Production System Configuration and Management

Production System Configuration and Management Designing the structure of production systems involves both technological and organizational variables. Choices in production technology involve: measurement capacity, fractioning capacity, capacity location, outsourcing processes, process technology, a...

Production System Configuration and Management Designing the structure of production systems involves both technological and organizational variables. Choices in production technology involve: measurement capacity, fractioning capacity, capacity location, outsourcing processes, process technology, automation of operations, and the trade-off between volume and variety. Choices in the organizational area involve: defining worker skills and responsibilities, team coordination, worker incentives, and information flow. Production Planning Approaches Push Approach Pull Approach Production occurs based on demand, The production system authorizes either forecasted or present, such as production based on inventory levels. This purchase orders. This approach relies on approach is more reactive, responding to predicting future demand and producing actual demand as it arises. accordingly. Material Requirements Planning (MRP) 1 Master Production Schedule (MPS) An aggregate planning tool for production, coming in two varieties: plans that chase demand and level plans that aim for uniform capacity utilization. 2 Bill of Materials (BOM) A detailed list of all the components and materials needed to produce a specific product. 3 MRP Output A schedule for the materials (components) needed in the production process, managing purchase orders and production orders. Toyota Production System (TPS) SMED (Single Minute Value Stream Mapping Poka-Yoke (Mistake- Exchange of Die) Proofing) A graphical method for A method for reducing analyzing the current state and Any mechanism in lean changeover times, enabling designing a future state of manufacturing that helps an faster production transitions production, identifying waste equipment operator avoid and increased efficiency. and opportunities for mistakes, ensuring product improvement. quality and reducing defects. JIT Production: Beyond Kanban Product Standardization and Modularity Group Technology Simplifying product design and production by using Grouping similar machines and processes together to standardized components and modular assemblies. improve efficiency and reduce setup times. Total Productive Maintenance (TPM) Vendor Rating A proactive approach to maintenance that involves all Evaluating and selecting suppliers based on their employees in keeping equipment in optimal condition. ability to meet JIT requirements, ensuring timely and reliable deliveries. Automated Production Systems Advantages Disadvantages Increased efficiency and productivity High initial investment costs Improved accuracy and consistency Potential for breakdowns and downtime Reduced labor costs Limited flexibility and adaptability Operations Management: A Comprehensive Overview Operations management is a many-sided field including the planning, organization, and control of resources to produce goods or services. It plays a crucial role in ensuring efficient and effective processes within an organization, ultimately contributing to its success. Operations management principles are applicable across various industries, ranging from manufacturing to healthcare, technology, and service sectors. Ba Mathematical Modeling in Operations Management Two key areas where mathematical theory finds applications are operations research and quality management. Operations Research Quality Management Operations research benefits mathematical Quality management, aiming to ensure consistent optimization problems and queue theory to improve product or service quality, relies on a set of tools production efficiency. Mathematical optimization known as the Seven Basic Tools of Quality. These techniques, often drawing from calculus and linear tools, including check sheets, charts, diagrams, algebra, help solve complex allocation and control charts, histograms, scatter diagrams, and scheduling problems. Queue theory, based on stratification, facilitate data analysis, problem Markov chains and stochastic processes identification, and process improvement. (probability), provides visions into waiting times and Approaches like Total Quality Management (TQM) resource utilization in production systems. and Six Sigma emphasize the use of these tools to minimize defects and enhance customer satisfaction. Demand Forecasting and Capacity Planning Demand forecasting, while not strictly an operations problem, holds significant importance in operations management due to its close relationship with production planning. Accurate demand forecasts are crucial for determining production levels, managing inventory, and optimizing resource allocation. Demand forecasting relies on statistical methods to predict future demand based on historical data, market trends, and other relevant factors. 1 Safety Stock 2 Push Systems 3 Capacity Planning Safety stocks, used to guard Push systems, characterized Capacity planning involves against uncertainties in by production planning ranking production demand, are often calculated based on anticipated capabilities with market based on normal distribution demand, rely heavily on demands. Accurate demand modeling of demand accurate demand forecasts. forecasting plays a crucial variations. This helps ensure Orders are released ahead of role in determining the that products are available to actual customer orders, optimal capacity levels meet customer needs, even based on forecasted demand, needed to meet customer during periods of unexpected to ensure timely production needs while minimizing idle demand spikes. and delivery. resources or production bottlenecks. Management: A Comprehensive Overview Management is the administration of an organization, whether it be a business, a not-for-profit organization, or government body. It includes setting the strategy of an organization and coordinating the efforts of its employees or volunteers to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources. The term “management” may also refer to the people who manage an organization. Levels of Management Senior Management Middle Management Lower Management Senior managers, such as the Middle managers, examples of Lower managers, such as Board of Directors, Chief which would include branch supervisors and front-line team Executive Officer (CEO) or