Inhoud
1 Introduction to Operations & Supply Chain Management ................................................................ 4
1.1 Transformation Process ............................................................................................................. 4
1.2 Supply Chain Maturity model ..................................................................................................... 5
1.3 Goods and Services Continuum ................................................................................................. 6
1.4 Manufacturing vs. Service .......................................................................................................... 6
1.5 Supply & Demand ....................................................................................................................... 6
1.6 Process Variation: Types and impacts........................................................................................ 7
1.7 Scope and Key Decisions in Operations Management .............................................................. 7
1.8 Decision-Making and Modelling ................................................................................................. 7
1.9 Global Sourcing and Procurement ............................................................................................. 9
1.10 Production process mapping (Inventory Performance Measures) ......................................... 9
1.11 Demand and Supply Uncertainty: ........................................................................................ 10
1.12 Competitiveness, Strategy, and Productivity .........................................................................11
2 Design and Process Analysis ......................................................................................................... 14
2.1 Product and Service Design ..................................................................................................... 14
2.2 Product Design Process ........................................................................................................... 14
2.3 Economic Analysis of Project Development Costs ............................................................ 14
2.4 Designing for the Customer ...................................................................................................... 15
2.5 Design for Manufacturing & Assembly (DFMA): ....................................................................... 16
2.6 Process Analysis (understand concept in own words) ............................................................. 16
2.7 ¨Production Process Mapping => Inventory value and Little’s Law.......................................... 18
2.8 Little’s Law => Examples : Car Batteries .................................................................................. 19
2.9 Production Processes & Layout Strategies .............................................................................. 19
2.10 Product Process Matrix ........................................................................................................ 20
2.11 Conclusion............................................................................................................................ 22
3 Management of Quality / Six Sigma ............................................................................................... 23
3.1 Total Quality Management (TQM) ............................................................................................ 23
3.2 Quality Standards & Awards ..................................................................................................... 23
3.3 Six Sigma Methodology ............................................................................................................ 24
3.4 Statistical Process Control (SPC) ............................................................................................. 24
3.5 Quality Tools & Techniques ...................................................................................................... 25
3.6 What is Quality Control? ........................................................................................................... 25
3.6.1 Statistical Process Control (SPC) .................................................................................... 26
3.7 Process Capability .................................................................................................................... 27
4 Lean Supply Chains ....................................................................................................................... 29
4.1 Toyota Production System (TPS) ............................................................................................. 29
, 4.2 Lean Supply Chain Components .............................................................................................. 30
4.3 Lean Production Techniques .................................................................................................... 30
4.3.1 Product Design for Lean: ................................................................................................. 30
4.3.2 Principles Lean Supply Chain Design.............................................................................. 30
4.3.3 Lean Scheduling & Systems ............................................................................................ 31
4.4 Lean Supply Chain Relationships ............................................................................................ 33
4.5 Value Stream Mapping (VSM): ................................................................................................. 34
4.6 Lean vs. Traditional Philosophies ............................................................................................. 34
4.7 Lean in Services ..................................................................................................................... 35
5 Waiting Line Analysis...................................................................................................................... 36
5.1 Introduction to Queuing Theory ................................................................................................ 36
5.2 Components of Queuing Systems ............................................................................................ 36
5.3 Waiting Line Models ................................................................................................................. 37
5.3.1 Model 1 (M/M/1) – Fast-Food Example: .......................................................................... 38
5.3.2 Model 2 (M/G/1) – Retail Example: (example in slides) .................................................. 38
5.3.3 Model 3 (M/M/k) – Bank Example:................................................................................... 38
5.4 Managing Queues – Practical Strategies ................................................................................. 39
5.5 Exponential Distribution ............................................................................................................ 39
5.6 Key Takeaways ......................................................................................................................... 39
6 Sales & Operations Planning ......................................................................................................... 40
6.1 Planning Hierarchy ................................................................................................................... 40
6.2 Dealing with Variation ............................................................................................................... 41
6.3 Aggregate Planning Strategies ................................................................................................. 41
6.4 Advanced Concepts ................................................................................................................. 43
6.5 Case Study: Bradford Manufacturing ....................................................................................... 43
6.6 Key Takeaways ......................................................................................................................... 43
7 Inventory Models ............................................................................................................................ 44
7.1 Introduction to Inventory Management ..................................................................................... 44
7.1.1 Inventory Costs ................................................................................................................ 44
7.1.2 Formulas Costs ................................................................................................................ 44
7.2 Inventory Classicification .......................................................................................................... 45
7.3 ABC Inventory Classification .................................................................................................... 45
7.4 Economic Order Quantity (EOQ) Model ................................................................................... 46
7.5 Lead time and Reorder Point ................................................................................................... 47
7.6 Safety stock .............................................................................................................................. 47
7.7 Reorder Point: When to order................................................................................................... 48
7.7.1 ROP: Under Uncertainty .................................................................................................. 48
7.8 Continuous Review Systems .................................................................................................... 49
7.9 Periodic Review Systems ......................................................................................................... 49
7.10 Single Period Inventory Model Assumptions ........................................................................ 49
, 7.11 Expected profit Function ...................................................................................................... 50
7.12 Optimal Solution ................................................................................................................... 50
7.13 Key Formulas & Visualizations ............................................................................................. 50
7.14 Practical Applications ........................................................................................................... 51
7.15 Summary Table: ................................................................................................................... 51
8 Project Management ...................................................................................................................... 52
8.1 Work Breakdown Structure (WBS) ........................................................................................... 52
8.2 Project Terminology .................................................................................................................. 53
8.3 Slack Times .............................................................................................................................. 54
8.4 Time Estimates ......................................................................................................................... 55
8.5 Probabilistic Time Estimates..................................................................................................... 55
8.6 Project Completion Time .......................................................................................................... 55
8.7 Simulation ................................................................................................................................. 56
9 Theory of Constraints (SCOM Game) (SEE PDF) ......................................................................... 56
, Supply chain management (handwritten formula sheet
allowed)
1 Introduction to Operations & Supply Chain Management
What is Operation & Supply Chain Management?
