Operations

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OPERATIONS

1

INTRODUCTION

:

operations are those activities, typically carried out in a factory, which transfo

s are those activities which process customer transactions but which do not invol

Sec 22 OPERATIONS

2

QUALITY IN THE OPERATIONS FUNCTION OF THE FUTURE

t. oduct to another quickly, manufacturing goods and producing services to customer o ercent in 1992

Sec 22 OPERATIONS

3

PLANNING FOR QUALITY DURING OPERATIONS

rds cover important matters such as process control, inspection and testing, mater

e manufacturing function. Similarly, the service industries show variety in assign

al philosophy of reliance on systems versus reliance on people.

Sec 22 OPERATIONS

4

INITIAL PLANNING FOR QUALITY

ise. These include compatibility of the technology with existing operations, diffi

Sec 22 OPERATIONS

5

INITIAL PLANNING FOR QUALITY

there is a clear advantage to having a new product design reviewed for feasibili

s:

roducible. The emphasis is on reducing the total number of parts, the number of di its performance will tolerate uncontrollable variations in factors internal and e es that have the capability to manufacture products with basic and special charac

Sec 22 OPERATIONS

6

INITIAL PLANNING FOR QUALITY

classification uses criteria based on the impact of the quality characteristic o dialogue between the Product Development and Manufacturing Planning Departments

Sec 22 OPERATIONS

7

INITIAL PLANNING FOR QUALITY

gical sections called workstations. For each workstation they prepare a formal do variables or parameters and product results. Such knowledge enables the planner

kely remain that way until the process variables are studied in depth.

Sec 22 OPERATIONS

8

INITIAL PLANNING FOR QUALITY

Sec 22 OPERATIONS

9

ROCESS CAPABILITY : THE CONCEPT

output of the process may be a physical good, such as an integrated circuit chip

he process. The measurement may be made on a physical property such as the pH valu

Sec 22 OPERATIONS

10

ROCESS CAPABILITY : THE CONCEPT

o the product uniformity resulting from a process that is in a state of statistic

oduct (goods or service) because it is product variation, which is the end result,

pability: Some practitioners distinguish between these two terms.

producibility under one set of process conditions (e.g., one operator, homogeneous

producibility over a long period of time with normal changes in workers, materials

Sec 22 OPERATIONS

11

ROCESS CAPABILITY : THE CONCEPT

pability Information . Process capability information serves multiple purposes:

he extent of variability that processes will exhibit. om among competing processes or equipment, that which is best to meet the specific interrelationship of sequential processes. quantified basis for establishing a schedule of periodic process control checks a ries of causes of defects during quality improvement programs. basis of quality performance requirements for purchased product or equipment.

Sec 22 OPERATIONS

12

ROCESS CAPABILITY : THE CONCEPT

ation, we can measure a sample, summarize the data in a histogram, and compare the

pattern has a cause that, once determined, can shed much light on the variability

Sec 22 OPERATIONS

13

ROCESS CAPABILITY : THE CONCEPT

Process capability = 6 σ

en changes. If the process is centered at the nominal specification and follows a

an be made. The majority of industrial processes, however, do exhibit drift and do

ut it is not universally true.

Sec 22 OPERATIONS

14

ROCESS CAPABILITY : THE CONCEPT

ications. For processes that are in a state of statistical control ,a comparison o

average of the process is not centered between the upper and lower tolerance lim

Sec 22 OPERATIONS

15

ROCESS CAPABILITY : THE CONCEPT

he likely courses of action for each. Note that in all these cases the average of

e process can do under certain conditions.

ess is doing.

