Configuring and Integrating Operating Processes


Manufacturing Strategy Choices

·         Infrastructure (Soft)

o   Made by middle/lower management

o   Examples:  hiring/firing decisions

·         Structure (Hard) – see session


Infrastructure Decision Categories

·         Workforce involvement:  People – number, types of, skills, empowerment

o   Education:  process that provides knowledge, skills, and attitudes necessary to produce cause and effect understanding and support long-term behavioral change

§  Objectives

·         Transfer of facts

·         Understanding of the message

·         Change in behavior

·         Implementation of new technique/ideas

·         Line accountability

·         Peer confirmation

·         Continuing reinforcement

·         Credibility

·         Enthusiasm

o   Training:  transfer of mechanical expertise in response and reaction to a given situation

o   The Critical Mass

§  Consist of “Value Adders”

§  Individuals who add value to the product directly or indirectly

·         Organizational design:  vertical/horizontal, centralized/decentralized, matrix, # of levels

o   Centralized

§  Reason is to minimize cost usually

§  Best for firm with mature commodity product and process focus

§  Examples:  steel mills/oil refineries

o   Decentralized

§  Profit/loss responsibility at the unit level

§  Flexibility/Delivery

o   Hierarchal

§  Doesn’t work well in JIT

§  Slow down decision-making

o   Horizontal

§  Good for JIT

§  Easier communication/better teamwork

·         Operations systems configuration

o   Quality systems:  inspection degree, type/frequency; process capability; types of control

§  The Quality Tree

·         Inspection

·         Process Measurement and Improvement

1.       What is the process?

2.       Who is the customer?

3.       What are his/her needs/wants

4.       Is the process capable of delivering a perfect output every time?

5.       Does the process meet customer needs and wants perfectly every time?

6.       How do you know that?

·         Process Control

Ø  X Chart:  every observation over time

Ø  R Chart:  range of the dimensions of a certain variable

Ø  P Chart:  measure the nonconforming fraction of an attribute

Ø  C Chart:  measures number of nonconformities

Ø  U Chart:  measures number of nonconformities per unit

·         Design for Quality

Ø  Bias for Qual

§  Requires change in corporate culture

§  Responsibility of top management

§  Cannot be delegated

§  Requires all management to set example

§  Must be pursued obsessively

Ø  Quality Function Deployment (QFD)

§  Ensure that all major requirements of the customer are identified and subsequently met or exceeded throughout the product design process

§  Voice of the Customer

§  QFD Process

·         Product planning

·         Product design

·         Process planning

·         Process-control planning

§  House of Quality



o   Manufacturing planning and control systems:  MRP, JIT, order point, purchasing systems, forecasting, demand management, distribution systems

Information systems:  types of information , degrees of access, degree of technology, types of reports

Leave a Reply

Your email address will not be published. Required fields are marked *