Q1

Enterprise Resource
PIanning (ERP): The
Dynamics Of Operations
Management
Avraham Shtub
Main Issues
1. Introduction - the need.
2. Organizations and Organizational structures.
3. InIormation and its use.
4. Marketing considerations in the Process.
5. Purchasing and inventory management.
6. Scheduling.
7.An inIormation system Ior Operations Management -
Material Requirement Planning (MRP).
8. Managing the integrated process (ERP).
9. The learning organization.
Q2
Ch.1: Introduction - The Need
1. The need Ior a Dynamic-Integrated Operations
Management.
2. Modeling in Operations Management.
3. The dynamic aspect - simulation, Systems
Dynamics, and the Operations Trainer.
4. Integration oI simulation with models Ior
decision making.
5. Interactive simulation - introduction to the
Operations Trainer.
The Need (1)
Leschke (1998), 'Operations decisions are not made
independently nor are they made in a linear sequence; they are
made in cycles with some decisions made inIrequently, while
others are made on a day to day or minute to minute basis. The
inability oI most students to appreciate this aspect oI
Operations Management is one oI the classic complaints about
the introductory POM course.
Q3
The Need (2)
Leschke (1998), suggests 'a Iramework capable oI
demonstrating how operations Iits into corporate strategy,
highlighting its dynamism and interconnectedness and
stimulating more critical thinking.
From Static Models to Integrated
Decision Making
Dynamic integrated operations management means:
Q Integration oI processes
Q Integration oI organizational units
Q Integration oI data and models
The methodology ?????
The tool: ERP systems.
Q4
Management
Q Planning
Q Organizing
Q StaIIing
Q Directing
Q Motivating
Q Leading
Q Controlling
Core Processes(1)
QThe development process - Irom an idea Ior a new product
or process to a working prototype.
QPreparation of facilities - Irom a working prototype oI a new
product to the successIul completion oI design,
implementation and testing oI the production/assembly
Iacility.
QSales - Irom the study oI the market and its needs to the
reception oI a Iirm customer order.
Q5
Core Processes(2)
QDelivery - Irom a Iirm customer order to the delivery oI the
required products and payment by customer.
QService - Irom customer call Ior a service to the Iixing oI the
problem and a satisIied customer.
Operations Management
Commonly used deIinitions:
Q All the activities directly related to the production oI goods
or services.
Q The Iunction involved in delivering value to the customers.
Q6
The Role of Operations in the Order
Fulfillment Process
Managing the order IulIillment process Irom customer order
to the delivery oI the goods and services required to
achieve satisIaction oI the customer.
Teaching Operations Management
QThe Operations Research oriented approach - based
on the development oI models designed to capture
the important aspects oI a managerial decision.
QThe case studies oriented approach - based on the
analysis and discussion oI speciIic situations (case
studies).
Q7
Modeling in Operations Management
Integration of Simulation With
Models for Decision Making
Three aspects oI a real process:
Q The Ilow oI material.
Q The Ilow oI inIormation.
Q The decision making process.
These aspects deIine the process workIlow.
The Ilow oI money - is it material or inIormation?
Q8
ERP - The Dynamics of Operation Management
PURCHASING
MARKETING &
SALES
PRODUCTION
FINANCIAL & ACCOUNTING
S
U
P
P
L
I
E
R
C
U
S
T
O
M
E
R
Material Requirement
Planning (MRP I & II)
Purchase Order processing
& Logistic
Purchasing vendor
analysis (supplier
management)
Account Payable
Product Costing
Account Receivable General Ledger
BOM
Production (W/O, CRP)
Inventory Management
RM, Parts, WIP & FG
Forecasting
Sales Analysis
Sales Order Processing, Sales
Management and Distribution
(Firm order, Shipment &
Inventory)
Master Production
Schedule (MPS)
RCCP
The Operations Trainer
Q A simulation approach.
Q A case study approach.
Q A dynamic approach.
Q A model based approach.
Q An integrated approach.
Q9
Ch2: Organizations and Organizational
structures
1. Functional and project organizations, typical
goals and perIormance measures.
2.The job shop, Ilow shop and group technology.
3.Operations Management and its interIace with
other Iunctional areas: restructuring the delivery
process.
4.Functions and scenarios in the Operations Trainer
Organizations and Organizational
Structures
The principles oI division oI labor and specialization- an
old principles with a new meaning. (Adam Smith An
Inquirv into the Nature and Causes of the Wealth of
Nations -1776 ).
Q10
Organizations and Organizational
Structures
Q The Functional Organization.
Q The Project organization.
Q The matrix structure.
Q The new organization: Concurrent Engineering (CE).
The Functional Organization
Q11
The Project organization
Q12
The Organization of Physical
Resources on the Shop Floor
QThe job shop
QThe Ilow shop
QGroup Technology
The Job Shop
Q13
The Flow Shop
Group Technology
Q14
