Manufacturing Environment

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1 Contents Chapter 1 Introduction 1.1 Meaning and Definition... 1 Operations Management in Organization Chart... 2 Objectives of Operations Management... 3 Functions of Operations Management Operations System and Its Environment Operations System and Its Objective... 6 Manufacturing Operations and Service Operations Productivity and Competitiveness Types of Productivity Historical Development of Production and Operations Management Strategic Competitive Priorities of Operations Management Questions Chapter 2 Manufacturing Environment 2.1 Product Design Importance of Product Design Objectives of Product Design Approaches and Concepts to Product Design Operational Issues in Various Stages of Product Life Cycle Product Development Process Frequency of Decision Changes Designing Products for Manufacture and Assembly Process Selection Process Life Cycle Product Process Mix Automation Automated Assembly Systems Automation Issues... 32

2 Advantages and Disadvantages of Automation Process Flow Design Questions Chapter 3 Service Environment 3.1 Meaning and Nature of Service Importance of Well- Designed Service System Service Issues Classification of Services Designing Service Organization Service-System Design Matrix (Service Processes) Service Blueprinting Service Guarantees Emerging Issues (or Challenges) in Product and Service Design Questions Chapter 4 Supply Chain Management 4.1 Supply Chain Strategy Objectives of a Supply Chain Strategy The Need for Supply Chain Management Supply Chain Design Strategy Outsourcing Advantages and Disadvantages of Outsourcing Mass Customization Questions Chapter 5 Forecasting 5.1 Introduction Definition of Forecasting Features of Forecast Elements of a Good Forecast Steps in Forecasting Process... 61

3 5.6 Approaches to Forecasting Forecasts Based on Judgment and Opinion Forecasts Based on Time Series Data Naive Approach Techniques of Averaging Techniques for Trend Techniques for Seasonality Using Seasonal Relatives Computing Seasonal Relatives Techniques for Cycles Associative Forecasting Techniques Accuracy and Control of Forecasts Summarizing Forecast Accuracy Controlling the Forecast Questions Chapter 6 Capacity Planning 6.1 Concept of Capacity Planning Design Capacity Effective Capacity Capacity Planning Decision Importance of Capacity Planning Capacity Planning Process Questions Chapter 7 Aggregate Sales and Operation Planning 7.1 Overview of Sales and Operations Planning Activities Aggregate Operations Plan Objectives of Aggregate Operations Plan Importance of the Aggregate Operation Plan Aggregate Planning Process Master Production Schedule (MPS) Rough Cut Capacity Planning (RCCP)... 99

4 7.6 Scheduling and Control Process Loading Priority Sequencing Detailed Scheduling Expediting Input/Output Control The Aggregate Planning Techniques Trial-and-Error Techniques Using Graphs and Spreadsheets Mathematical Techniques Yield Management Questions Chapter 8 Inventory Systems 8.1 Concept Meaning of Inventory Purpose of Inventory Inventory Costs Dependent vs. Independent Demand Inventory System Basic Economic Order Quantity Models Simple Economic Order Quantity Economic Order Quantity with Discount Economic Order Quantity with No Shortage Economic Order Quantity with Constant Demand Economic Order Quantity with Different Rates of Demand Economic Order Quantity with Finite Replenish (Supply) Rate Economic Order Quantity with Shortage Reorder Point Material Requirement Planning System (MRP) Meaning and Purpose of MRP Advantages and Disadvantages of MRP Materials Requirement Planning System Structure

5 MRP Inputs MRP Processing MRP Output Reports Questions Exercise Chapter 9 Japanese Operation Management 9.1 Overviews of Japanese Management Japanese Management Style Drawbacks of Japanese Management Just In Time Philosophy Introduction Two Philosophy of JIT JIT Implementation Requirements Advantages and Disadvantages of JIT Kanban System KAIZEN System Flexible Manufacturing System Dynamics (FMS) 158 Introduction Characteristics of FMS Advantages and Disadvantages of FMS FMS Dynamic Questions Chapter 10 Waiting Line Theory 10.1 Introduction Definition and Objectives of Waiting Line Theory Basic Terms Problems Involving in Waiting Line Theory Waiting System and its Essential Elements Operating Characteristics of Waiting System Types of Queuing Systems Single Channel System Notations Used in a Queuing System

6 10.9 Different Models (formulae) of Queuing System (Single Channel System) Exercise Chapter 11 Total Quality Management 11.1 Introduction Philosophical Elements Cost of Quality Cost of Prevention Cost of Appraisal Cost of Failure Process Control Procedure Statistical Quality Control (SQC) Objectives of Statistical Quality Control Classification of SQC Control Charts Types of Control Charts Construction of Control Chart for Variables x and R Charts Control Charts for Attributes Acceptance Quality Level (AQL) Acceptance Sampling Producer's and Consumer's Risk Operating Characteristic Curve Construction of OC Curve by Poisson Distribution ISO Contents of ISO Benefits from ISO Questions Exercise Appendices Bibliography