= The design, operation, and improvement of the systems that create and delivery the firm’s primary
products and services
OSCM =
• A functional field of business
• Concerned with the management of the entire production/delivery system
Operations => Manufacturing and service processes used to transform resources into products/
Supply Chain => Processes that move information and material to and from the firm.
1.1 Transformation Process
Feedback = measurements taken at various points in the transformation process
Control = the comparison of feedback against previously established standards to determine if
corrective action is needed
Inputs => Add value => outputs (all supported with continuous feedback)
Defintions:
Supply chain = Is a term that describes how organisations (suppliers, manufacturers, distributors, and
customers) are linked together.
Supply-chain management = A total system approach to managing the entire flow of information,
materials and services from raw material suppliers through factories and warehouses to the end
customer.
Mass Customization = The ability of a company to quickly deliver highly customized products and
services to different customers with minimum inventory. (Think of Nike custom shoes etc.)
Key to mass customization = Postponing tasks of differentiating (So give the
customization option as late as possible in the supply chain network and keep the product as
long as possible standardized.)
1 Introduction to Operations & Supply Chain Management ................................................................ 4
1.1 Transformation Process ............................................................................................................. 4
1.2 Supply Chain Maturity model ..................................................................................................... 5
1.3 Goods and Services Continuum ................................................................................................. 6
1.4 Manufacturing vs. Service .......................................................................................................... 6
1.5 Supply & Demand ....................................................................................................................... 6
1.6 Process Variation: Types and impacts........................................................................................ 7
1.7 Scope and Key Decisions in Operations Management .............................................................. 7
1.8 Decision-Making and Modelling ................................................................................................. 7
1.9 Global Sourcing and Procurement ............................................................................................. 9
1.10 Production process mapping (Inventory Performance Measures) ......................................... 9
1.11 Demand and Supply Uncertainty: ........................................................................................ 10
1.12 Competitiveness, Strategy, and Productivity .........................................................................11
2 Design and Process Analysis ......................................................................................................... 14
2.1 Product and Service Design ..................................................................................................... 14
2.2 Product Design Process ........................................................................................................... 14
2.3 Economic Analysis of Project Development Costs ............................................................ 14
2.4 Designing for the Customer ...................................................................................................... 15
2.5 Design for Manufacturing & Assembly (DFMA): ....................................................................... 16
2.6 Process Analysis (understand concept in own words) ............................................................. 16
2.7 ¨Production Process Mapping => Inventory value and Little’s Law.......................................... 18
2.8 Little’s Law => Examples : Car Batteries .................................................................................. 19
2.9 Production Processes & Layout Strategies .............................................................................. 19
2.10 Product Process Matrix ........................................................................................................ 20
2.11 Conclusion............................................................................................................................ 22
3 Management of Quality / Six Sigma ............................................................................................... 23
3.1 Total Quality Management (TQM) ............................................................................................ 23
3.2 Quality Standards & Awards ..................................................................................................... 23
3.3 Six Sigma Methodology ............................................................................................................ 24
3.4 Statistical Process Control (SPC) ............................................................................................. 24
3.5 Quality Tools & Techniques ...................................................................................................... 25
3.6 What is Quality Control? ........................................................................................................... 25
3.6.1 Statistical Process Control (SPC) .................................................................................... 26
3.7 Process Capability .................................................................................................................... 27
4 Lean Supply Chains ....................................................................................................................... 29
4.1 Toyota Production System (TPS) ............................................................................................. 29
, 4.2 Lean Supply Chain Components .............................................................................................. 30
4.3 Lean Production Techniques .................................................................................................... 30
4.3.1 Product Design for Lean: ................................................................................................. 30
4.3.2 Principles Lean Supply Chain Design.............................................................................. 30
4.3.3 Lean Scheduling & Systems ............................................................................................ 31
4.4 Lean Supply Chain Relationships ............................................................................................ 33
4.5 Value Stream Mapping (VSM): ................................................................................................. 34
4.6 Lean vs. Traditional Philosophies ............................................................................................. 34
4.7 Lean in Services ..................................................................................................................... 35
5 Waiting Line Analysis...................................................................................................................... 36
