Académique Documents
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XLRI
Rajiv Misra
DID YOU KNOW?
Rajiv Misra
DID YOU KNOW?
ClockSpeed
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WILL HUMANS REMAIN IN OPERATIONS
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OIL
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OIL
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RARE EARTH
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OPERATIONS MANAGEMENT
THE CONSTANTS?
1. Process
2 Inventory
3. Project
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COUNTRY TO WATCH
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COUNTRY TO WATCH:CHINA
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WHAT MAY NOT CHANGE?
1. Process
2 Inventory
3. Project
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SHELL GAME LEARNINGS
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STRENGTHS
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OPPORTUNITIES FOR IMPROVEMENT
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BAD APPLE THEORY
BAD APPLE THEORY
• Process or Person
THE CONCEPT OF BOTTLENECK
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THE CONCEPT OF BOTTLENECK
Supply Demand
10/hr 12/hr 8/hr 11/hr 10/hr
10/hr 10/hr
System Constraint
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MEASUREMENTS DRIVE BEHAVIOR!!!
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VALUE ADDED WORK
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VALUE ADDED WORK VS NON VALUE ADDED
Seven Muda
(waste)
Non Value adding to product or Waiting
service from the POV of the Customer
Unnecessary
Motion
Inappropriate Unnecessary
Processing Inventory
Defects
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CANNOT HAVE A ONE SIZE FIT ALL
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THE CAST OF CHARACTERS
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WHOM SHOULD WE REMEMBER FROM
HISTORY?
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LESSONS FROM HISTORY
YEAR CONTRIBUTION BY
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EARLY PRACTICES – ADAM SMITH
An Economist
1776 – “Wealth of Nations”
Proposed the “Division of Labor”
Example : Pin Manufacturing Industry
10 workmen
Individually making pins - 10 / day
Workmen doing specialized tasks – 48000 / day
Work in 1852
A Mathematician
Expanded on Adam Smith’s ideas
Costing
Four more Reasons
Reduces time for learning
Reduces Waste
Attainment of higher Skills
We can match skill to task
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CLAUDE SHANNON – HICK HYMAN LAW
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OPERATIONS MANAGEMENT
A HISTORICAL SUMMARY
YEAR CONTRIBUTION BY
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INTERCHANGEABLE PARTS
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FILE CLIP
• File Clip
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PEN
• Pen
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THE CONTAINER
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AFTER INTERCHANGEABLE PARTS WHAT?
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THE EGG SHELL
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OPERATIONS MANAGEMENT
A HISTORICAL SUMMARY
YEAR CONTRIBUTION BY
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SCIENTIFIC MANAGEMENT
Frederick W.
Taylor
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SCIENTIFIC MANAGEMENT
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SCIENTIFIC MANAGEMENT
Book and Movie: Cheaper by the Dozen, Book: Bells on their toesRajiv Misra
SCIENTIFIC MANAGEMENT IN PRACTICE
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SCIENTIFIC MANAGEMENT IN PRACTICE
Henry Ford
• Born 1863; died 1947 ‘Make them all
alike!’
• In 1903, created Ford
Motor Company
• In 1913, first used
moving assembly line
to make Model T 1995 Corel
Corp.
– Unfinished product
moved by conveyor
past work station
• Paid workers very well for 1911 ($5/day!)
Rajiv Misra
SCIENTIFIC MANAGEMENT - PROPONENTS
Henry Ford
• Model A to T in 5 years ‘Make them all
alike!’
• Model A, time – 8.56 hrs
Andrew Carnegie
• Steel Industry: 1870 $100/Ton, 1890: $12/Ton
Sears
• Automated Order processing / Warehouse
– Mail Order Company
– Stock turns (Inventory Turns)
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SCIENTIFIC MANAGEMENT
To American production, without which this war would have been lost
Joseph Stalin
Toasting US at the Teheran summit, 1943
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SCIENTIFIC MANAGEMENT
“one best way to do a job exists and manager’s responsibility to find it”
A HISTORICAL SUMMARY
YEAR CONTRIBUTION BY
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OPERATIONS MANAGEMENT
A HISTORICAL SUMMARY
YEAR CONTRIBUTION BY
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GANTT CHART
Time Period
Activity
J F M A M J J
Design
Build
Test
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GANTT CHART
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COSTS ARE ALSO IMPORTANT
A HISTORICAL SUMMARY
YEAR CONTRIBUTION BY
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OPERATIONS MANAGEMENT
A HISTORICAL SUMMARY
YEAR CONTRIBUTION BY
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HUMAN RELATIONS – ELTON MAYO
Hawthorne effect.
Elton Mayo was trying to study the effect of lighting on
productivity at a Western Electric plant in Hawthorne, Illinois. He
divided workers into two groups. For the test group, he increased
the illumination in their work area. Productivity went up. For the
control group, he left the lighting the same. Productivity went up.
That made no sense to Mayo, so he tried another study. He
took a group of female workers, gave them regularly scheduled
rest periods, company paid lunches and shorter work weeks.
Productivity went up. Eighteen months later, all those perks were
eliminated. And productivity? It went up once again.
Mayo concluded that productivity increased every time he
paid attention to workers.
Tip: Pay attention to your people.
Rajiv Misra
TQM: TOTAL QUALITY MANAGEMENT
Six Sigma
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OPERATIONS MANAGEMENT
A HISTORICAL SUMMARY
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OPERATIONS MANAGEMENT
A HISTORICAL SUMMARY
YEAR CONTRIBUTION BY
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STATISTICAL QUALITY CONTROL
W. Edwards Deming
• Born 1900; died 1993
• Engineer & physicist
• Credited with teaching Japan
quality control methods in
post-WW2
• Used statistics to analyze
process
• His methods involve workers
in decisions
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STATISTICAL QUALITY CONTROL
W. Edwards Deming
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STATISTICAL QUALITY CONTROL
Paper Tearing
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STATISTICAL QUALITY CONTROL
Sample
50 Value
40 UCL
30 Average
20
10 LCL
0
1 5 9 13 17 21
Time
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STATISTICAL QUALITY CONTROL
THE THREE GURUS
• Control Costs
• Prevention
• Appraisal
• Failure Costs
• Internal
• External
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STATISTICAL QUALITY CONTROL
THE THREE GURUS
• Deming
• Juran (Cost of Poor Quality)
• Crosby (Quality is Free, Eventually) Total Cost of Ownership
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OPERATIONS MANAGEMENT
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FOCUSED
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TOC
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LEAN
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OPERATIONS MANAGEMENT
YEAR CONTRIBUTION BY
1940 OR IN WAR
1948 LP/ DIGITAL COMPUTER
1950 NON LINEAR PROG./ STOCHASTIC
1970 OPERATIONS STRATEGY/ MRP SKINNER/ORLICKY
1980 QUALITY IN JAPAN/CAD-CAM Goal – GOLDRATT/ OHNO
1990 INTERNET/ERP
1995 SCM/CRM
2000 INTEGRATED SOLUTION
2015 PRESCRIPTIVE SOLUTIONS ???
Rajiv Misra
HISTORICAL SUMMARY
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THE FOUR PLANTS TO STUDY
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THE SOLUTION TOOL KIT
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THE SOLUTION TOOL KIT
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THE SOLUTION TOOL KIT
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THE FOUR PLANTS TO STUDY
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