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SM 122 FOOD DRIVE

6 th Place: B4, B6, B7, and B8- 0 Items. SM 122 FOOD DRIVE. 5 th Place: B3- 28 Items. 4 th Place: B9- 47 Items. 3 rd Place: B1- 74 Items. 2 ed Place: B5- 121 Items. 1 st Place: B2- 356 Items. SM 122 Freshman Update. FOOD DRIVE: TOTAL ITEMS COLLECTED. 626.

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SM 122 FOOD DRIVE

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  1. 6th Place: B4, B6, B7, and B8- 0 Items SM 122 FOOD DRIVE 5th Place: B3- 28 Items 4th Place: B9- 47 Items 3rd Place: B1- 74 Items 2ed Place: B5- 121 Items 1st Place: B2- 356 Items

  2. SM 122 Freshman Update FOOD DRIVE: TOTAL ITEMS COLLECTED 626 __________________________________________________________________ TOWN HALL MEETING: THIS TURSDAY 5:00 PM SMG 212

  3. Operations Management Professor Arnold and Friends

  4. GoodStuffCheap Products and Services Effectiveness The extent to which customers are satisfied sufficiently to remain customers. Efficiency The extent to which products and services are delivered at low cost.

  5. Why Study Operations? Ortoday’s agenda • On what bases do companies compete? • How do companies decide what to do? • How do companies add value? • How do companies organize to satisfy customers? • How can processes be improved? • What are the differences between goods and services production?

  6. Competition 1. Price - Which company sets the price in the market place? The company with the highest costs or the one with the lowest costs? If the firm with the highest costs can not generate positive margin what is the outcome? 2. Quality - Materials + Workmanship + Design = Perception 3. Product Differentiation through features 4. Flexibility - Henry Ford was once asked what colors the Model T would be available in. Ford’s famous response was “They [customers] can have any color they want as long as its black.” Today’s marketplace is a little different. 5. Time - How soon can it be delivered? Fedex was originally designed to deliver time sensitive documents. Now what? What about eCommerce? 6. Service - How well can customers have needs satisfied? How easy can product use be made? 7. Human Capital - What are organizational competencies? How do people develop capabilities? What kinds of investments do firms make in people?

  7. Strategy - What will we do well? Order Qualifiers - What characteristics (4Ps) makes a product or service a candidate for purchase? Order Winners - What is the difference between choices that results in one being selected over the others? Are order winners the same for all market segments? Distinctive Competencies - What a firm must do well in order to maintain a competitive advantage. Do all firms in an industry do the same things well? Why not?

  8. Operations ManagementThe Value Chain Perspective • Organizations Add Value by: Harvesting Raw Materials Producing Basic Materials Fabricating Parts Assembling Products Distributing Products Selling Products to Customers Providing After-Sales Service Reclaiming Materials Through Recycling • Some firms perform several of the activities – those firms are vertically integrated.

  9. Operations ManagementSupply Chain Perspective The supply chain is the collection of entities involved in delivering a product to consumers and subsequently dealing with any recycling. Producing Basic Materials Distributing Materials Harvesting Raw Materials Selling Products to Customers Fabricating Parts Assembling Products Providing After-Sales Service Distributing Products Firms participate in supply chains performing one or several of the tasks. What does Nike do? How about Coke? McDonalds? Aramark?

  10. Operations ManagementThe Process Perspective • A Process is the means for converting inputs into outputs • Process Analysis is a technique used to achieve an understanding of operating systems. It involves the collection and calculation of performance metrics • Process Flow Diagram is a schematic representation of the conversion system

  11. Process Flow Diagram Three Major Parts • The Flows - the path of products, people, and information through the system • The Queues - the location of various storage points • The Tasks - the places along the flow where conversion activities take place or either

  12. Process Flow Diagram - Copy Center Queue of Jobs to be Drilled Queue of Jobs to be Processed Queue of Jobs to be Stapled Completed Course Packets RM WIP WIP FG Copy Staple Drill Work Center Work Center Work Center Operating Unit

  13. CAPACITY The extent to which work can be accomplished • Usually measured as Units of Output per Period Time • Customers Per Hour • Gallons Per Minute • Items per Week • Jobs per Month • Capacity or Time is Consumed in Two Planned Activities • Setup Time - required prior to processing includes clean up, preparation, and changeover time. • Run Time - actual processing time • Capacity is usually calculated on a work center by work center basis