Restructuring the Delivery Process
(1)
Q Dynamic Integrated Operations Management starts
with a management team responsible Ior the entire
delivery process.
Q A single manager is responsible Ior the entire delivery
process .
Q The members oI this team are located in the same
Iacility and adjacent to each other (or use an ERP
system).
Restructuring the Delivery Process
(2)
Q The Operations Trainer is instrumental in supporting this
organizational change by providing a setting where a team
approach can be experienced and tested.
Q The Operations Trainer is a tool Ior team building and
team training.
Q15
A Well Structures Delivery Process:
The Design of Workflow
Q What should be done to perIorm the process successIully ?
Q When should it be done?
Q How should it be done ?
Q Who should do it ?
Q What inIormation should be provided ,to whom and in what
Iormat ?
Q What perIormance measures should be used ?
Information and Its Use
QThe data aspect - data collection, storage, retrieval
and analysis.
QThe decision making aspect - making decisions
regarding the usage oI inIormation ,resources and
materials:
1. Routine decisions.
2. Ad - hoc or non routine decisions
Q16
Design of the Decision Making
Process
QType oI decisions to automate.
QThe logic used Ior automated decisions.
QData required Ior automated and non automated
decisions.
QThe way the data should be collected, processed and
presented as inIormation to support decision making
processes.
QThe establishment oI monitoring and control
systems that are needed to detect problems in the
process early on.
Ch. 3 InIormation and its Use
1. From data collection to decision making.
2. InIormation systems - the data base and the model base.
3. The accounting inIormation system.
4. Quality oI inIormation.
5. Forecasting.
6.The accounting inIormation system and Iinancial aspects in
the Operations Trainer.
Q17
Data and Information
QTransaction processing system - a system that perIorms
and records all routine transactions such as sales order entry,
inventory transactions and shipments to customers.
QManagement Information system- a system that serves
the Iunctions oI planning, decision making and controlling
by providing the output oI automated decision processes as
well as routine summary and exception reports.
QDecision support system - a system that combines data and
analytical models to support semistructured and unstructured
decision making.
The Model Base
QModels Ior well structured, routine, decision making
processes.
QModels Ior non structured or non-routine problems.
QModels Ior process control.
Q18
The Data Base
QData required Ior well structured, routine, decision
making processes.
QData required Ior non structured or non-routine
problems.
QData required Ior process control
The Accounting Information System
(1)
QThe order entry, sales entry system - the system that
interIace with the customers and the markets.
QThe billing, accounts receivable, cash receipts system -
the system that bills customers, monitors customer
accounts, and records cash receipts.
QThe purchasing account payable, cash disbursements
system - the system that supports purchasing oI goods
and services, monitors open payable, and processes and
records cash disbursements.
Q19
The Accounting Information System
(2)
QThe inventory system - the system that monitors
inventory and its value.
QThe human resources management system - the
system that maintains employee and payroll records
and prepare and records payroll transactions.
QThe general ledger, Iinancial reporting system - the
system that maintains the general ledger and
prepares accounting reports.
QThe integrated production system - the system that
collects, processes and records production costs.
The Accounting Information System -
Misinterpretation and Erroneous
Decisions
1. Traditional cost accounting models
2. Activity Based Costing (ABC)
3. Other systems:
QThroughput ( T )- The rate at which the system generates
money through sales.
QInventory ( I ) -All the money the system invests in
purchasing things the system intends to sell.
QOperating Expenses ( OE )- All the money the system spends
in turning inventory into throughput which is not included in
the throughput calculations.
Q20
Quality of Information
(1)
QUnderstandability: InIormation can support the decision
making process only iI the decision makers understand it.
QValidity: Valid inIormation describes an actual and
relevant reality.
QRelevance: InIormation is relevant Ior the decision
making process iI it reduces uncertainty and either
reinIorce the decision that would have been made without
that inIormation, or change the outcome oI the decision
making process.
The Accounting Information System
Q21
Quality of Information
(2)
Q Completeness: Measures the level oI coverage oI every
relevant object by the inIormation.
Q Accuracy: This is a measure oI the level oI agreement
between the inIormation and actual reality.
Forecasting
Q The Moving Average .
Q The Weighted moving average.
Q The exponential smoothing.
Q22
Q23
Moving Average

