, the operation will need to exel at these...
Low price
Cost
High quality
Quality
Fast delivery
Speed
Reliable delivery
Dependability
Innovative products and services
Flexibility (product/service)
Wide range of products and services
Flexibility (mix)
The ability to change the timing or quantity of products and services
Flexibility (volume and/or delivery)
Order-winning and Qualifying Objectives
Order-winnig factors Competitive benefit
Performance
Qualifying factors Competitive benefit
Performance
Less important factors Competitive benefit
Performance
Competitor Activity and the Influence on Performance Objectives Original strategy
Fast delivery Range
Qualifiers
Price
Fast delivery
Qualifiers
Range Price
Performanc e objectives
Competitor‘s strategy Order winners
Order winner
Performanc Speed and e flexibility objectives Alternative strategy
1
Speed
Alternative strategy 2
Alternative strategy 3
Order winners
Fast delivery Range
Order winners
Faster delivery
Order winners
Qualifiers
Price
Qualifiers
Range Price
Qualifiers
Speed and
Performanc e
Speed
Performanc
Performanc
Price Fast delivery Range
Effects of the Product/Service Life Cycle Introductio n
Growth
Product/ service first introduced to market
Product/ service gains market acceptance
Volume
Slow growth in sales
Rapid growth in sales volume
Customers
Innovators
Early adoptors
Markets needs start to be fulfilled Sales slow down and level off Bulk of market
Competitors
Few/ none
Increasingly number
Stable number
Declining number
Variety of product/service designs
Possible high customization or frequent design changes
Increasingly standardized
Emerging dominant types
Possible move to commodity standardization
Likely order winners
Product/ service characteristics performance or novelty
Availability of quality products/ services
Low price dependable supply
Low price
Likely qualifiers
Quality Range
Prince Range
Dominant operations performance objectives
Flexibility Quality
Speed Dependability Quality
Maturity
Range Quality
Cost Dependability
Decline
Market needs largely met Sales decline
Laggards
Dependable supply
Cost
Design Activities in Operations Management The general principles of design in operations
The design of products and services
The design of processes
Concept generation Network design Screening
Layout and flow
Preliminary design Evaluation and improvement Prototyping and final design
Process technology
Job design
Design Screening Concept Large number of design options
Time
Choice and evaluation screens
Uncertainty regarding the final design Certainty regarding the final design
Final design specification
Process Types in Manufacturing Operations Low
High
Volume
High Project
Variety
Jobbing
Batch
Mass Continous
Low
Process Types in Service Operations Low
High
Volume
High Professional services
Variety
Service shops
Mass services
Low
Line of Fit of Process to Volume/Variety Characteristics Manufacturing operations process types
Project
Less process flexibility than is needed so high cost
Jobbing
None
Professional service
Service shop
Batch
Mass
Continuous
Service operations process types
Volume Variety
None
Less process flexibility than is needed so high cost
Mass service
The natural line of process to volume variety characteristics
The Customer-Marketing-Design Feedback Loop Interpretation of expectation
Expectations Marketing
Product/service design
Operations Product/ service specification
Customer
Product/ service
Stages of Product/Service Design Concept generation
Screening
Preliminary design
Evaluation and improvement
Prototyping and final design
The concept
The package
The process
Concept Generation from Internal and External Sources
Internal sources
Analysis of customer needs
External sources
Marketing department
Market surveys
Suggestion from customer contact staff
Suggestion from customers
Ideas from research & development
Actions of competitors
Concept generation
From an Idea to a Concept Idea From The overall shape of the product or service
Adventure holiday for young people
Adventure holiday for young people
A holiday which is
A telefone which is
Function The way in which the product or service operates Purpose The need the product or service is intended to satisfy
• • • • • • • • •
Benefits The advantage the product or service will bring to customers
Idea
One week long Residential Multi-activity Adventure In a safe but Exciting envirnonment For 14 to 16-year-old Boys and girls Away from their parents
• • • • • •
In lower quartile price range Multi-coloured Fashionably styled Easy to use Dual position Capable of use with two carriers
Concept Screening Many concepts
Marketing screen Operations screen Financial screen
Acceptable concepts
Cash
Effect of a Delay in Time to Market Sales revenue Cash flow Delayed sales revenue Delayed cash flow
Time Development costs Development costs of delayed project
Delay in time to market
Delay in financial breakeven
Organization Structures for Design Activity F.M.
F.M.
F.M.
F.M.
F.M.
F.M.
F.M.
F.M.
F.M.
F.M.
F.M.
P.M. P.M. P.M. P.M.
