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is the development of a long-term output and resource plan in aggregate units of measure.
• Managers have a variety of options in developing aggregate plans in the face of fluctuating demand:
- Demand management
- Production-rate changes
- Workforce changes
- Inventory smoothing
- Facilities, equipment, and transportation
is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.
refers to the assignment of start and completion times to particular jobs, people, or equipment.
- Examples: Scheduling restaurant employees, airline crews and planes, sports teams, factory jobs.
refers to determining the order in which jobs or tasks are processed.
- Examples: Emergency room patients, automobile models on an assembly line, outgoing flights on runways.
Makespan is the time needed to process a given set of jobs.
M=C - S
M = Makespan of a group of jobs
C = Completion time of last job in the group
S = Start time of first job in the group
is the difference between the completion time and the due date (either positive or negative).
is the amount of time by which the completion time exceeds the due date.
is the amount of time a job spent in the shop or factory.
Fi =∑pij +∑wij =Ci -Ri Fi = Flow time of job i
∑pij = Sum of all processing times of job i at workstation or area j (run + setup times) ∑wij = Sum of all waiting times of job i at workstation or area j Ci = Completion time of job i
Ri = Ready time for job i where all materials, specifications, and so on are available
Shortest Processing Time (SPT)
- SPT sequencing maximizes resource utilization and minimizes average flow time and work-in- process inventory.
Earliest Due Date (EDD)
- EDD minimizes the maximum job tardiness and lateness.
Gantt charts are useful tools for monitoring schedules. This helps to track jobs that are behind, on, or ahead of schedule.
• Fitness for use is the ability of a good or service to meet customer needs.
• Quality of conformance is the extent to which a process is able to deliver output that confirms to design specifications.
• Specifications are targets and tolerances determined by designers of goods and services.
Point 1: Create a Vision and Demonstrate Commitment
Point 2:Learn the Philosophy
Point 3:Understand Inspection
Point 4:Stop Making Decisions Purely on the Basis of Cost
Point 5:Improve Constantly and Forever
Point 6:Institute Training
Point 7:Institute Leadership
Point 8: Drive Out Fear
Point 9: Optimize the Efforts of Teams
Point 10: Eliminate Exhortations
Point 11: Eliminate Numerical Quotas
Point 12: Remove Barriers to Pride in Work
Point 13: Encourage Education and Self-Improvement Point 14: Take Action
W. Edwards Deming
• Focused on bringing about improvements in product and service quality by reducing uncertainty and variability in goods and services design.
• Higher quality leads to higher productivity and lower costs, which leads to improved market share and long-term competitive strength.
• “14 Points” management philosophy.
• Deming Cycle for improvement—Plan, Do, Study,
• Defined quality as “fitness for use.”
• Advocated use of quality cost measurement.
• Quality Trilogy: Quality planning, quality control,
and quality improvement.
• Focused on defect elimination using statistical
Wrote Quality is Free in 1979, which brought quality to the attention of top corporate managers in the U.S.
Absolutes of Quality Management:
- Quality means conformance to requirements, not elegance.
- There is no such thing as a quality problem.
- There is no such thing as the economics of quality; doing the job right the first time is always cheaper.
- The only performance measurement is the cost of quality, which is the expense of nonconformance.
- The only performance standard is Zero Defects (ZD).
• People view quality by comparing features and characteristics of goods and services to a set of expectations.
• The GAP model recognizes that there are several ways to mismanage the creation and delivery of high levels of quality.
• Quality standards created in 1987 and revised in 1994 and 2000 to improve product quality, improve the quality of operation’s processes, and provide confidence to organizations and customers that quality system requirements are fulfilled.
• Internationally recognized (and sometimes required to do business in certain countries).
• Standardizes key terms in quality and provides a set of basic principles for initiating quality management systems.
is a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and results in a clear financial return for the organization.
dpmo = (Number of defects discovered/opportunities for error) X 1,000,000
epmo = (Number of errors discovered/ opportunities for error) X 1,000,000
• Emphasizing dpmo or epmo as a standard metric that can
be applied to all parts of an organization. • Providing extensive training followed by project team
deployment. • Focusing on corporate sponsors responsible for supporting
team activities. • Creating highly qualified process improvement experts.
A six sigma process
• Ensuring that appropriate metrics are identified early in
the process and that they focus on business results. • Setting stretch objectives for improvement.
1. Flowcharts: Process mapping to identify the sequence of activities or flow of materials/ information in a process.
2. Run Charts and Control Charts: A run chart is a line graph with data plotted over time; control charts include control limits.
3. Checksheets: Simple tools for data collection, ensure completeness.
4. Histograms: Graphically represent frequency of values within a specified group.
5. Pareto Diagrams: Separate the vital few from the trivial many causes; provide direction for selecting projects for improvement.
6. Cause-and-Effect Diagrams: Represent chain of relationships; often called a fishbone diagram.
7. Scatter Diagrams: Graphical component of regression analysis.
The task of quality control is to ensure that a good or service conforms to specifications and meets customer requirements by monitoring and measuring processes and making any necessary adjustments to maintain a specified level of performance.
• Supplier Certification and Management: Ensures conformance to requirements before value-adding operations begin.
• In-Process Control: Ensures that defective outputs do not leave the process and prevents defects in the first place.
• Finished Goods Control: Verifies that product meets customer requirements.
means the people responsible for the work control the quality of their processes by identifying and correcting any defects or errors when they first are recognized or occur.
Process capability refers to the natural variation in a process that results from common causes.
A process capability study is a carefully planned study designed to yield specific information about the performance of a process under specified operating conditions.
1. Eliminate Waste: Eliminate any activities that do not add value in an organization. Includes overproduction, waiting time, transportation, processing, inventory.
2. Increase Speed and Response: Better process designs allow efficient responses to customers’ needs and the competitive environment.
3. Improve Quality: Poor quality reduces yields, requiring extra inventory, processing time, and space for scrap and rework.
4. Reduce Cost: Simplifying processes and improving efficiency translates to reduced costs.
The 5Ss are derived from Japanese terms: seiri (sort), seiton (set in order), seiso (shine), seiketsu (standardize), and shitsuke (sustain).
• Sort: Each item is in the proper place.
• Set in order: Arrange materials so that they are
easy to find and use.
• Shine: Clean work area.
• Standardize: Formalize procedures and practices.
• Sustain: Keep the process going.
are indicators for operating activities that are placed in plain sight of all employees so that everyone can quickly and easily understand the status and performance of the work system.
Total Productive Maintenance (TPM)
• TPM is focused on ensuring that operating systems will perform their intended function reliably.
- Maximize equipment effectiveness and eliminate unplanned downtime.
- Create worker “ownership” of equipment.
- Improve equipment operation through employee
• Just-in-Time (JIT)
• JIT systems are based onpull-production, synchronizing the entire manufacturing process to the final assembly schedule.
• This results in smaller inventory between production stages, lower costs, and less physical capacity requirements.
A Kanban is a flag or a piece of paper that contains all relevant information for an order: part number, description, process area used, time of delivery, quantity available, quantity delivered, production quantity, and so on.
- Kanban cards are circulated within the system to initiate withdrawal and production items through the production process.
- The Kanban cards are simple visual controls.
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