Q
L
L W W
3

Q24
Weighted Moving Average

Q
L
L W L W
Q
L
L W W
Z 2 Z )
1
-
1
:KHUH
Exponential Smoothing Model

1 1 1

9 9 9 9
,
Q25
Performance Measures Used to
Evaluate the Quality of Forecasts
Q Mean Absolute Deviation - MAD
Q Mean Squared Error-MSE
Mean Absolute Deviation -MAD

Q
L
L L
Q
Q REVHUYDWLR IRUHFDVW
0$'
1
Q26
Mean Squared Error -MSE

1
2

Q
Q REVHUYDWLR IRUHFDVW
06(
Q
L
L L
Ch. 4: Marketing considerations
1. Make to stock, make to order, assemble to
order policies.
2. The Master Production Schedule.
3. Lead time and time based competition.
4. Quality and its management - quality based
competition.
5. Cost considerations and cost based competition.
6. Marketing in the Operations Trainer.
Q27
Marketing Considerations in the
Delivery Process
Marketing policies:
QMake to stock
QMake to order
QAssemble to order
Marketing
Q28
The Master Production schedule
The MPS is a statement oI
Planned,
Future,
Gross Requirements
OI End Products
Q29
Managing the Master Production
Schedule
QThe introduction oI new requirements into the MPS,
QThe updating oI existing requirements - changing the
required time, the required quantities, or changing the
status Irom available to promise to a Iirm customer order,
QMonitoring and control oI actual perIormances oI the
delivery process compared to the goals established by the
MPS.
Lead Time and Time Based
Competition
QElimination oI unnecessary operations.
QMinimization oI the duration oI necessary operations.
QMinimization oI delays beIore, aIter, and during the
operations.
QMinimization oI dependencies between operations to
enable parallel operations.
Q30
Delays
Q Decision making delays are introduced when data and
inIormation are made available to users sequentially.
Q Operations related delays are generated when due to
relatively long set up time, large batches (or lots) oI the
same product are processed.
Q Process delays are caused by bottlenecks in the process.
Quality and Its Management:Quality
Based Competition (1)
QPerIormance: the product or service primary
characteristics.
QFeatures: a secondary aspect oI perIormances.
QReliability: the probability oI a product
malIunctioning or Iailing within a speciIied time
period .
QConIormance: the degree to which product or
service design and operating characteristics meet the
established standards.
Q31
Quality and Its Management:Quality
Based Competition(2)
QDurability: the economic and technical service
duration oI a product.
QServiceability: speed, courtesy, competence and
ease oI repair should the product Iail.
QAesthetics: how the product Ieels, tastes, looks or
smells, reIlects individuals preIerences.
QPerceived quality: related to the reputation oI a
product or a service.
Cost Considerations and Cost Based
Competition
proIit per product unit the diIIerence between
the selling price oI the product and its cost
To increase proIits :
QIncrease the selling price.
QDecrease the cost.
QDo both.
Q32
Measuring the Cost of a Product
Unit
QTraditional cost accounting systems.
QAnalysis oI the total cost rather than unit cost.
QABC analysis.
QThroughput analysis.
Cost based Competition (1)
Direct cost data
A B C
Annual demand
|units]
100 200 400
Direct labor
|hours/unit]
10 5 5
Hourly rate |$] 20 20 20
Direct labor
cost/unit |$]
200 100 100
Direct material
cost/unit |$]
100 100 100
Q33
Cost based Competition (2)
Total cost and proIit a nalysis
A B C
Total di rect hours 1000 1000 2000
Indirect cost/di rect hour
|$]*
20 20 20
Indirect cost/unit |$] 200 100 100
Tot al unit cost |$] 500 300 300
Unit sell ing price |$] 400 400 400
ProIit per unit |$] (100) 100 100
Cost based Competition (3)
ScIIIng IodcIs A, H und C
N IndIiccf cosf/dIiccf houi [$|

