Operations Analysis 02

• Operations Analysis


  study of an operation or group of related operations for the purpose of analyzing their efficiency and effectiveness so that improvements can be developed
• Objectives of Operations Analysis

  
• Finding the Best Vendor: Keiretsu

  treating suppliers and customers as part of the company
• Finding the Best Vendor: Keiretsu


  a form of business and manufacturing organization that links businesses together
• Toyota Motor Corporation

  • Central to TPS is a continuing effort to produce products under ideal conditions
  • Respect for people is fundamental
  • Small building but high levels of production
  • Subassemblies are transferred to the assembly line on a JIT basis
  • High quality and low assembly time per vehicle
• Toyota Motor Corporation

  • Largest vehicle manufacturer in the world with annual sales of over 9 million vehicles
  • Success due to two techniques, JIT and TPS
  • Continual problem solving is central to JIT
  • Eliminating excess inventory makes problems immediately evident
• integrated socio-technical system


  developed by Toyota, that comprises its management philosophy and practices.
• JIT


  is a philosophy of continuous and forced problem solving via a focus on throughput and reduced inventory
• TPS


  emphasizes continuous improvement, respect for people, and standard work practices
• Lean


  production supplies the customer with their exact wants when the customer wants it without waste
• Throughput Time


  the time for goods to go through the whole process
• Cycle Time


  the time it takes for goods to go through one work step in the production process
• TPS


  emphasizes employee learning and empowerment in an assembly-line environment
• Lean Operations 


  emphasize understanding the customer
• JIT


  emphasizes forced problem solving
• Just-In-Time (JIT)

  • Powerful strategy for improving operations
  • Materials arrive where they are needed when they are needed
  • Identifying problems and driving out waste reduces costs and variability and improves throughput
  • Requires a meaningful buyer- supplier relationship
• Push

  Make all we can just in case
• Pull


  Make what's needed when we need it
• Push

  • Production Approximation
  • Anticipated Usage's
  • Large Lots
  • High Inventories
  • Waste
  • Management by Firelighting
  • Poor Communication
• Pull

  • Production Precision
  • Actual Consumption
  • Small Lots
  • Low Inventories
  • Waste Reduction
  • Management by Sight
  • Better Communication
• Push Supply Chain Strategy

  • Applicable in cases where demand uncertainty is negligible.
  • Production and distribution rely on long-term forecasts.
  • Businesses could not meet changing demands.
  • Businesses have to possess massive inventory.
  • Previous order patterns from the retailer warehouse determine the order quantity
• Pull Supply Chain Strategy

  • Applicable in cases with higher uncertainty regarding demands.
  • Production and distribution depend on consumer demand.
  • Businesses could use point of sale data for anticipating demand.
  • Businesses don't need any inventory for pull supply chain strategy.
  • The order quantity is based on the requirements of a particular order.
• TAKT TIME

  • Aligns production with customer demand
  • Centers around specific work orders
  • Effective to determine over/ underproduction.
• CYCLE TIME

  • Average production time for the final product
  • Include actual production time
  • Effective to determine bottlenecks.