ABUSMAA1-MODULE-3.pdf

ABUSMAA 1 OPERATIONS AR. ANTHONY M. PLA OPERATIONS The ultimate purpose of business. Making products Providing service  The Problem-Solving Framework for Operations Five Issues that arise when trying to produce a product or service: 1. CAPACITY- How Much can I produce? 2. SCHEDULING...

ABUSMAA 1 OPERATIONS AR. ANTHONY M. PLA OPERATIONS The ultimate purpose of business. Making products Providing service  The Problem-Solving Framework for Operations Five Issues that arise when trying to produce a product or service: 1. CAPACITY- How Much can I produce? 2. SCHEDULING- How am I going to do it? 3. INVENTORY- How much inventory is there and how can I reduce it? 4. STANDARDS- What do I consider efficient production and quality output? 5. CONTROL- Is the production process working? Each of the five issues raised above can and should be studied in great detail to achieve the most efficient production method.  THE SIX M’s OF CAPACITY 1. METHODS- Have you chosen the best method of accomplishing the operational task? 2. MATERIAL- Are the materials you need available and of good quality? 3. MANPOWER- Do you have well trained and productive workers and supervisors to accomplish your production goal? 4. MACHINERY- Do you have the right tools for the job? 5. MONEY- Is the cash to fund production available as needed? 6. MESSAGES- Do you have a system for sharing accurate and timely information among all members of the team? SCHEDULING GANNT CHART SCHEDULING– In the late 1800s, Henry Gannt postulated that standards should not be set only for the performance of tasks, but also for their scheduling sequence. Optimal timing should be determined so that sequence of production tasks could be efficiently planned, coordinated, and performed. CRITICAL PATH METHOD (CPM) – (1950s) a more sophisticated way of determining optimal scheduling. Used for more complicated production projects that require the coordination of many tasks.  GANNT CHART WEEK 1 2 3 4 5 6 7 8 9 10 Client Meeting Site Inspection Schematic Drawing Pre-Design Development Phase Design Development Phase Post-Design Development Phase Building Permit Phase Construction Phase  INVENTORY THE BALANCING ACT- a complete list of items such as property, goods, in stock, or the contents of a building. A smaller inventory leaves businesses with more cash in hand for other “inventory” that would be needed in fulfilling project objective. Inventory includes not only the investments in materials, but also the investment in labor. 5 Resons for holding inventory: 1. PIPELINE- Inventory on hand to minimize production delays and maximizes efficiency. 2. CYCLE- suppliers have minimum order amounts that are greater than immediate need. 3. SAFETY- Stocks held to avoid shortage because of uncertain production demands. Stockouts cost money when production is halted. 4. ANTHICIPATION- Inventory held in anticipation of unknown demand. 5. SPECULTIVE- Items purchased to beat supplier price increase.  Just-in-time Inventory JUST-IN-TIME (JIT) inventory means materials arrive just in time for production, the Japanese are famous for this, workers requests materials as needed with inventory orders. - Materials are stored in warehouses of suppliers until it is called in by the consumer. - Reason for this: - 1. No storage space - 2. Damages - 3. Theft - 4. Queueing usage. MATERIAL REQUIREMENTS PLANNING (MRP) – The knowledge of production scheduling and inventory control. It is a method for planning and controlling inventories required in a site. It is a sophisticated system to improve efficiency.  STANDARDS and CONTROL 1. QUALITY- in a product or service is not what the supplier puts in; it is what the customer gets out and is willing to pay for. What makes a 'quality' product is not based on how hard it is to make or whether or not it costs a lot of money, as manufacturers typically believe - this is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality. - “Meets the Standards” set by the Architect, Client / Consumer, or Manufacturer. - “ As Expected” 2. WHY SHOULD BUSINESS CARE ABOUT QUALITY? a. Higher Profitability b. More consistent Products and increase efficiency c. Greater Customer Satisfaction d. Risk reduction and protecting your BRAND. e. Lower Cost f. Meeting or exceeding Industry standards g. Reducing Waste h. Increase Staff motivation and Morale THANK YOU!