N TofuI pioIf ion fhc fhicc nodcIs Is

-100002000040000$50000
N ConcIusIon. SIncc nodcI A Is IosIng noncy If
sccns fhuf fhc iIghf dccIsIon Is fo sfop Ifs
pioducfIon.
Q34
Cost based Competition (4)
SoIIIng XodoIs H and C onIy
Iaboi cosf 1uu^2uu1uu^4uuSuuuu
XafoiIaI cosf 1uu^2uu1uu^4uuSuuuu
IndIiocf cosf Suuuu
1ofaI cosf S2uuuuu
1ho annuaI saIos aio 4uu^(2uu4uu)S24uuuu
1ho annuaI pioIIf Iion soIIIng XodoIs H and C Is.
24uuuu-2uuuuuS4uuuu
Cost based Competition (5)
Thioughpuf AnaIysIs
\nIf fhioughpuf and fofaI fhioughpuf pci nodcI
A H C
AnnuaI dcnand 1uu 2uu 4uu
\nIf scIIIng piIcc [S| 4uu 4uu 4uu
DIiccf nafciIaI cosf/unIf
[S|
1uu 1uu 1uu
Thioughpuf pci unIf [S| 2uu 2uu 2uu
Thioughpuf pci nodcI [S| 2uuuu uuuu 12uuuu
Q35
Cost based Competition (6)
InIf fhioughpuf and fofaI fhioughpuf oi nodcIs A,H and C
TofaI fhioughpuf 21uuuu
Cosf .
DIiccf Iaboi cosf 2uu^1uu1uu^2uu1uu^4uuSuuuu
IndIiccf cosf Suuuu
TofaI opciafIng cosf uuuuuuuuuS1uuuu
TofaI pioIf 21uuuu-1uuuu S5uuuu
Cost based Competition (7)
InIf fhioughpuf and fofaI fhioughpuf oi nodcIs H and C
fofaI fhioughpuf Is 0000120000$10000
DIiccf Iuboi cosf 200^100100^400$0000
IndIiccf cosf $0000
TofuI opciufIng cosfs 00000000$140000
TofuI pioIf 10000-140000$40000
Q36
Ch. 5: Purchasing and inventory
management
1. The need Ior outsourcing.
2. Outsourcing and make or buy decisions.
3. Suppliers management.
4. Inventory management - beneIit and cost
considerations.
5. Inventory management - models and their
assumptions.
6.The dynamics oI the delivery process ,early
studies and the Operations Trainer.
7. The purchasing Iunction in the Operations
Trainer.
Outsourcing
QWhich materials, parts and services should be
purchased - the make or buy decision.
QHow to select the suppliers and what kind oI
relationship to establish with them - supplier
management.
QWhat quantities to order, when to place new orders,
and how to manage the stocks oI purchased goods
and materials - inventory management.
Q37
Purchasing
Outsourcing and Make or Buy
Decisions
(1)
Q Know how - outsourcing may be necessary when the
organization does not posses the technological know
how.
Q Cost and volume - cost oI in house manuIacturing is too
high, or the volume is too low.
Q Demand pattern - demand Ior a part or service is widely
Iluctuating or seasonal.
Q Time - when the lead time oI buying is substantially
lower than the lead time oI manuIacturing.
Q38
Outsourcing and Make or Buy
Decisions
(2)
Q Quality - when the quality available Irom vendors is better
than the quality that can be obtained in house.
Q Feasibility - in some cases outsourcing is the only option
available.
Q Capacity - outsourcing provides an external source oI
capacity.
Q39
Suppliers Management
Q DeIinition oI the required product or service including
Iunctional, physical and technical speciIications.
Q DeIinition oI the delivery process requirements, including
required lead time, size and number oI shipments, shipping
arrangements and Irequency oI deliveries.
Q DeIinition oI the quality system the supplier should
employ and quality requirements applied to the product or
service.
Selection of Suppliers
(1)
QProcess capability - can the process used by the
supplier produce the parts at the speciIied quality
level ?
QQuality assurance - are quality related procedures
employed by the supplier adequate in order to
maintain consistent quality at the required level ?
QFinancial capability - what is the risk associated
with doing business with the supplier ?
Q40
Selection of Suppliers
(2)
QCost structure - what are the actual costs oI material, labor
and overhead and what are the supplier`s proIits.
QValue analysis eIIort -can the supplier perIorm value
