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Enhancing Core Work Processes

Enhancing Core Work Processes. Objectives. What is the Value Added concept and how does it relate to management of technology & work processes? What are some work-process concerns inherent in operations management?. System Complexity. Most systems are inherently wasteful.

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Enhancing Core Work Processes

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  1. Enhancing Core Work Processes

  2. Objectives • What is the Value Added concept and how does it relate to management of technology & work processes? • What are some work-process concerns inherent in operations management?

  3. System Complexity • Most systems are inherently wasteful. • The reason for waste is unnecessary complexity. • "Most systems are unnecessarily complex because companies repaved the manual road that was there with technology.

  4. A Process (defined) • A process is defined as a series of repetitive and interrelated activities each having prescribed inputs and outputs. • Each process may be made up of one or many sub-processes and activities.

  5. Economic Value-Added • EVA is a measure of surplus value created on an investment.

  6. PRINCIPLES OF OPERATIONS MANAGEMENT GENERAL ISSUES / ENVIRONMENTAL CONCERNS • Get to know the customer and the competition • Make it easy to make/provide goods and services without error-the first time. • Become dedicated to continuous, rapid improvement. SOURCE: R.J. Schonberger and E.M. Knod, Jr., Operations management: Improving Customer Service, 4th ed. ( Homewood, Ill.: Richard D. Irwin, 1991), ch. 1. Used with permission.

  7. PRINCIPLES OF OPERATIONS MANAGEMENT • PRODUCT PLANS & DESIGN STRATEGY • Cut the number of components in a product or service.

  8. PRINCIPLES OF OPERATIONS MANAGEMENT MATERIALS MANAGEMENT STRATEGY • Cut the number of suppliers to a few good ones. • Arrange the workplace to eliminate material or tool search time.

  9. PRINCIPLES OF OPERATIONS MANAGEMENT PROCESS STRATEGY • Cut work in process (waiting lines), throughput times, flow distances, and space. • Cut setup and changeover times. • Produce and deliver at the customer’s use rate; decrease cycle interval and lot size. • Record and retain output volume, quality, and problem data at the workplace.

  10. PRINCIPLES OF OPERATIONS MANAGEMENT LAYOUT STRATEGY • Cut flow distances, and space. • Convert multi-path flows to single-channel lanes; create cells and low lines. • Use plural rather than singular workstations, machines, cells, and flow lines for each product, service, or customer.

  11. PRINCIPLES OF OPERATIONS MANAGEMENT TECHNOLOGY STRATEGY • Maintain and improve present equipment and human work before thinking about new equipment. • Look for simple, cheap, movable equipment. • Automate incrementally, when process variability cannot otherwise be reduced.

  12. PRINCIPLES OF OPERATIONS MANAGEMENT HUMAN RESOURCE STRATEGY • Cross-train for mastery of multiple skills • Ensure that the line people get first crack at problem solving-before staff experts.

  13. Project ManagementCompetencies(planning, estimating, scheduling, tracking,controlling, measuring, and re-engineering.) • Project Definition:define the project's business objectives and goals, deliverables, assumptions and constraints, the project communication plan (how status and information will be shared with all stakeholders), and the high level Phase Plan. • Planning Process:bring the right resources to bear, based upon a reasonable and feasible estimate. Critical path and project dependencies must be well understood and managed.

  14. Project ManagementCompetencies • Estimating Process: • Develop an Estimating Plan - Identify the participants, roles and responsibilities, as well as an outline and schedule of the tasks required to produce a good estimate. • Revalidate Scope of Project Definition • Design the solution - Furnish a preliminary work breakdown structure and a working picture of the components involved in the new system. • Develop Estimating Assumptions – Create common, clearly established assumptions. • Estimate - Create the estimate. • Create the Preliminary Plan - Devises a preliminary work plan with assigned resources and dependencies.

  15. Project ManagementCompetencies • Controlling Process: • Keeping Score. • Ensuring that the project is on target and the correct results are being achieved. • Reporting and Variance Analysis are critical skills to the controlling process

  16. Fishbone Diagram • A way to organize and display the various theories about the root causes of a problem. • It is an effective tool for bringing together divergent ideas in a group. • Once a fishbone or, as it would be more formally called, a cause-effect (CE) diagram has been completed, other tools such as Pareto Analysis may be used to analyze data to establish causality by empirical methods. • The CE diagram is primarily used during the diagnostic part of the analysis.

  17. Fishbone Diagram

  18. Pareto chart analysis • Pareto Analysis can help you prioritize and focus resources where they are most needed. It can also help you measure the impact of an improvement by comparing before and after. • When giving presentations, Pareto Diagrams are a visually effective means of displaying the relative importance of causes, problems or other conditions.

  19. Pareto Chart Analysis

  20. Pareto Chart Analysis • helps to prioritize where action and process changes should be focused. • If one is trying to take action based upon causes of accidents or events, it is generally most helpful to focus efforts on the most frequent causes. • Going after an "easy" yet infrequent cause will probably not reap benefits.

  21. A Process (defined) • A process is defined as a series of repetitive and interrelated activities each having prescribed inputs and outputs. • Each process may be made up of one or many sub-processes and activities.

  22. Process Flow Chart

  23. Continuous Improvement of Processes & Six Sigma • defining a problem • measuring how the process performs • analyzing causes of problems • improving the process to reduce defects and variations • controlling the process to ensure continued, improved performance.

  24. What is Six Sigma ? • Trademarked by Motorola Inc. 30 years ago • Measures quality by the number of defects per million opportunities. • There are six levels of achievement, with Six Sigma being the highest. • At Six Sigma, only 3.4 defects per million opportunities are allowed. See: Motorola University http://mu.motorola.com/SixSigma/SixSigma.html

  25. Benchmarking • The concept of discovering what is the best performance being achieved, whether in your company, by a competitor, or by an entirely different industry.

  26. Economic Value-Added • EVA is a measure of surplus value created on an investment.

  27. Map Work ProcessAsk the workforce exactly how it does what it does: • How much time is spent assembling, analyzing, and communicating information? • How much time is spent in functions — where, by what methods, with what tools? • How much time is spent in and out of the office? What is the daily, weekly or monthly pattern? • How important are face-to-face collaboration, team and solo work? • Should the workplace be open, defined or enclosed? • What is the sight and sound environment?

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