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Operations Management
Semester One - 2014
Operations
improvement
Direct
Design
Operations
Management
Deliver
Figure 18.1 Operations improvement
Develop
Organizing for
improvement
manages the
improvement
activity
Operations
improvement
makes processes
better
Risk
management
stops processes
becoming worse
Why Improve?
Read the TNT case-study, text page 579...
Process analysis
Information technology
Communities of practice
Training
Service Adhesives
Approaches to improvement
1.
2.
Breakthrough improvement
Actual improvement
pattern
(a)
Performance
Planned
breakthrough
improvements
Continuous
improvement
Time
(b)
Performance
Performance
Combined
breakthrough and
continuous
improvement
Time
(c)
Time
3.
Innovation...
Short-term,
Big
dramatic
steps
Intermittent
Abrupt, volatile
Few champions
Individual ideas & effort
New inventions/theories
Concentrated all eggs in 1
basket
Large investment
Technology
Results for profit
...Kaizen
Effect
Pace
Timeframe
Change
Involvement
Approach
Stimulus
Risks
Practical req.
Effort orientation
Evaluation criteria
Long-term,
undramatic
Small steps
Continuous, incremental
Gradual and consistent
Everyone
Group efforts
Conventional know-how
Spread
Little
investment
People
Process
Approaches to improvement...;
Improvement cycle models
PDCA cycle
DMAIC cycle
Plan
Do
Measure
Control
Act
Check
(a)
(a)
(b)
Improve
Analyze
(b)
The plan-do-check-act
The define-measure-analyze-improve-control
Improvement Cycles...;
Refer to Slack et al,. Pages 584 - 585
i.
i.
ii.
ii.
iii.
iii.
iv.
iv.
v.
Improvement Cycles...;
Refer to Slack et al,. Pages 584 - 585
ii.
iii.
iv.
ii.
iii.
iv.
v.
Performance
Plan
Act
Do
Check
Continuous
improvement
Time
analysis
Flow
charts
Scatter
diagrams
x
Input
Output
x
x
x
x
Cause-effect
diagrams
Pareto
diagrams
x
x
Why-why
analysis
Why?
Why?
Why?
Main Category
Problem/
Desired
Improvement
Cause
Root Cause
16
Cause
Root Cause
Problem/
Desired
Improvement
Product/Manufacturing
Man
Methods
Machine
Five Key
Sources of
Variation
Materials
+ Environment
Measurement
Transactional/Service
People
Procedures
Policies
Five Key
Sources of
Variation
Place
+ Environment
Measurement
Fishbone
Cause and Effect Diagram
Causes
Effect
Main Category
Problem
Cause
Root
Cause
Methods
Problem
Maintenance
Machinery
Manpower