analysis.
QProduction scheduling - The ability oI the supplier`s
production planning and control system to deliver on time, to
accommodate changes, and to supply in a short lead time.
QContract performance - The perIormance measures used to
evaluate the supplier`s perIormance.
Contract Management
Q Inspection - Iocusing on product inspection to
eliminate deIects.
Q Prevention - Iocus on eIIorts to build quality into the
product and process, the purchaser helps the supplier in
developing and maintaining a deIect Iree manuIacturing
processes.
Q Partnership - a long term relationship between the
purchaser and the supplier that is based on teamwork
between the two parties.
Q41
Inventory Management
Types oI Inventories:
QRaw materials
QParts and components
Q Work in process
QFinished goods
Q Supplies
Inventory Management - Benefits
Q Coping with uncertainty - buIIer inventories are used when
demand or supply are uncertain.
Q Decoupling activities in the delivery process - inventories are
used when two stages in the delivery process are not
balanced.
Q Cost based competition - carrying inventories to reduce cost
is the purpose oI most early models Ior inventory
management.
Q Technological considerations - a process designed Ior a batch
oI a given size.
Q Time based competition -Inventories are used to bridge the
gap between the lead time oI the delivery process and the
lead time required by the customers.
Q42
Costs Associated With Inventories
Q Operating costs - the cost oI personnel managing and
operating the inventory system, cost oI energy needed
Ior air-conditioning, light and Ior operating material
handling equipment, the cost oI maintenance oI the
goods stored and the equipment used Ior material
handling.
Q Overhead costs including tax paid Ior the Iacilities.
Q Risk related cost - the cost oI theIt, damage due to Iire,
water, obsolescence and pilIerage, or alternatively the
cost oI insurance to protect against these risks.
ABC or Pareto analysis
In many populations we Iind that a small
percentage oI the population (say 15-25
percent) accounts Ior a signiIicant portion
oI a measured Iactor (say 75-85 percent).
Q43
Inventory Management Models and
Their Assumptions
Q Models dealing with a single item Vs models dealing
with multiple items that share some common
resources.
Q Models Ior independent demand Vs models Ior
dependent demand items.
Q Models that ignore the eIIect oI uncertainty Vs models
that consider the eIIect oI uncertainty.
Q Quantitative models Vs qualitative models.
Q44
The Economic Order Quantity (EOQ)
Model(1)
Assumptions (1):
Q Demand rate (demand per unit oI time) is a known
constant (i.e. independent deterministic demand).
Q Instantaneous delivery to customers is required, no
backlogs or shortages allowed.
Q The order lead time is a known constant (it is
deterministic and independent on the size oI the
order or the capacity oI the supplier`s delivery
process).
The Economic Order Quantity (EOQ)
Model(2)
Assumptions (2) :
Q The cost per unit ordered is a known constant (i.e. no
uncertainty and no economy to scale assumed).
Q The cost oI placing an order is a known constant (i.e.
deterministic).
Q The inventory holding cost is based on average
inventory level and is constant.
Q The objective is to minimize the total cost per period
Q45
Notation
D
the per period demand
c U
the cost per unit ordered
c O
the cost oI placing an order per order
c I
inventory holding cost per unit held per period
Q
the quantity ordered each time an order is placed
L1
the order lead time - the elapsed time Irom placing an
order to receiving the goods
Q46
c c c
I Q O Q D U D 1C * ) 2 / ( * ) / ( *
0
2
*
2

