Prototype and final design

5. Prototype and final design

Provide a sample for the customer to test. If positive, the final design can be compiled.

The design of operations processes

The design of operations processes to manufacture products or provide services is just as important as the design of the products and services themselves. Without both, it is impossible to develop, manufacture or provide a successful product or service.

The design of the operations network

No operations process exists in isolation – it is part of a greater integrated operations network. Besides the specific operations process, the operations network also includes suppliers of materials, intermediaries and final customers/clients.

Layout and flow of the manufacturing or service provision facility

The layout of a facility entails the three steps below:  Selecting the process type

This involves selecting the appropriate process type.  Selecting the basic layout type

This involves selecting a basic layout type. There are four basic layout types:

 Fixed position layout – the product cannot be shifted because of its size, shape or location  Process layout – similar processes are grouped together into sections.  Product layout- different processes or operations required to manufacture specific product

are arranged in consecutive order.  Cellular layout – processes are placed in a cell and the particular cell then arranged accor

 ding to either a process or a product layout.  Detailed design of the layout

Involves the selection of a basic layout type merely provides an indication of the broad layout of the operations facility.

The application of process technology

All operations processes use one or the other form of process technology. Process technology indicates the machines, equipment and apparatus used in a transformation process to transform materials, information and customer/clients so that products are manufactured or services provided.

Job design and work organization

Operations management not only focuses on the technologies, systems, procedures and facilities in

a business but decisively also on people’s involvement in the operations activity itself. The way in which human resources are managed in a business has a fundamental effect on the

effectiveness of the operations function.

5.4 PLANNING AND CONTROL OF THE OPERATIONS PROCESS The nature of planning and control of the operations process

Planning and control is aimed at reconciling the provision ability of operations facility with the demand for specific products and services. This occurs in 3 dimensions viz. volume (quantity), timing and quality.

The following tasks are involved:

 Loading of tasks- this refers to the volume or quantity of work allocated to a particular work centre

 Sequencing of tasks – this refers to the sequence in which tasks are performed. Sequence of tasks can be determined beforehand by the use of priority rules.

 Scheduling tasks- this refers to the use of detailed roster which indicates when a specific task should start and when it should be completed.

Capacity planning and control

This focuses on the provision of manufacturing/services capacity of an operations process. When a balance between available capacity and expected demand is reached, the business will have a satisfied customers/clients and acceptable profits.

The nature of capacity planning and control

Long-term capacity is determining during design the design of the operations process (medium and long-term) and is possible to adapt the capacity of the operations process to changes in demand for particular products/services. Certain machinery/equipment can be used for longer periods daily and overtime can be worked, over peak periods 3 steps must be applied to satisfy the expected demand.

The required capacity to satisfy the expected demand must be obtained by applying the following three steps:  Determine the total demand and required capacity  Identify alternative capacity plans  Choice of a particular capacity planning and control approach

Techniques and methods that can be used in capacity and planning control

Techniques and methods can be applied in capacity planning. The methods are:

Moving average demand forecasting technique

This technique is based on the availability of the actual demand over preceding periods. It is suitable where in certain cases products have a stable demand pattern over the short-term. The disadvantage is if the demands continue to grow, the predicted demand will always be too low

Cumulative representations of demand and capacity

This is used to evaluate the effect of different capacity plans graphically.

Inventory and purchasing planning and control

Inventory and the purchase of materials have the significant implications for the smooth functioning of the transforming process, which the operations manager is mainly responsible.

Inventory can be defined as all stored resources (material, information or customer/clients) required for the operations process. Communication between the operations manager and the purchasing manager must be effective in managing inventory level optimally.

Quality planning and control

Quality is vital in a business but it is not confined to operations management. Total Quality Management (TQM) is a quality product and services can be manufactured or provided if every function in a business is committed to the achievement of such an objective. Quality is one of the main methods whereby value to Products/services can be added to and the same time obtaining a Long-term competitive advantage. Better quality influences both factors that contribute to a business’s profitability (income and cost). Income can be increased by more sales and greater market share; costs can be reduced by lower repair and inspection costs, reduced wastage and inventory shorter processing time.

The nature of quality planning and control

The aim is to ensure that the products manufactured or services provided should conform (satisfy) design specifications. The ultimate goal is to satisfy customer/client needs.

Steps in the Quality planning and control

 Defining the quality characteristics of the product or service: The design specifications for products and services are determined in the design activity. Design specifications as such are not monitored by quality planning and control, but rather by the operations process that manufactures the products or provides the service.