  14. Problem 2 35 minutes + 20 minutes + 10 minutes = 65 minutes 65 minutes/60 minutes/hour * $6/hour = $6.50 Total Processing Time Total Processing Time = Run Time + Setup Time Copy Machine Setup Time = 5 minutes Color Change = 2 minutes Run Time = 700/25 = 28 minutes Problem 1 Total Processing Time = 35 minutes per Job

  15. Suppose the copy center uses a copying machine that maintains a rate of 35 pages per minute. If jobs like the one described in the note 500 pages of white and 200 pages of pink; five minutes of setup, and two minutes to change over from pink to white, what would the total processing time for each job be? • 27 minutes per job • 28 minutes per job • 29 minutes per job • 30 minutes per job • 31 minutes per job • Suppose in the problem above the new machine also has two paper hoppers such that the two minute color change would be eliminated. Assuming the rest of the facts from the earlier problem what would the total processing time per job be? • 25 minutes per job • 26 minutes per job • 27 minutes per job • 28 minutes per job • 29 minutes per job

  16. Bottleneck • is the work center with the smallest capacity • acts as the limit on capacity • defines operating unit capacity • What is the capacity of the Copy Center for Jobs as described? • What is the bottleneck?

  17. 60 minutes/hour 35 minutes/job Capacity Analysis Copy Center Copy Staple Drill Processing Time (Minutes) 35 10 20 = 1.714 jobs/hour Capacity 6 jobs/hour 3 jobs/hour

  18. Suppose the total processing time per job were 27 minutes per job. What is the capacity of the copy machine work center? • Less than 2 units per hour • Between 2 and 2.25 units per hour • Between 2.25 and 2.50 units per hour • Between 2.50 and 2.75 units per hour • More than 2.75 units per hour 2.22 jobs per hour • Suppose the capacity of the copying work center were about 2.2 units per hour. Suppose further that the stapling and drilling were combined into one work center with a total processing time of 31 minutes per job. What is the capacity of the copying process? • Less than 2 units per hour • Between 2 and 2.25 units per hour • Between 2.25 and 2.50 units per hour • Between 2.50 and 2.75 units per hour • More than 2.75 units per hour 1.93 jobs per hour

  19. Capacity and Cycle Time • Cycle Time is the interval between units completed by either the process or a work center. • Operating Unit Cycle Time is equal to cycle time of the bottleneck. • What is the cycle time of the copy machine? • Right! 35 minutes - every 35 minutes a job is completed copying. • What is the Cycle Time of the Operating Unit? • Good! 35 minutes - the cycle time of the bottleneck. Problem 4

  20. 35 35 Capacity and Cycle Time Disbelievers Copy Staple Drill start end start end start end Job 1 0 35 35 45 45 65 2 35 70 70 80 80 100 3 70 105 105 115 115 135

  21. Problem 5 1 40 hours/week * 1.71 jobs/hour = 68.4 jobs/week Cycle Time = Capacity 1 Capacity = 35 minutes/job 60 minutes 1 job 60 minutes 1 = = 35 minutes 1 hour 1 hour =1.71 jobs/hour Capacity and Cycle Time Capacity and Cycle Time are Inversely Proportional Copy Center Cycle Time = 35 minutes/job

  22. 24 43 17 Drill Copy Staple 20 35 10 Throughput Time • is the Interval required to process a particular unit of output through a work center or an operating unit. • it is different from cycle time because it considers the effect of queue time. • queue time is the non-productive time that a unit of output spends in a work center or an operating unit. Problem 3 24 + 35 + 43 + 10 + 17 + 20 = 149

  23. capacity required capacity utilization = capacity available Capacity Utilization • is a measure of process efficiency • suggests the extent that units of output will be in queue • is a percentage the percentage of used productive ability divided by the extent to which the unit can produce output if a process operates at capacity, the bottleneck has a capacity utilization of 100%

  24. Capacity Utilization 28.6% 57.2% 100% Capacity Utilization Analysis Copy Staple Drill Capacity Available 1.714 jobs/hour 6 jobs/hour 3 jobs/hour Capacity Required 1.714 jobs/hour 1.714 jobs/hour 1.714 jobs/hour Problem 6

  25. 700 outputs = 93% yield = inputs 750 Quality • is the extent to which a product or process meets a customer needs • measures of process quality include yield • yield is the amount of output generated by some quantity of inputs • for example, a 700 page job that requires 750 pages of paper (due to misfeeds and other process or input defects Problem 9

  26. 50 packets 20 packets Sales COGS Miscellaneous Problem 8 • inventory turnover ratio • characteristics of quality in the copy center • what can be done about capacity utilization? • what can be done about yield?

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