c c
I
Q
O D
dQ
d1C
c
c
I
O D
Q
x x

2
*
The optimal order size
Q47
Difficulties With the Model's
Assumptions:
QDemand rate is rarely constant and Irequently only a
Iorecast oI demand is available.
QThe costs oI real inventory systems vary over time
and usually are not exactly known.
QLead-time is usually a random variable and due to
capacity limitations it might be dependent on the
size oI the order and the current load on the shop
Iloor.
QInteractions exist between diIIerent items ordered
Irom the same supplier or delivered by the same
order IulIillment process.
The Main Problem With the Model's
Assumptions:
Set up is not a necessity- Just In Time
is a special case oI EOQ when set up
cost is zero.
Q48
Ch. 6: Scheduling
1. The job shop, implementing priority rules
2. Scheduling the Ilow shop
3. The Just In Time approach (JIT)
4. The dynamic shop -expediting and changing
priorities
5. The Drum BuIIer Rope Approach
6. Scheduling in the Operations Trainer
Scheduling The Job Shop,
Implementing Priority Rules
Scheduling objectives:
Q On-time completion oI each part according to the MPS.
Q The completion oI all jobs as early as possible.
Q Minimization oI the time that parts spend in the shop (to
minimize in process inventory).
Q Maximization oI the utilization oI resources by minimizing
their idle time.
Q Minimization oI cost by using less expensive resources (e.g.
using regular time and avoiding overtime and extra shiIts
when these are expensive).
Q49
Production
Scheduling Constraints
QEach machine can process one job at a time.
QEach part can be processed by one machine at a time.
QParts should be processed according to the predetermined
routing.
QResources (man machines and Iacilities) are scheduled to
perIorm operations in a cost eIIective manner (e.g. using
regular time and avoiding over time ad much as possible).
Q50
Simple Priority Rules:
Q Early Due Date (EDD)
Q Current job
Q Shortest Processing Time (SPT)
Q First In First Out (FIFO)
Complex Priority Rules
Q Slack Time Remaining (STR) - the diIIerence between the
time remaining beIore the due date and the time required
Ior processing the remaining jobs. The smaller the value oI
STR the higher the priority oI the job.
Q Slack Time Remaining per Operation (STR/OP) - the
average slack time per remaining operation calculated as the
ratio between STR and the number oI remaining operations.
Higher priority is assigned to jobs with lower value oI
STR/OP.
Q Critical Ratio (CR) - the diIIerence between the due date
and the current date divided by the time required to
complete the remaining work. Jobs with smaller value oI
CR are getting higher priority.
Q51
Data for scheduling example
Job number Duration oI Iirst
operation
Duration oI second
operation
Due date
I 3 8 20
II 4 6 12
III 5 -- 10
First Come First Served (FCFS)
Job
number
Prior
ity
Start
time
Finish
time
Due date
I 1 0 3 20
II 2 3 7 12
III 3 7 12 10
Q52
Early Due Date (EDD)
Job
number
Priority Start
time
Finish
time
Due
date
I 3 9 12 20
II 2 5 9 12
III 1 0 5 10
Q53
Slack Time Remaining (STR)
Job
number
STR Priority Start time Finish
time
Due date
I 20-119 3 9 12 20
II 12-102 1 0 4 12
III 10-55 2 4 9 10
Q54
Scheduling the Flow Shop
QThe use oI priority rules- can we do any better?
QThe Johnson`s rule.
QThe Just In Time approach (JIT).
Q55
Data for the two-machine flow shop
Example
Job number Processing time
on the Iirst
machine
Processing time
on the second
machine
I 6 3
II 4 8
III 8 5
IV 2 3
Johnson's Rule
The Iinal schedule is IV, II, III, I.
Q56
Just In Time- JIT
Minimum Waste in the Process
Q57
Waste in the Delivery Process
Q Waste oI space.
Q Material handling waste.
Q Quality related waste.
Q Inventory related waste.
Scheduling in the JIT Environment
an Effort to Eliminate Waste
Q To minimize work in process, inventories between
consecutive machines are limited.
