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The Changing Business Environment

The Changing Business Environment. Growth of the internet Just-in-Time production Total Quality Management International competition. Business environment changes in the past twenty years. New tools for managers!. The Changing Business Environment. Just-In-Time Total Quality Management

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The Changing Business Environment

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  1. The Changing Business Environment • Growth of the internet • Just-in-Time production • Total Quality Management • International competition Business environment changes in the past twenty years

  2. New tools for managers! The Changing Business Environment • Just-In-Time • Total Quality Management • Process Reengineering • Theory of Constraints

  3. Just-in-Time (JIT) Systems Receivecustomerorders. Complete productsjust in time toship customers. Scheduleproduction. Complete partsjust in time forassembly into products. Receive materialsjust in time forproduction.

  4. JIT Consequences Zero productiondefects Improvedplant layout Reducedsetup time Flexibleworkforce JIT purchasing Fewer, but more ultrareliable suppliers. Frequent JIT deliveries in small lots. Defect-free supplier deliveries.

  5. Higher qualityproducts Increased throughput Benefits of a JIT System Reducedinventorycosts Freed-up funds Greatercustomersatisfaction More rapidresponse tocustomer orders

  6. Benchmarking ContinuousImprovement Total Quality Management Where are we? Where do we want to go? Plan Do we need to change the plan? How do we start? Act Do is Check How are we doing?

  7. Process Reengineering Anticipated results: Process is simplified. Process is completed in less time. Costs are reduced. Opportunities for errors are reduced. A business processis diagrammedin detail. Every step inthe businessprocess mustbe justified. The process isredesigned to includeonly those steps that makeour product more valuable.

  8. A sequential process of identifying and removing constraintsin a system. Theory of Constraints Restrictions or barriers that impedeprogress toward an objective

  9. Theory of Constraints Only actions that strengthen the weakest link in the “chain” improve the process. 2. Identify process constraints 1. Measure process capacity 3. Use bottlenecks effectively. 4. Coordinate processes

  10. Process Capacity A measure of a process’s ability to transform resources into value products and services. Theory of Constraints System Constraint The point in a system that limits the overall output of the system. Often called the “bottleneck.”

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