F.M.
F.M.
F.M.
F.M.
F.M.
P.M. P.M. P.M. P.M.
Pure functional organization Increasing project P.M. P.M. P.M. P.M.
orientation
Pure project organization F.M.
F.M.
F.M.
F.M.
P.M. P.M. P.M. P.M.
P.M. P.M. P.M. P.M.
F.M. = Functional Manager P.M. = Project Manager
Total and Immediate Supply Networks
Second-tier suppliers
First-tier suppliers
First-tier customers
Second-tier customers
The Operation
Supply side of the network
The immediate supply network
Demand side of the network
The total supply network
Vertical Integration for an Assembly Operation Downstream vertical integration
Raw materials supplier
Component maker
Assembly operation
Wholesaler
Retailer
Assembly operation
Wholesaler
Retailer
Upstream vertical integration
Raw materials supplier
Stages owned by the organization
Component maker
The Extent of Process Span of Vertical Integration Narrow process span
Raw materials supplier
Component maker
Assembly operation
Wholesaler
Retailer
Wholesaler
Retailer
Wide process span
Raw materials supplier
Stages owned by the organization
Component maker
Assembly operation
The Balance of Internal/External Trade Vertically integrated stages deal only with each other
Raw materials supplier
Component maker
Assembly operation
Wholesaler
Retailer
Wholesaler
Retailer
Vertically integrated stages also sell to/buy from other companies
Raw materials supplier
Stages owned by the organization
Component maker
Assembly operation
Supply- and Demand-Side Factors in Location Decisions Supply-side factors
The operation
Demand-side factors
Which vary in such a way as to influence cost as location varies
Which vary in such a way as to influence customer services/ revenue as location varies
• Labour costs • Land costs • Energy costs • Transportation costs • Community factors
• Labour skills • Suitability of site • Image • Convenience for customer
Capacity-Leading and Capacity-Lagging Strategies Volume (units/week)
Demand
Capacity leads demand
Capacity lags demand
Time
Relationship Between Process and Basic Layout Types
Manufacturing process types
Basic layout types
Service process types
Project processes Fixed-position layout
Professional services
Jobbing processes Process layout Service shop
Batch processes Cell layout
Mass processes Mass service Product layout Continous processes
Volume Variety and Layout Type
High
Volume Low
High
Fixed-position layout
Variety
Process layout Cell layout Product layout
Regular flow more feasible
Flow is intermittet
Low Regular flow more important
Flow becomes continuous
Types of Cell Amount of indirect resources included in the cell High
e.g. Specialist process manufacturing cell
e.g. Plant-within-a-plant manufacturing operation
Internal audit group in a bank
Maternity unit in a hospital
Low
e.g. Small multi-machine manufacturing cell
e.g. Complete componentmanufacturing cell
Joint reference and copying room in a library
Lunch and snack produce area in supermarket
Low
Proportion of the direct resources High needed to complete the transformation included in the cell
Relative Rates of Innovation for Product and Process Technology Process technology
Unco-ordinated
Product technology
Performance maximizing
Systemic Product cost minimizing
High
Rate of innovation
Process technology
Product technology
Low Introduction
Growth Stage of development
Maturity
Volume and Variety Characteristics
Volume
Low High
High Stand-alone NC machine tool
Variety
NC machining centres
Low
Flexible manufacturing systems Flexible transfer lines
Dedicated systems
Increasing Integration of Manufacturing Technologies Designing
Controlling
Handling
Managing
Computer-aided design (CAD)
Computer-aided manufacturing (CAM)
Automated guided vehicles (AGVs) Robotics
Loading Scheduling monitoring
INTEGRATED
CAD/ CAM
INTEGRATED The computer-based systems of other functions, suppliers and customers
FMS
INTEGRATED
CIM INTEGRATED CIE
The Growth in Telecommunication Services
Telegraphie 1850
Telegram Telephony 1880
Colour TV Stereo radio 999 service Private circuit
TV Telex Radio 1930
1970
Cable TV Paging Teletext Multimedia Mobile telephony EDI CCTV Satelite services
1980
Network services Home shopping Cashless services Video games Home banking Video conference Multimedia database Interactive video Telewriting Smart card comms Personal numbering Videotext Mobile videotext Telenewspaper Intelligent network Translation Artificial reality Voice messaging Virtual reality Image transmission Hi-Fi telephony Remote computing Teleworking Voice conference Mobile videophone Video conference ATM Star services Frame relay Alphanumeric paging Speech fax Mobile telephony Archiving Colour fax Centrex Telemetry SDH ISDN X400 LinklineDDSN Telepresence Satelite TV
1990
2000
The Elements of Job Design What tasks? What sequence?
