MGMT 3613 Operations Management, Chapter 14 Notes

MGMT 3613 | Operations Management Chapter 14 Notes 1. Explain what is meant by the term lean operations system. -Lean operations system is a design system that functions well with minimal levels of inventories, minimal waste, minimal space, and minimal transactions. It is a system that is not prone to disruptions and is flexible in terms of the product variety and range of volume that it can handle. It ingrained in both the product and the process. 2. List each of the goals of JIT and explain its importance. -A. Eliminate disruptions a. Disruptions have a negative influence on the system by upsetting the smooth flow of products through the system, and they should be eliminated. -B. Make the system flexible a. A flexible system is one that is robust enough to handle a mix of products, often on a daily basis, and to handle changes in the level of output while still maintaining balance and throughput speed. -C. Waste a. Waste represents unproductive resources; eliminating waste can free up resources and enhance production. 3. List and briefly describe the building blocks of JIT. -Product Design a. Four elements of product design are important for JIT and they are: standard parts, modular design, highly capable production systems with quality built in, and concurrent engineering. -Process Design a. Seven aspects of process design are particularly important for JIT system and they are: small lot sizes, setup time reduction, manufacturing cells, limited work in process, quality improvement, production flexibility, and little inventory storage. -Personnel/organizational elements a. There are five elements of personnel and organization that are particularly important for JIT systems and they are: workers as assets, cross-trained workers, continuous improvement, cost accounting, and leadership/project management. -Manufacturing planning and control a. Six elements of manufacturing planning and control are particularly for JIT systems: level loading, pull systems, visual systems, close vendor relationships, reduced transaction processing, and preventive maintenance and housekeeping. 4. List the benefits of the JIT system. -require minimal inventory to operate, deliveries are small but many, there are many setups and has a short runs, partners with vendors, and workers are the assets 5. Outline the considerations important in converting a traditional mode of operations to a JIT system. -1. make sure top management is committed to the conversion and that they know what will be required. -2. studies the operations carefully -3. Obtain the support and cooperation of workers -4. begins by trying to reduce setup times while maintaining the current system. -5. Gradually convert operations, beginning at the end of the process and working backward -6. As one of the last steps, convert suppliers to JIT and be prepared to work closely with them. -7. Be prepared to encounter obstacles to conversion. 6. List some of the obstacles that might be encountered when converting to a JIT system. -Management may not be totally committed or may be unwilling to devote the necessary resources to conversion. -workers and/or management may not display a coorperative spirit. -Suppliers may resist for several reasons: a. Buyers may not be willing to commit the resources necessary to help them adapt to the JIT systems. b. They may be uneasy about long-term commitments to a buyer c. Frequent, small deliveries may be difficult, especially if the supplier has other buyers who use traditional systems. d. The burden of quality control will shift to the supplier e. Frequent engineering changes may result from continuing JIT improvements by the buyer.