Recent Trends in Production ManagementManagementUNIT 7

Productivity and Types

Inputs

Outputs =ty Productivi

It measures the efficiency of the conversion system

•Partial measures– output/(single input)

•Multi-factor measures– output/(multiple inputs)

•Total measure– output/(total inputs)

Inputs

Types of Productivity

Productivity Example

Japanese Management OverviewOverview

A revolution in manufacturing techniques and philosophies

JIT, TQC, Kanban, Kaizen

Why Japanese?

# Aware of more competitive world – wide market in early 70s in U.S.

# Condition of U.S. and Canadian businesses Vs Japanese # Condition of U.S. and Canadian businesses Vs Japanese companies

Historical and political perspective

# Postwar Reindustrialization

# The Role of Government – Ministry of International # The Role of Government – Ministry of International Trade and Industry (MITI)

Japanese Management

# Centered on management-employee interaction

# Japanese management style and employee # Japanese management style and employee involvement

Japanese Management Styleby William Ouchi

JAPANESE ORGANIZATION

Lifetime employment

Slow evaluation and promotion

AMERICAN ORGANIZATION

Short-term employment

Rapid evaluation and promotionSlow evaluation and promotion

Nonspecialized career paths

Collective decision making and responsibility

Rapid evaluation and promotion

Specialized career paths

Individual decision making and responsibility

Japanese Management Styleby Richard Pascale and Anthony Athos

HARD S

Structure

Strategy

SOFT S

Skills

StaffStrategy

Systems

Staff

Subordinate goals

Style

Total Quality Management

TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction.

Continuous Improvement

OBJECTIVE

PRINCIPLES Customer FocusProcess

ImprovementTotal InvolvementCustomer Focus

ImprovementTotal Involvement

ELEMENTSLeadership, Education and Training, Communications,

Measurement, Supportive Culture, Reward and recognition

Kaizen SystemKaizen SystemPeople Oriented Approach

What Does Kaizen Mean?

KAI ZEN

To modify, to change + Think, make good, make better+

To modify, to change + Think, make good, make better

= KAIZEN

Make it easier by studying it, and making the improvement through elimination of waste.

Kaizen Management

A selection of better means for a better method of achieving an objective

An accumulation of small changesAn accumulation of small changes

3 steps: continuous improvements1. Problem recognition

focus small problems on the workplace rather than problems like shortage of manpower, sales plan unachieved…manpower, sales plan unachieved…

2. Problem SolvingIshikawa Diagram

3. ImplementationSuggestion system

Suggestion system

Workers’ responsibilityProblem recognitionProblem solvingProblem solvingImplementation

Management responsibilityImplementationReward Recognition

Unneeded equipment, tools, furniture; unneeded items on walls, bulletins; items blocking aisles or stacked in corners; unneeded inventory, supplies, parts; safety hazards

Items not in their correct places; correct places not obvious; aisles, workstations, & equipment locations not indicated; items not put away immediately after use

Floors, walls, stairs, equipment, & surfaces not

Keep only what you need

A place for everything and everything in its place

Cleaning, and looking

Seiri(sort)

Seiton(set in order)

5S Scan Goal Eliminate or Correct

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Floors, walls, stairs, equipment, & surfaces not lines, clean; cleaning materials not easily accessible; labels, signs broken or unclean; other cleaning problems

Necessary information not visible; standards not known; checklists missing; quantities and limits not easily recognizable; items can’t be located within 30 seconds

Number of workers without 5S training; number of daily 5S inspections not performed; number of personal items not stored; number of times job aids not available or up-to-date

Cleaning, and looking for ways to keep clean and organized

Maintaining and monitoring the first three categories

Sticking to the rules

Seisou(shine)

Seiketsu(standardize)

Shisuke(sustain)

Minimizing Waste: Kanban Production Control Systems

Withdrawal kanban

Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place

This puts the system back were it was before the item was pulled

Storage Part A

Storage Part AMachine

CenterAssembly Line

Material Flow

Card (signal) FlowThe process begins by the Assembly Line people pulling Part A from Storage

Production kanban

Flexible Manufacturing System

# Flexibility The capability of a manufacturing system to adapt successfully to changing environmental conditions adapt successfully to changing environmental conditions and process requirements.

Definition

FMS is a computer-controlled process technology suitable for producing a moderate variety of products in moderate volumes.products in moderate volumes.

- “A system that consists of numerous programmable machine tools connected by an automated material handling system”

Flexible Manufacturing System (FMS) offers manufacturers a flexible and reliable system to control and monitor their manufacturing process. By using FMS, manufacturers a flexible and reliable system to control and monitor their manufacturing process. By using FMS, manufacturers can produce customized products at a faster rate, making it easier for them to meet market demand.