5.1 Introduction to Queuing Theory ................................................................................................ 36
5.2 Components of Queuing Systems ............................................................................................ 36
5.3 Waiting Line Models ................................................................................................................. 37
5.3.1 Model 1 (M/M/1) – Fast-Food Example: .......................................................................... 38
5.3.2 Model 2 (M/G/1) – Retail Example: (example in slides) .................................................. 38
5.3.3 Model 3 (M/M/k) – Bank Example:................................................................................... 38
5.4 Managing Queues – Practical Strategies ................................................................................. 39
5.5 Exponential Distribution ............................................................................................................ 39
5.6 Key Takeaways ......................................................................................................................... 39
6 Sales & Operations Planning ......................................................................................................... 40
6.1 Planning Hierarchy ................................................................................................................... 40
6.2 Dealing with Variation ............................................................................................................... 41
6.3 Aggregate Planning Strategies ................................................................................................. 41
6.4 Advanced Concepts ................................................................................................................. 43
6.5 Case Study: Bradford Manufacturing ....................................................................................... 43
6.6 Key Takeaways ......................................................................................................................... 43
7 Inventory Models ............................................................................................................................ 44
7.1 Introduction to Inventory Management ..................................................................................... 44
7.1.1 Inventory Costs ................................................................................................................ 44
7.1.2 Formulas Costs ................................................................................................................ 44
7.2 Inventory Classicification .......................................................................................................... 45
7.3 ABC Inventory Classification .................................................................................................... 45
7.4 Economic Order Quantity (EOQ) Model ................................................................................... 46
7.5 Lead time and Reorder Point ................................................................................................... 47
7.6 Safety stock .............................................................................................................................. 47
7.7 Reorder Point: When to order................................................................................................... 48
7.7.1 ROP: Under Uncertainty .................................................................................................. 48
7.8 Continuous Review Systems .................................................................................................... 49
7.9 Periodic Review Systems ......................................................................................................... 49
7.10 Single Period Inventory Model Assumptions ........................................................................ 49
, 7.11 Expected profit Function ...................................................................................................... 50
7.12 Optimal Solution ................................................................................................................... 50
7.13 Key Formulas & Visualizations ............................................................................................. 50
7.14 Practical Applications ........................................................................................................... 51
7.15 Summary Table: ................................................................................................................... 51
8 Project Management ...................................................................................................................... 52
8.1 Work Breakdown Structure (WBS) ........................................................................................... 52
8.2 Project Terminology .................................................................................................................. 53
8.3 Slack Times .............................................................................................................................. 54
8.4 Time Estimates ......................................................................................................................... 55
8.5 Probabilistic Time Estimates..................................................................................................... 55
8.6 Project Completion Time .......................................................................................................... 55
8.7 Simulation ................................................................................................................................. 56
9 Theory of Constraints (SCOM Game) (SEE PDF) ......................................................................... 56
, Supply chain management (handwritten formula sheet
allowed)
1 Introduction to Operations & Supply Chain Management
What is Operation & Supply Chain Management?
= The design, operation, and improvement of the systems that create and delivery the firm’s primary
products and services
OSCM =
• A functional field of business
• Concerned with the management of the entire production/delivery system
Operations => Manufacturing and service processes used to transform resources into products/
Supply Chain => Processes that move information and material to and from the firm.
1.1 Transformation Process
Feedback = measurements taken at various points in the transformation process
Control = the comparison of feedback against previously established standards to determine if
corrective action is needed
Inputs => Add value => outputs (all supported with continuous feedback)
Defintions:
Supply chain = Is a term that describes how organisations (suppliers, manufacturers, distributors, and
customers) are linked together.
Supply-chain management = A total system approach to managing the entire flow of information,
materials and services from raw material suppliers through factories and warehouses to the end
customer.
Mass Customization = The ability of a company to quickly deliver highly customized products and
services to different customers with minimum inventory. (Think of Nike custom shoes etc.)
Key to mass customization = Postponing tasks of differentiating (So give the
customization option as late as possible in the supply chain network and keep the product as
long as possible standardized.)