Sec 22 OPERATIONS

16

PROCESS CAPABILITY MEASUREMENT

ata consist of groups of measurements (rational subgroups) selected in regular seq

perating without assignable causes of variation is said to be in a state of stati

Sec 22 OPERATIONS

17

PROCESS CAPABILITY MEASUREMENT

ontrol points included). These limits will be inflated because the process will no

on limits refer to individual units. For some processes that are not in control, t

Sec 22 OPERATIONS

18

PROCESS CAPABILITY MEASUREMENT

f capability indices has brought with it the inevitable failure to understand rtant assumptions that are essential for statistical validity of the results. Four

ity: This means a state of statistical control with no drift or oscillation

he characteristic being measured: This is needed to draw statistical inferences a

ness of samples: This includes random sampling.

f the measurements: This means that consecutive measurements cannot be correlated

Sec 22 OPERATIONS

19

PROCESS PERFORMANCE MEASUREMENT

nd histograms, probability paper, plot of individual measurements, and attributes d

upper specification limit USL or lower specification limit LSL. Cpk is estimated b

would be defective. However, when we calculate Cpk , we obtain

Sec 22 OPERATIONS

20

PROCESS PERFORMANCE MEASUREMENT

lue of Cpk may require a change in the process average, the process standard devia

60 measurements yielded

Sec 22 OPERATIONS

21

PROCESS PERFORMANCE MEASUREMENT

out first evaluating the process for statistical control. The data may include mea

in the process average of ±1.5 standard deviations (of individual values) are not

only where variable measurement is impractical.

Sec 22 OPERATIONS

22

OTHER ASPECTS OF PROCESS CAPABILITY

pectrum of processes in the service industries. For certain parameters in service

Sec 22 OPERATIONS

23

OTHER ASPECTS OF PROCESS CAPABILITY

request for a capability index number or to evaluate and improve product quality

perature and pressure.

Sec 22 OPERATIONS

24

OTHER ASPECTS OF PROCESS CAPABILITY

r it also will include mistakes or errors that cause quality problems.

istics along with the process conditions (e.g., values of all process variables) and

fore starting the study, that all necessary data for the analysis will be availab

ability calculations can

Sec 22 OPERATIONS

25

ERROR - PROOFING THE PROCESS

of the more usual forms are summarized below.

e

utperform human muscle in precision of position. isibility. uit television) to permit viewing of the process despite distance, heat, fumes, etc hood of recognition and response, e.g., simultaneously ringing of bells and flashin s (e.g., cards on the hood of a car undergoing assembly, to show pictorially the equ

Sec 22 OPERATIONS

26

ERROR - PROOFING THE PROCESS

ps are checked against the sensing and informational needs. A dramatic example is

Sec 22 OPERATIONS

27

OTHER ELEMENTS OF EQUIPMENT AND WORK METHODS PLANNING

stments to Processes . Many processes require periodic adjustments. Manufacturi

cess variables that must be monitored for possible

r determining when an adjustment is necessary, ions for determining the amount of adjustment, and ient physical means for making the adjustment.

teristic should have a process variable that can be used to adjust it. Bemesderfer

variable should correspond to a single characteristic. ustment required during the process for a given change in the characteristic shou ible adjustments must be consistent with the range of application need. acy must be consistent with the product tolerance requirements. ccuracy, once the process is set, must be consistent with the product tolerance re

Sec 22 OPERATIONS

28

OTHER ELEMENTS OF EQUIPMENT AND WORK METHODS PLANNING

maintenance. Sometimes the delay is indefinite, the equipment breaks down, and the

o ensure that preventive maintenance schedules are followed.

m the process can help to justify the maintenance plan. The concept of total prod

Sec 22 OPERATIONS

29

OVERALL REVIEW OF MANUFACTURING PLANNING

make use of trial production lots (called pilot plant production, preproduction,

ducing enough product from the new tool to demonstrate that it can meet quality s

he regular production shop and provides an extensive preview of the problems that

in the non experimental portion of the trial.