 Measuring the quality characteristics of the product or service: Each individual product or service, the quality characteristics should be defined in such a way that they can be measured and controlled.

 Set standards for each quality characteristic of the product or service: Once the operations manager has ascertain which and how, quality characteristics are going to be measured, the next step is to set quality standards against which the achievement of, and conformity to, each quality characteristic can be measured.

 Control of quality against set standards: Once realistic standards for measuring the output of the operations process have been laid down, the next step is to determine whether the product or

service measures up to them.  Identifying and rectifying the causes of poor quality: An important goal in quality planning and

control is to identify and rectify poor quality and the reasons for it.  Continuous improvement of quality: Quality is one of the most important ways of adding value

to products in order to obtain a long-term competitive advantage – hence the importance of improving quality on a continuous basis.

5.5. OPERATIONS IMPROVEMENTS The nature of operations improvements

Before any operations process can be improved, the current performance must be determined. Performance Management is a prerequisite for any improvement to take place. When measuring performance, quality, service, adaptability, lead-time, cost and variability satisfies current operations management.

Types of performance standards

 Historical Standards – present performance is compared to past.  Target performance standards- present performance is compared to predetermined standards

that indicate an acceptable or reasonable level of performance  Competitors performance standards- present performances compared to one or more similar

competitors  Absolute performance standards- current performance is compared to a maximum performance

(theoretically)

Priorities for improvement

Once the present performance has been evaluated and compared, areas for improvements become

a priority. Objectives and satisfaction of customers/clients must analyze to determine which areas need improvement.

Failure prevention and recovery

Failures are inevitable. Acceptance of failures is important, thus continuous efforts to limit failure must be made.

Types of failure

 Design failure- these occur when the design of the process is found to be wrong or inadequate.  Facility Failure- These happen when one or more components of the facility itself, such as

machines or equipment, breaks and causes parts of, or the whole of the facility to grind to a halt, for example, if lightning strikes all the computers at a service provider.

 Staff Failure- These happen when mistakes are made or set procedures are not followed, for  Staff Failure- These happen when mistakes are made or set procedures are not followed, for

 Supplier Failure- These happen when suppliers do not provide products according to an agreement, for example, where supermarkets place advertisements for special offers and suppliers do not deliver the order on time.

 Customer/clients failures- these occur when a product or service is used incorrectly or used for a purpose for which it is not designed.

Failure detection and analysis

Acceptance of failure allows operations managers the ability to have mechanisms in place to detect them and determine the causes. Some mechanisms to detect failures include process monitoring, complaints and feedback questioners from customers/clients.

Systems reliability improvement

After identifying the causes and consequences of failure, measures must be taken to prevent further occurrences. Reliability will be increased.

Recovery of failures

When failures do occur, recover procedures and contingency plans should be devised to minimize any potential detrimental effects on consumers.

Total Quality Management (TQM)

The quality of products and services is not the responsibility of the operations manager only but the effort of the entire business.

Total Quality Management Model

QUALITY TEAMS CUSTOMER/CLIENT

Culture Communication

SUPPLIERS INTERFACE PROCESSES

QUALITY

QUALITY TECHNIQUES & SYSTEMS

Commitment

METHODS

Figure 5.1: Total Quality management model Source: Oakland, S.S Total quality management oxford, 2003 p21

Definition of TQM

A management philosophy and doing with the primary aim of customer/service satisfaction, with high quality.

The following is important to TQM.

 Making each and every employees in the business quality conscious and hold them responsible to contribute to TQM

 Identifying BUSINESS MANAGEMENT for all costs of achieving quality  Doing things right the first time  Developing and implementing systems and procedures for quality and its improvement  Establishing a continuous process for improvement

The ISO 9000 quality standard for quality systems

Improving quality in a business requires more than good intentions. A quality system must be developed. The ISO 9000 series is a quality standard used throughout the world to lay down the requirements for specific quality systems for businesses. It provides a comprehensive recommendation as to how quality system should be compiled for a business. It provides various guidelines on managerial responsibility, quality systems, design etc.

The Implementation of TQM

The implementation of TQM determines ultimate success or failure. The factors to be considered are as follows:  Integration of TQM in the business strategy  Top management and employee’s support and involvement  Team work in improvement initiatives (teams)  Feedback on quality successes that have been achieved  The creation of quality awareness  Training of employees in quality techniques and method

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