Operationeel management
Inhoudsopgave
Hoofdstuk 0: Introduction ................................................................................................................................ 4
1. Why ............................................................................................................................................................. 4
2. Aims ............................................................................................................................................................. 5
3. Previous knowledge/ where in the programme .......................................................................................... 5
4. Content ........................................................................................................................................................ 5
5. Schedule ...................................................................................................................................................... 5
6. Course material ........................................................................................................................................... 6
7. Contact information .................................................................................................................................... 6
8. Format/ study load ...................................................................................................................................... 6
9. Exam ............................................................................................................................................................ 6
Hoofdstuk 1: Introduction operational management ....................................................................................... 7
1. What is operations management ................................................................................................................ 7
Operations and managing ............................................................................................................................... 7
Examples ......................................................................................................................................................... 8
In view of an organization’s objective ............................................................................................................. 8
2. Operations management responsibilities ................................................................................................... 8
Design .............................................................................................................................................................. 8
Planning........................................................................................................................................................... 9
Implementation and control ........................................................................................................................... 9
Improvement ................................................................................................................................................ 10
Protection...................................................................................................................................................... 10
3. Operations management levels ................................................................................................................ 10
Research-based ............................................................................................................................................. 10
Hierarchy-based ............................................................................................................................................ 11
4. Operations management competitive dimensions ................................................................................... 11
Time .............................................................................................................................................................. 12
Cost ............................................................................................................................................................... 12
Quality ........................................................................................................................................................... 12
Flexibility ....................................................................................................................................................... 12
5. Operations management components ...................................................................................................... 12
Product/service ............................................................................................................................................. 13
Process = what does it take to produce the products................................................................................... 14
Supply chain .................................................................................................................................................. 15
1
, 6. Operations management history .............................................................................................................. 17
7. This course ................................................................................................................................................. 18
Hoofdstuk 2: Inventory management ............................................................................................................. 19
1. Introductory concepts ............................................................................................................................... 19
Terminology .................................................................................................................................................. 19
Push and pull ................................................................................................................................................. 20
Inventory management can be crucial .......................................................................................................... 20
2. Known demand ......................................................................................................................................... 22
Known stable demand – EOQ model ............................................................................................................ 22
Know variable demand – Wagner-Whitin algorithm .................................................................................... 30
3. Unknown demand ..................................................................................................................................... 38
(OP,Q) model ................................................................................................................................................. 38
(M,T) model ................................................................................................................................................... 43
(s,S) model..................................................................................................................................................... 45
ABC classification .......................................................................................................................................... 46
Service level .................................................................................................................................................. 47
4. Inventory pooling ...................................................................................................................................... 51
Inventory pooling objectives ......................................................................................................................... 51
Inventory pooling concept ............................................................................................................................ 51
Inventory pooling parameters ...................................................................................................................... 51
Inventory pooling different rounds ............................................................................................................... 52
Inventory pooling links .................................................................................................................................. 55
Hoofdstuk 3: Material requirements planning ............................................................................................... 56
1. Introduction ............................................................................................................................................... 56
Definition and goal of material requirements planning ................................................................................ 56
Bill of material = BOM ................................................................................................................................... 56
Additional definitions .................................................................................................................................... 57
2. Evolution Material requirements planning = MRP .................................................................................... 57
3. Material Requirements planning = MRP ................................................................................................... 58
Example 1 BOM ............................................................................................................................................. 58
Example 2 BOM ............................................................................................................................................. 59
Exercise 3.1 ................................................................................................................................................... 59
MRP ............................................................................................................................................................... 60
MRP example 2 tricycle ................................................................................................................................. 61
MRP link with inventory management and master production schedule .................................................... 64
Exercise 3.2 ................................................................................................................................................... 64
Hoofdstuk 4: Detailed production planning at finite capacity......................................................................... 65
1. Introduction ............................................................................................................................................... 65
Material and capacity-oriented systems ....................................................................................................... 65
Bill of material and bill of process ................................................................................................................. 65
Exercise 4.1 ................................................................................................................................................... 66
2
, Bill of material and bill of process: continued ............................................................................................... 67
2. Problem setting ......................................................................................................................................... 67