Sec 22 OPERATIONS

30

OVERALL REVIEW OF MANUFACTURING PLANNING

oduction. In practice, companies usually make some compromises with this ideal app

a basis for good risk taking. While some companies do adhere to a strict rule of

es

Sec 22 OPERATIONS

31

OVERALL REVIEW OF MANUFACTURING PLANNING

t the potential failure modes and their effects on a proposed Process. The fault-t

cycle time.

Sec 22 OPERATIONS

32

PLANNING PROCESS CONTROLS

to inform the production people how to set up, run, and regulate the processes so the process is allowed to run. These criteria are imposed in three main areas:

un or should stop for readjustment.

type of control is preventive in nature and is quite different in concept from re

Sec 22 OPERATIONS

33

PLANNING PROCESS CONTROLS

ted with the decision: Should the process run or stop? Product controls are associ

a time when the product is still traceable to specific streams of the process. In

Sec 22 OPERATIONS

34

PLANNING PROCESS CONTROLS

ncept of Dominance . The main categories of dominance include those discussed b

rocesses have high reproducibility and stability for the entire length of the bat

process is subject to progressive change with time (wear of tools, depletion of re

re the quality of the input materials and components is the most influential.

uch processes quality depends mainly on the skill and knack possessed by the prod

These are usually processes in which the job information undergoes frequent chang

Sec 22 OPERATIONS

35

PLANNING FOR EVALUATION OF PRODUCT

ed for formal evaluation of product to determine its suitability for the marketpl conformance to specifications

onforming product on the disposition of nonconforming product

Sec 22 OPERATIONS

36

AUTOMATED MANUFACTURING

e march to automation. Several terms are important:

he process of applying the computer in a planned fashion from design through manu

cess in which the computer is used to plan and control the work of specific equip

which the computer assists in the creation or modification of a design.

Sec 22 OPERATIONS

37

AUTOMATED MANUFACTURING

d the introduction of electric power. Product quality will benefit in several ways

iables.

ta for line production operators and staff personnel. accountability for quality.

perate as one virtual factory. This enables companies to exchange and act on infor

Sec 22 OPERATIONS

38

AUTOMATED MANUFACTURING

the manufacturing activities. A globalized CIM system includes the following tech

lan can be used. The aim is to reduce the number of new designs or new manufactur

Sec 22 OPERATIONS

39

AUTOMATED MANUFACTURING

requirements. The system can be reprogrammed to accommodate design changes or new

Sec 22 OPERATIONS

40

LANNING FOR SELECTION , TRAINING , AND RETENTION OF PERSONNEL

ection, one human resource firm is developing a series of 50 to 100 questions to p

se “differentiating questions” will help to select new employees. Personality is o

Sec 22 OPERATIONS

41

LANNING FOR SELECTION , TRAINING , AND RETENTION OF PERSONNEL

are

cks or other process information becomes available.

ded. A notable example is the training provided to quality circles (data collectio

analysis techniques for routine control of a process.

ations.

must have basic skills in communication and mathematics. Communication skills incl

Sec 22 OPERATIONS

42

LANNING FOR SELECTION , TRAINING , AND RETENTION OF PERSONNEL

rts to retain these skilled employees. Compensation, of course, is an essential co

ent, is clearly important to achieve quality goals. It means hire the best people,

Sec 22 OPERATIONS

43

RGANIZATIONAL FORMS ON THE OPERATIONS FLOOR

en the departments. These walls—sometimes visible, sometimes invisible—often cau

e social system (people, roles, etc.)—thus the name sociotechnical systems (STSs).

Sec 22 OPERATIONS

44

CONCEPT OF CONTROLLABILITY ; SELF - CONTROL

ed results, that person is said to be in a state of self-control and therefore can of output conforming to quality requirements.

elf-control have been met. he criteria for self-control have not been met.