Where to locate
Who else?
What skills
How much autonomy What environmental conditions
How to interface with the facilities?
The Chronology of the Differente Approaches to Job Design before 1900 Division of labour
1900 Scientific management
Operations job design Ergonomics
Behavioural approach
Time
Empowerment
1980 1970
1950
Differente Approaches to Job Design Emphasis on commitment and engagement of staff
Emphasis on managerial control Staff treated as a cost
Division of labour
Scientific management Ergonomics
Behavioural approaches Empowerment
Staff treated as a resource
Self-managed method study
Causes of Seasonality Causes of seasonality
Climatic
Festive
Behavioural
Political
Financial
Some seasonal products and services • Construction materials • Beverages (beer, cola) • Foods (ice-cream, Christmas cakes) • Clothing (swimwear, shoes) • Gardening items (seeds, fertilizer) • Fireworks
• Travel service • Holidays • Tax processing • Doctors (influenza epidemic) • Sport services • Education services
Social
Capacity Planning and Control
Periode t-1
Periode t
Current capacity estimates
Outcome Capacity level
Actual demand and actual capacity
Costs Revenues Working capital Customer satisfaction etc.
Shortages Queues inventory
Periode t+1
Current capacity estimates
Updated forecasts
Decision How much capacity next period?
Outcome Capacity level
Actual demand and actual capacity
Costs Revenues Working capital Customer satisfaction etc.
Shortages Queues inventory
Updated forecasts
Decision How much capacity next period?
Capacity level
Dynamics of Capacity Planning Short-term outlook POOR
NORMAL
GOOD
Outlook < 1
Outlook = 1
Outlook > 1
Lay-off staff
Delay any action
Overtime
Long-term outlook
POOR Hire temporary staff
Outlook < 1
NORMAL
Short-time Idle time
Do nothing
Hire temporary staff
Outlook = 1
GOOD Outlook > 1
Overtime
Make for inventory Hire and make for inventory Short time
Start to recruit
Outlook = Forecast demand / Forecast capacity
Hire staff
The Position of Inventory I
(a) single-stage inventory system
Stock
Sales operations
e.g Local retail store Suppliers
The Position of Inventory II (b) Two-stage inventory system
Central depot
Distribution
Local distribution point
e.g. Automotive parts distributor Suppliers
Sales operations
The Position of Inventory III (c) Multi-stage inventory system
Input stocks
Stage 1
WIP
Stage 2
e.g. Television manufacturer Suppliers
WIP
Stage 3
Finished goods stock
The Position of Inventory IV (d) Multi-echelon inventory system
Garment producers Cloth producers Yarn producers
Regional warehouses Retail stores
Inventory Profile Steady and predictable demand (D)
Inventory level
Order quantity Q
Slope = demand rate
Average inventory = Q / 2
Time
Q/D Instantaneous deliveries at rate of D / Q per period
Economic Order Quantity
Costs
Total costs
Holding costs
Order costs Economic order quantity (EOQ)
Order quantity
Cumulative % of total value
Pareto Curve for Items in a Warehouse
Class A items
Class B items % of total number of items
Class C items
Supply Chain Management Second-tier suppliers
First-tier suppliers
First-tier customers
Second-tier customers
The Operation
Supply side
Demand side
Purchasing and supply management
Physical distribution management Logistics
Materials management Supply chain management
The Purchasing Function Suppliers
Purchasing function
Prepare request for quotations
Suppliers Prepare quotations
Quotations
Produce goods/ services
The internal operation
Order
Request for products and services
Select the preferred supplier
Discuss with the operations
Prepare purchase order
Laise with operations
Delivery goods/ services Inform purchasing function
Receive goods/ services
Input to the operation
The Multi-Echelon Physical System I
Garment manufacturer
Process Inventory
Regional warehouses
Retail stores
Multi-Echelon Physical System II
Factory
Factory
Factory
6 contracts
18 routes
Customer
Customer
Customer
Customer
Customer
Customer
3 contracts
Multi-Echelon Physical System III
Factory
Factory
Warehouse
Customer
Customer
Customer
Factory
12 routes
Warehouse
Customer
3 contracts
Customer
Customer
1 contracts
Responsibilities of Supplier and Purchaser Ex-works
Supplier
Free on board (FOB) Cost and freight (C & F) Cost, insurance & freight (CIF) Delivered
Purchaserâ&#x20AC;&#x2DC;s responsibility Supplierâ&#x20AC;&#x2DC;s responsibility
Purchaser
Free alongside (FAS)
Materials Management
Cash out
Inventory management
Inventory management
Materials processing
Purchasing Raw materials inventory
Materials service flow Information flow
Inventory management
Subassembly Inprocess inventory
Inventory management
Assembly Finished goods inventory
Physical distribution
Cash in
Customers
Suppliers
Materials Management
Material Requirement Planning
Customer orders
Master productions schedule
Forecast demand
Bills of materials
Materials requirements planning
Inventory records
Purchase orders
Materials plans
Works orders
Inputs into the Master Production Schedule Known orders
Key capacity constraints
Forecast demand
Master production schedule
Sister plant demand
Inventory level
R&D demand
Exhibition/ promotion requirements
Spares demand
Safety stock requirements
Different Shapes of Product Structure
A-shape product structure
T-shape product structure
V-shape product structure
Hourglass or X-shape product structure
Closed-Loop MRP Materials plan
Production plan
Master production plan
Materials plan
Capacity plan
Realistic?
