Main themes of operations management Flashcards
What are the key principles in POM
1) In 1960 it was MRP(material requirement planning ) a push strategy
2) In 1980 JIT (Just in time) a pull strategy
3) In 1990 QRM ( Quick response manufacturing) pull & push strategy
4) In 1990 TOC (Theory of constraints) bottleneck strategy
Explain the main strats
Mrp:
- used to
determine the number of parts, components and
raw materials needed to produce a product
- It provides a schedule specifying when each type of
part, component or raw material or product should
be ordered or produced - Products generated by MRP are pushed to the
market
JIT:
- Implemented by the japanese in order to catch up to americans
- How they did it: Set up reductions, train workers, quality control, fool proofing, customers get only what they need
- Zero inventories
- The seven zeros: zero defects, excess, setups, breakdown, excess handling, lead time, surging
- Implementing JIT with Kaizen: Constant search for the better or continuous improvement and Jidoka: any problems are self-evident
-JIT insists that any production process should be a mirror image of the real demand
- JIT implements Total quality management wich means that evrybody is involved in a continuous process with data and knowledge
- JIT attacks waste of time and decreases scraps and inventories, zero stock politics and permits a streamlined flow
- they decreased a 3 hours process to 3 minutes
QRM (Quick response Manufacturing)
- The company’s strategy is focused on reduction of lead time in all aspects of the company’s operations
- QRM defers by explaining why lead time reduction is important and why many of the main startegies are actually lengthening rather than shortening lead-times. In JIT reduction and speed are ommited
- QRM affects all operations of the company from manufacturing to office operations
- Push and pull
- contrary to JIT, QRM may respond to a large variability
TOC (Theory of constraints)
- The constraint (bottleneck) determines the throughput
-
Why does speed matters in POM?
Speed helps in:
- Lead time reduction
- Inventory cost reduction: hold less inventory for less time
- Increased flexibility and responsiveness: Companies are more responsive to market changes and demands
- Enhances customer satisfaction
What are the main historical periods of OM, what we’re the shifts in thinking in the evolution
1950 Scale: high volume, low unit cost, division of labour
1960 Cost: activity based costing. foundation of layout system
1970 Quality: focus from product to process
1980 Speed: JIT, speed based competition
1990 Modularity: product design and platforms. one platform builds several products
2000 Sustainability: self-regulation, ethic in business
2010 Digitalization: Iot, 3D-printing
2020 open ecosystems
What are the main principles or laws of operations management? What is Little’s law, how to apply it?
Little’s law is the average number of items in a queuing system how much time these items stay in the system and the rate at which they arrive in the system.
Little’s law’s formula is:
WIP=LT x TPR
where:
WIP (work in progress): the average number of items within the system
LT (lead time): The average time an item spends in the system from start to finish
TPR (throughput rate): The average rate at which items arrive at and leave the system
if we reduce LT the:
- profit increases
- inventory decreases
- customer satisfaction increases
Little’s law is useful to understand and optimize systems where items flow through various stages it helps with:
- Inventory management
- Process Improvement
- Capacity planning
it helps managers make informed decisions to improve efficiency and productivity
What is Swift Even Flow
“Swift even flow” is a concept in operations management that emphasizes the smooth and continuous movement of products or services through a production process without significant delays or bottlenecks.
Key aspects of swift even flow:
- Continuous production
- Consistent workloads
- reduction of variability
- Just in time
- Lean manufacturing principles