Sec 22 OPERATIONS

45

CONCEPT OF CONTROLLABILITY ; SELF - CONTROL

contributions must come from the managers, supervisors, and technical specialists

their knowledge of the state of controllability before embarking on major progra

t most defects are the result of worker carelessness, indifference, and even sabo

Sec 22 OPERATIONS

46

CONCEPT OF CONTROLLABILITY ; SELF - CONTROL

uthoritatively by opinion but requires solid facts, preferably through a controlla

be insufficient, often vague, or too late (the second criterion ); and people do

f the individual. Designing and maintaining—work activities to meet the three cr

Sec 22 OPERATIONS

47

KNOWLEDGE OF “ SUPPOSED TO DO ”

or other definition of the end result to be attained. process instructions, an oral instruction, or other definition of “means to an end to take .

he user. In most situations this is translated into a product specification. In de

teristics, and these are not equally important. When workers are informed of the v

Sec 22 OPERATIONS

48

KNOWLEDGE OF “ SUPPOSED TO DO ”

larges the knowledge of “supposed to do” and provides motivation through the resu

otographic standards should be provided. If these standards are not provided by t

rocedures. A procedure is developed for controlling each of the key process variab

Sec 22 OPERATIONS

49

KNOWLEDGE OF “ SUPPOSED TO DO ”

s:

perience with the process. Updating of process instructions based on job experienc

Sec 22 OPERATIONS

50

KNOWLEDGE OF “ SUPPOSED TO DO ”

on covers the first criterion of self-control; people must have the means for kno ed, including the following:

ess specifications, and work instructions? ortance of different quality characteristics? the work area? rker the same as the criteria used by inspectors?

rstand the specification and perform the steps needed to meet the specification? ations and product performance if the specification is not met? automatically and promptly? raw material and defective finished product? ns and actions been clearly defined?

Sec 22 OPERATIONS

51

KNOWLEDGE OF “ SUPPOSED TO DO ”

he formalization of quality requirements and associated documentation is now evol

Sec 22 OPERATIONS

52

KNOWLEDGE OF “ SUPPOSED TO DO ”

n quality and quantity needed? If “yes,” do they exist. Are they in written form? bout the relative priority of quality versus quantity of output? Do personnel rea and changed when more tasks are added to a job? ble for their output, or do they believe that shortcomings are not under their co pervisor about how to do a job always agree with information received from a high

rview of the entire organization? ed training to provide personnel with agers provide input to their training “why,” not just the “what”? ining program consider the background aining provide enough detail? Do they

Sec 22 OPERATIONS

current information on customer needs and n needs? of those to be trained? know how to do the job?

53

KNOWLEDGE OF “ IS DOING ”

edback is into an automated system, the data are usually available to human worker

ive action to take. The difficulty of motivating the workers to follow these inst

Sec 22 OPERATIONS

54

KNOWLEDGE OF “ IS DOING ”

n.

nalysis made, and to have the data relayed back to production can result in a dela

only with the few important defects, deals only with worker-controllable defects

Sec 22 OPERATIONS

55

KNOWLEDGE OF “ IS DOING ”

pond to a product deviation. Sources of this knowledge are:

visors with short-term summaries. These take several forms:

by worker names and the horizontal rows by the names of defect types. The matrix

ects for the day plus a list of the top three (or so) defects encountered and how

Sec 22 OPERATIONS

56

KNOWLEDGE OF “ IS DOING ”

evaluate the second criterion of self-control

provide numerical measurements rather than sort good from bad? Are they precise k? Is sufficient time allowed? ments to decide when to adjust the process and when to leave it alone? es follow instructions on sampling work and making process adjustments? ker, and are these results reviewed by the supervisor with the worker?

Sec 22 OPERATIONS

57

KNOWLEDGE OF “ IS DOING ”

ed from discussions with personnel in backroom operations in financial service is

ructions for making self-review of their work?

they performed? Are these checks performed by peer personnel or others? kpoints in a process, not just when work is completed? Is the sample size suffici ocess to ensure that individual work assignments are integrated to achieve proces

ide the same message and actions on the importance of quality versus quantity? ctions to output? th individuals and a group of personnel? Is time provided for discussion with the it timely? Is it personnel specific? ded particularly to correct problem areas?