Q To minimize the raw materials and supplies inventories
the order cost associated with ordering Irom suppliers
is reduced by purchasing Irom suppliers located close
by, and by signing long term contracts with suppliers.
Q To minimize work in process small batch sizes are
scheduled Ior production.
Q58
Ch. 7 An inIormation system Ior
Operations Management - Material
Requirement Planning (MRP)
1.The Typical data Files: The Master Production
Schedule (MPS), The Bill oI Material(BOM) and
Inventory Data.
2.Gross To Net and Time Phasing - The MRP Logic.
3.Capacity Considerations - Rough Cut Capacity
Planning.
4.Capacity Requirement Planning (CRP).
Material Requirements Planning
MRP
A Limited Yet Integrated Approach
Emphasize is on Material
Q59
Material Requirement Planning
Main Components
QThe Master Production Schedule.
QThe Bill OI Material.
QThe Inventory Records.
QGross To Net and Time Phasing.
Q60
Q61
Material Requirement Planning
The Theory of Constraints
Implementation oI Pareto Analysis to the
Scheduling Problem- Concentrate on type A
Machines (bottle necks)
Q62
Drum Buffer Rope
Ways to keep a group oI soldiers together despite the
random variations in speed:
Select soldiers with exactly the same pace.
Arrange the soldiers in the group in order oI their. marching
speed
Use a signal like a drumbeat.
Drum Buffer Rope
Q63
Ch. 8:Managing The Integrated Delivery
Process
1. The role oI management in the integrated
delivery process.
2. The hierarchy oI goals.
3. Developing a plan -The road map to the goal.
4. Establishing control-identiIying problems.
5.Taking actions-handling problems.
6. Policies, Control Systems and Actions in the
Operations Trainer.
Using ERP- Management's
Responsibility
Q Developing a Plan -The Road map to the Goal
Q Establishing control-identiIying problems
Q Taking actions-solving problems
Q64
Solving Problems
I IdentiIy the problem
I DeIine the problem in terms oI the process
perIormance measures
I Analyze the problem to Iind its roots
I Generate alternative long and short range solutions
I Evaluate the solutions with respect to their eIIect on
the perIormance measures
I Select the best solutions
I Implement the selected solutions
A Well Structures Delivery Process:
Design of the Workflow
Q What should be done to perIorm the process
successIully ?
Q When should it be done?
Q How should it be done ?
Q Who should do it ?
Q What inIormation should be provided ,to whom and in
what Iormat ?
Q What perIormance measures should be used ?
Q65
Ch. 9: The learning organization
1. From individual learning (the learning curve)
to organizational learning.
2. The Operations Trainer as a teaching lab.
3. The Operations Trainer and group decision
making.
4. Executive training by the Operations Trainer.
5. Business Process Reengineering (BPR) and
the Operations Trainer.
Q66
TEACHING AND TRAINING INTEGRATED
PRODUCTION AND ORDER MANAGEMENT
Barriers that a new team must overcome:
QUnclear objectives.
QDiIIering outlooks, priorities and interests.
QRole conIlicts.
QPersonal conIlicts.
The Process of Team Building:
QEstablish urgency and direction.
QSelect members based on skill and skill potential,
not personalities..
QPay particular attention to Iirst meetings and actions.
QSet some clear rules oI behavior.
QSet and seize upon a Iew immediate perIormance
oriented tasks and goals.
QChallenge the group regularly with Iresh Iacts and
inIormation.
QSpend lots oI time together.
QExploit the power oI positive Ieedback, recognition
and reward.
Q67
Group Learning
QThe ability to collect and share knowledge so that members
oI the group can learn Irom each other's experience.
QThe ability to learn Irom the experience oI other groups or
organizations
QThe development oI an eIIicient group decisions making
process
QThe ability to share and use inIormation in real time.
The Team Performance Curve