Resource requirements plan
Realistic?
Rough-cut capacity plan
Realistic?
Capacity requirements plan
Traditional Flow
(a) Traditional approach â&#x20AC;&#x201C; buffer separate stages
Buffer Inventory Stage A
Buffer Inventory Stage B
Stage C
Just-in-time (JIT) Flow
(b) JIT approach â&#x20AC;&#x201C; deliveries are made on request Orders
Stage A
Orders
Stage B
Deliveries
Stage C
Deliveries
A Typology of Projects
High Multi-nation
Uncertainty
Nation Multiorganization Organization Group
Low Low
Individual
Complexity
High
The Process of Project Planning
Identify activities
Identify relationships and dependencies
Identify schedule constraints
Fix the schedule
Optimize
Estimate times and resources
Effect of Higher Quality on Revenue and Cost Quality up
Service cost down
Image up
Sales volume up
Price competition down
Inspection and test costs down
Complaint and warranty costs down
Scales economies up
Revenue up
Inventory down
Rework and scrap costs down
Productivity up
Operation costs down
Profits up
Capital cost down
Processing time down
The Customer‘s Views of Quality
Gap Customer‘s expectations concerning a product or service
Gap Customer‘s expectations concerning a product or service
Customer‘s perception‘s concerning the product or service
Expectation > perceptions Perceived quality is poor
Customer‘s perception‘s concerning the product or service
Expectation < perceptions Perceived quality is good
Gap Customer‘s expectations concerning a product or service
Customer‘s perception‘s concerning the product or service
Expectation = perceptions Perceived quality is acceptable
Gap Analysis Between Customers‘ Perception and Expectation Previous experiences
Word-of-mouth communications
Image of product or service
Gap 4
Customer‘s expectations concerning a product or service
The customer‘s domain
Is there a gap?
Customer‘s perception‘s concerning the product or service
Gap 1
The actual product or service
Customer‘s own specification of quality
The operation‘s domain
Management‘s concept of the product or service
Organization‘s specification of quality Gap 2
Gap 3
Change in Customersâ&#x20AC;&#x2DC; Needs and the Operationâ&#x20AC;&#x2DC;s Performance over Time Cost
Cost
Dependability Speed
Dependability
Speed
Time
Quality
Flexibility
Performance of the operation Performance of the market
Quality
Flexibility
Good
The Importance-Performance Matrix
Performance against competitors
Better than
Excess
Appropriate Same as
Bad
Improve Worse than
Urgent action
Less important Low
Qualifying Importance for customer
Order winning High
Breakthrough Improvement
Performance
Intended â&#x20AC;&#x17E;breakthroughâ&#x20AC;&#x153; improvements
Actual improvement pattern Time
The PDCA Cycle
Performance
Plan
Act
Do
Check
Path of continous improvement
Time
The Business Process Re-engineering Approach
Activity 1
Activity 2
Activity 3
Activity 4
Micro operations
Customer needs
Customer needs fulfilled
Function 4
Customer needs fulfilled
Function 3
Business processes
Function 2
Customer needs
Function 1
Business processes
Micro operations
Flow Chart for Customer Query Customer phones in with query Telefonist understands query
No
Yes
Answer query over phone
No
Needs an engineer visit
No
Yes Arrange for engineer to visit Yes
No Engineer reports back to manager Important Query/ customer Yes Request central engineer support
Manager understands query Yes
Put trough to relevant engineer
Customer satisfied
Put trough to manager
No
No
Frequency
Cause-Effect Diagram
Wrong prediction Wrong information
Unrecorded modifications
Out of stock Wrong issue
Other reasons Wrong equipment
Causes of unscheduled return
Services performed
Providing medication
Providing night drinks
Providing ashtrays
Locking and unlocking meeting rooms
Providing extra stationery
Providing extra keys
Providing extra linen
Providing glasses for night drinks
Carrying phone messages to meeting rooms
Telefax services
Marketing photocopies
Time (seconds)
Pareto Diagram
Why-Why Analysis Not in budget Lack of training
No time available
Why? High turnover Product spec. documentation complicated
Problem Cause of failure wrongly predicted
Lack of product knowledge
Many new products
Why?
