Managing Operations and Improving Quality

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Managing Operations and Improving Quality

• Scott Kreider
• Jennie LaPoint
• Business Essentials Ronald J. Ebert, Ricky W.
  Griffin

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Overview

• Planning, scheduling and controlling operations
• Tools and strategies for total quality management
• Using supply chain strategy to coordinate
  operations

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Operations Planning

• Operations Planning
• Capacity Planning
• Location Planning
• Layout Planning
• Methods Planning
• Operations Scheduling
• Operations Control
• Materials Management
• Tools for Operation Control

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Capacity Planning

• Producing Goods
• Produce just over normal demand
• Intel
• Producing Services
• Low Contact Average Capacity
• High Contact Maximum Capacity

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Location Planning

• Producing Goods
• Proximity to
• Raw Materials
• Labor
• Energy Costs
• Local Regulations and Taxes
• Producing Services
• Located Near Customers

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Layout Planning for Producing Goods

• Productive Facilities
• Process Layout
• Cellular Layout
• Product Layout
• Non-Productive Facilities
• Storage Maintenance
• Support Facilities
• Restrooms, Cafeteria, Parking Lots

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Layout Planning for Producing Services

• Low Contact
• Similar to Good Producing Services
• High Contact
• Layout adjusted for customers

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Quality Planning

• Ensure Products Meet Company Standards
• asq.org

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Methods Planning

• Reduce waste Inefficiency through Methods
  Improvement
• Producing Goods
• Document Process Flow Chart
• Analyze
• Improve
• Producing Services
• Low Contact
• High Contact Develop Procedures

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Scheduling Goods Operations

• Long Term Schedule
• Production Schedule Looking out upwards of a
  year.
• Short Term Schedule.
• Startup
• Advancement Through Different Stages
• Stop

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Scheduling Service Operations

• Schedule both work and workers
• Use charts to facilitate the process
• Gantt Chart
• PERT Charts

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Gantt Chart
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PERT Chart
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Operations Control

• Compare actual results with plans and schedule
• Corrective action if not met
• Materials Management
• Operations Process Control

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Materials Management

• Standardization
• Transportation
• Warehousing
• Purchasing
• Supplier Selection
• Inventory Control

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Tools for Operation Process Control

• Worker Training
• Lean Production Systems
• Just-in-Time Operations
• Material Requirements Planning
• Recipe based approach for production

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Quality Improvement

• Total quality management
• Tools for total quality management

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Total Quality Management

• Planning
• Organizing
• Directing
• Controlling

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Planning

• Performance quality
• Quality reliability

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Organizing

• Everyone must focus on quality
• Assign responsibility to specific departments

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Directing

• Motivate employees
• Quality ownership

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Controlling

• Standards/measurements
• Monitor production

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Tools for Quality Management

• Statistical Process Control
• Quality/Cost studies
• Getting closer to the customer
• ISO 9000
• Process Reengineering
• Outsourcing

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Statistical Process Control

• Control quality by understanding variations
• Control charts

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Quality/Cost Studies

• Internal failures
• External failures

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Tools for Quality Management

• Statistical Process Control
• Quality/Cost studies
• Getting closer to the customer
• ISO 9000
• Process Reengineering
• Outsourcing

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ISO 9000

• International Organization of Standards
• International reference for quality management
  requirements
• Generic management system standards

Sources http//www.iso.org
http//www.connect.ab.ca/praxiom/
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Process reengineering

• Improving productivity, quality
• Low cost, high value

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Tools for Quality Management

• Statistical Process Control
• Quality/Cost studies
• Getting closer to the customer
• ISO 9000
• Process Reengineering
• Outsourcing

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Supply Chain

• Companies work together to create product
• Gain competitive edge
• Supply chain management

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Benefits of Supply Chain

• Reduced costs
• Increased flexibility
• Faster response times
• Increase revenues
• Improve service

Sources http//www.cisco.com/global/UK/solutions/
ent/bus_solutions/scm_home.shtmlbenefits
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Supply Chain Management

• Plan
• Source
• Make
• Deliver
• Return

Source http//www.cio.com/research/scm/edit/01220
2_scm.htmlscm_abc
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Supply Chain Management

• Dell
• FedEx
• UPS
• Oracle

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Review

• Scheduling of goods and services
• Importance of materials management and operations
  control
• Achieving total quality management
• Benefits of supply chain strategy

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Final Thoughts

• Plan ahead
• Emphasis on customer