managers, regional managers and leaders, oversee the work of President of an organization, set section managers, provide regular employees (or volunteers, the strategic goals of the direction to front-line managers. in some voluntary organizations) organization and make decisions Middle managers communicate and provide direction on their on how the overall organization the strategic goals of senior work. In smaller organizations, will operate. Senior managers management to the front-line the roles of managers have much provide direction to the middle managers. wider scopes. managers who report to them. Management Basics Management operates through five basic functions: planning, organizing, coordinating, commanding, and controlling. These functions are essential for any organization to achieve its goals and objectives. Business Process Management is a systematic approach to managing and improving business processes. It involves identifying, analyzing, designing, implementing, and monitoring processes to ensure they are efficient, effective, and aligned with the organization's strategic goals. Ba Planning Planning is the first and most important function of management. It involves deciding what needs to happen in the future and generating plans for action. This includes setting goals, identifying resources, and developing strategies to achieve those goals. Effective planning is crucial for any organization to succeed. It provides a roadmap for the future and helps to ensure that everyone is working towards the same objectives. Strategic Planning Operational Planning Contingency Planning Strategic planning involves Operational planning focuses Contingency planning involves setting long-term goals and on the day-to-day activities of developing backup plans in developing strategies to the organization. This includes case something unexpected achieve them. This is typically developing plans for specific happens. This is important for done by top-level managers tasks, allocating resources, and any organization to be prepared and involves considering the setting deadlines. Operational for unforeseen circumstances organization's overall mission, planning is typically done by and to minimize the impact of vision, and values. middle-level managers and any disruptions. involves working with first-line managers to ensure that tasks are completed efficiently and effectively. Organizing Organizing is the second function of management. It involves making sure the human and nonhuman resources are put into place to achieve the organization's goals. This includes creating a structure, assigning responsibilities, and delegating tasks. Effective organizing is essential for any organization to function smoothly and efficiently. It ensures that everyone knows their role and responsibilities and that resources are used effectively. Human Resources Nonhuman Resources Human resources are the people who work for the Nonhuman resources include all of the physical organization. This includes employees at all levels, and financial assets that the organization uses to from entry-level workers to senior executives. operate. This includes equipment, facilities, Effective organizing involves recruiting, hiring, technology, and financial capital. Effective training, and developing employees to ensure that organizing involves acquiring, managing, and the organization has the right people in the right maintaining these resources to ensure that the roles. organization has what it needs to operate effectively. Coordinating Coordinating is the third function of management. It involves creating a structure through which an organization's goals can be accomplished. This includes establishing communication channels, coordinating activities, and resolving conflicts. Effective coordinating is essential for any organization to work together effectively and efficiently. It ensures that everyone is on the same page and that tasks are completed in a timely and coordinated manner. 1 Communication 2 Collaboration 3 Conflict Resolution Effective communication is Collaboration is essential for Conflict is inevitable in any essential for coordinating coordinating activities. This organization. Effective activities. This includes involves working together to coordinating involves ensuring that everyone has achieve common goals and developing strategies for the information they need to sharing information and resolving conflicts in a do their jobs and that there are resources. Effective constructive and productive clear channels for collaboration can help to manner. This can help to communication between improve efficiency and maintain a positive and different departments and effectiveness. productive work teams. environment. Commanding Commanding is the fourth function of management. It involves determining what must be done in a situation and getting people to do it. This includes providing direction, motivating employees, and holding them accountable for their performance. Effective commanding is essential for any organization to achieve its goals. It ensures that employees are motivated and engaged and that they are working towards the same objectives. Leadership Motivation Accountability Leadership is a key aspect of Motivation is essential for Accountability is essential for commanding. Effective leaders getting employees to do their ensuring that employees are inspire and motivate their best work. Effective managers responsible for their actions. employees, provide clear use a variety of techniques to Effective managers hold their direction, and create a positive motivate their employees, such employees accountable for their and productive work as setting goals, providing performance and provide them environment. feedback, and recognizing with the support they need to achievements. succeed. Controlling Controlling is the fifth and final function of management. It involves checking progress against plans. This includes monitoring performance, identifying deviations from plans, and taking corrective action. Effective controlling is essential for any organization to stay on track and to achieve its goals. It ensures that the organization is operating efficiently and effectively and that any problems are identified and addressed promptly. Monitoring Performance Tracking progress against goals and objectives. Identifying Deviations Identifying any differences between actual performance and planned performance. Taking Corrective Action Taking steps to address any deviations from plans and to ensure that the organization stays on track.