Sec 22 OPERATIONS

58

ABILITY TO REGULATE

le cause-and-effect relationship (this is essential to minimize variation). procedures. er, e.g., should not require undue physical exertion. ability.

erion of self-control typically includes such questions as the following:

e both inherent variability and variability due to time? Is the capability period evaluate measurements to decide when the process should be reset? te defects? Under what conditions should the worker adjust the process? When shou

Sec 22 OPERATIONS

59

ABILITY TO REGULATE

nt of the work force. But empowerment goes far beyond delegating authority and pro

owerment to determine how the work can best be done.

Sec 22 OPERATIONS

60

ABILITY TO REGULATE

es, equipment, software, etc.) given to personnel capable of meeting standards on q of the principles of error-proofing? onous or unpleasant tasks? Etc

chnology (e.g., address fields on forms)? a job when they show that the change will provide benefits? Are personnel encour

the time and training to identify problems, analyze problems, and develop solution permitted process limits (e.g., maximum time on a customer phone call) if they beli

Sec 22 OPERATIONS

61

ABILITY TO REGULATE

ve as a tool to evaluate all quality-related aspects of the job, e.g., clarity of f

The checklist can help identify potential causes by providing an exhaustive list

ects of the job—some of which are under control of the person and some of which

Sec 22 OPERATIONS

62

ABILITY TO REGULATE

rocess.

at many job designs have basic weaknesses such as lack of clarity in quality requ problems on current jobs. Exercises on the three elements of self-control can be

Sec 22 OPERATIONS

63

TROUBLESHOOTING

sult of some sudden adverse change. For organizations that do not have a formal e

adverse change and the extent to which operations personnel are trained in the to

Sec 22 OPERATIONS

64

TROUBLESHOOTING

also can require extensive time for data collection and analysis—time that is n

the supervisors will have more time to participate on the cross-functional projec

Sec 22 OPERATIONS

65

SELF - INSPECTION

service sector, typical terms used are checking, examination, review, and reconcil

st to in-process inspection by the worker with an audit inspection by an independe

Sec 22 OPERATIONS

66

SELF - INSPECTION

adopted, some essential criteria must be met:

n. s..

nd perform the inspection.

oducts (internally and externally) in order to grasp the importance of a conforman for decision making. conducted for two purposes:

the duplicate inspections are reduced in frequency until their prime purpose is

Sec 22 OPERATIONS

67

AUDIT OF OPERATIONS QUALITY

e with respect to that performance. Application to manufacturing has been extensiv

audit is usually made of a specific activity against a specific document, such as

Sec 22 OPERATIONS

68

AUDIT OF OPERATIONS QUALITY

rol. The monitor process audit is conducted by a certified auditor; it covers a br

Sec 22 OPERATIONS

69

AUDIT OF OPERATIONS QUALITY

with an independent auditor, and minimizing some of the human relationship issues

s and requirements to include broader issues such as the effectiveness, efficienc

Sec 22 OPERATIONS

70

MAINTAINING A FOCUS ON CONTINUOUS IMPROVEMENT

er forces will result in an even stronger emphasis on improvement. Continuous imp

n to identify improvement opportunities that go beyond nonconformance to specific ms of effectiveness, efficiency, adaptability, and cycle time. t (“re-engineering”). are, and take action on experience-based information. —technical and behavioral, simple and sophisticated.

nt projects have “skimmed the cream off the top.” The sis.

Sec 22 OPERATIONS

71

QUALITY AND OPERATIONS CULTURE

arriage:

needs. Part of this is the design of individual jobs (that meet the criteria of se ity as a primary goal. Quality culture is the pattern—the emotional scenery—of h culture in a firm can be accomplished by a carefully planned attitude survey on involves five key elements:

Sec 22 OPERATIONS

72

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