Why?
No analysis of failures No knowledge of system modifications Lack of customer knowledge
No customer records available to engineers
Why?
No analysis of failures
Failure Prevention and Recovery
Failure detection and analysis Finding out what is going wrong and why
Improving system reliability
Recovery
Stopping things going wrong
Coping when things do go wrong
View of Maintenance Costs I
Costs
Total cost
Cost of breakdowns
Cost of providing preventive maintenance
Optimum level of preventive maintenance
Amount of preventive maintenance
View of Maintenance Costs II
Costs
Total cost
Cost of breakdowns
Cost of providing preventive maintenance
Amount of preventive maintenance
Failure Curves for Two Machines
Probability of failure
Machine A
Machine B
x
y Time
The Stages in Failure Planning Discover
Act
Learn
Plan
The fact – What? Possible consequences – Who?
Inform – Tell Contain – Stopp Follow up - Check
Find – The root cause? Prevention – Engineer out
Failure analysis – Possibilities Recovery planning - Procedures
Total Quality Management
• • • • •
Whole operation involved Quality srategy Teamwork Staff empowerment Involves customers and suppliers
• • • •
Quality systems Quality costing Problem solving Quality planning
Inspection
Quality control
• Statistical methods • Process performance • Quality standards • Error detection • Rectification
Quality assurance Total quality management
Costs to rectify error
The Cost of Errors in Different Development Stages
Concept
Design
Prototype
Pilot production
Stage in development and launch process
Market use
The TQM Quality Cost Model
Total cost of quality
Costs of quality
External failure
Internal failure
Appraisal
Prevention Time
Group-based Improvement Quality improvement team
Quality circle
Task force
Improvement task selection
Group
Membership of group
Voluntary
Management direction
Little/ None
Total
Urgent of improvement task
Low
High
Established by management
Assigned by management
Effectiveness of the TQM initiative
The Effectiveness of the TQM Initiative
Time Introduction
Learning and understanding
Growth
Increasing enthusiasm
Leveling off
Disillusionment
Starting to hit the more difficult problems
Waning enthusiasm
Repackaging
Attempts to revitalize the programme
The European Quality Award Model
People management 9%
Leadership 10 %
Policy and strategy 8%
People satisfaction 9%
Processes 14 %
Customer satisfaction 20 %
Resources 9%
Impact on society 6%
Enablers 50 %
Results 50 %
Business results 15 %
Sweeney‘s Generic Strategies
Marketer
Innovator
Emphasizes • Quality • Dependability • Range
Emphasizes • Quality • Product/service • Performance • Speed • New product/service • Development
Caretaker
Innovator
Emphasizes • Price/ cost • Dependability • Quality
Emphasizes • Quality • Product/service • Performance • Flexibility • Speed
Traditional
Enhanced
Strategic change involves enhancing the operation‘s infrastructure
Basic
Customer service criteria
Enhanced
Strategic change involves enhancing The operation‘s structure
International Operations Network Configurations 1. Home country operations
2. Regional operations
3. Global co-ordinated operations
4. Combined regional and global co-ordinated operations
The Performance Objective Trade-Off
Performance objective 2
Performance objective 2 Performance objective 1
Performance objective 1
In the short term one performance objective can be traded off with another
So one aspect of performance can be improved at the expense of others
Common Forecasting Techniques Non-causal techniques
Objective techniques
Time series analysis
Regression
â&#x20AC;˘ â&#x20AC;˘
Economic models
Moving-average smoothing Exponential smoothing
Intuition
Subjective techniques
Causal techniques
Individual expert opinion Group expert opinion (e.g. Delphi forecasting)
Demand
Trend-, Seasonality and Random Variation Analysis
Demand
Time
Demand
Time
Time
The Standard Time Approach
Relaxtion Relaxtion Relaxtion
Working Working Working
Light job
Medium job
Heavy job
One standard minute or hour of work
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