Scheduling problem ...................................................................................................................................... 67
3. Theory of constraints ................................................................................................................................. 69
Eliyahu Goldratt (1947-2011) ........................................................................................................................ 69
Theory of constraints: key insight ................................................................................................................. 69
Theory of constraints: problem setting ......................................................................................................... 69
Theory of constraints: input data .................................................................................................................. 70
Theory of constraints: the 5 steps ................................................................................................................. 71
Exercise 4.2 ................................................................................................................................................... 71
Exercise 4.3 ................................................................................................................................................... 71
Exercise 4.4 ................................................................................................................................................... 72
Exercise 4.5 ................................................................................................................................................... 73
Exercise 4.6 ................................................................................................................................................... 74
Exercise 4.7 ................................................................................................................................................... 74
Setup time workstation C = 80 min per setup (= for each product batch).................................................... 75
Intuition batch size ........................................................................................................................................ 76
Batch size law ................................................................................................................................................ 77
Exercise 4.8 ................................................................................................................................................... 79
Drum ............................................................................................................................................................. 79
Exercise 4.9 ................................................................................................................................................... 80
Exercise 4.10 ................................................................................................................................................. 80
Hoofdstuk 5: Cycle time as performance measure and key concept in planning............................................. 81
1. Introduction cycle time .............................................................................................................................. 81
2. Flow system ............................................................................................................................................... 82
3. Station science........................................................................................................................................... 83
Scenario 1 ...................................................................................................................................................... 83
Exercise 5.1 ................................................................................................................................................... 84
Exercise 5.2 ................................................................................................................................................... 84
Station science: input parameters ................................................................................................................ 85
Exercise 5.3 ................................................................................................................................................... 86
Station science: variability ............................................................................................................................ 86
Station science: coefficient of variation ........................................................................................................ 87
Station science: output parameters .............................................................................................................. 87
Station science: estimation average cycle time ............................................................................................ 88
Exercise 5.4 ................................................................................................................................................... 88
Little’s law ..................................................................................................................................................... 89
Exercise 5.5 ................................................................................................................................................... 89
Exercise 5.6 ................................................................................................................................................... 89
Utilization law ............................................................................................................................................... 90
Variability law ................................................................................................................................................ 91
Buffering law ................................................................................................................................................. 91
Exercise 5.7 ................................................................................................................................................... 92
Capacity law .................................................................................................................................................. 92
Lead time law ................................................................................................................................................ 93
3
, 4. Line science................................................................................................................................................ 93
Line science: estimation average cycle time ................................................................................................. 93
Exercise 5.8: linkinq equation: high rho ........................................................................................................ 94
Exercise 5.9: linking equation: low rho ......................................................................................................... 94
Line science: linking equation ....................................................................................................................... 95
Exercise 5.10 ................................................................................................................................................. 95
Flow variability law........................................................................................................................................ 95
Line science: limited buffer capacity ............................................................................................................. 96
Inventory law ................................................................................................................................................ 97
Hoofdstuk 6: Lean operations ........................................................................................................................ 98
1. Introduction lean operations ..................................................................................................................... 98
JIT philosophy ................................................................................................................................................ 98
JIT = “zero-inventory production” ................................................................................................................. 98
Muda, mura and muri ................................................................................................................................... 98
Muda, mura, muri result in … ....................................................................................................................... 99
Kaizen: towards lower inventory-capacity-time buffer .............................................................................. 100
2. Just-in-Time ideals/ enablers ................................................................................................................... 100
Zero defects/ zero quality control ............................................................................................................... 101
Zero breakdowns ........................................................................................................................................ 101
Zero setups .................................................................................................................................................. 101
Zero surging................................................................................................................................................. 101
Zero (excess) lot size/ lot size of one .......................................................................................................... 103
Zeo handling ................................................................................................................................................ 103
Zero lead time ............................................................................................................................................. 104
JIT lessons .................................................................................................................................................... 104
3. Kanban .................................................................................................................................................... 104
Example Kanban .......................................................................................................................................... 105
Pull benefits achieved by WIP cap .............................................................................................................. 105
Exercise 6.2 ................................................................................................................................................. 105
Hoofdstuk 0: Introduction
1. Why
- OM is belangrijk om strategische groei te gaan creëren
• Strategisch voordeel behalen door operaties goed te gaan managen
- OM biedt een systematische manier aan om naar processen te gaan kijken
• Proces = omzetten van inputs naar outputs
- De concepten en tools van OM worden ook gebruikt in andere domeinen
- OM is belangrijk in bepaalde jobs
• Plant manager
• Warehouse manager
• Logistics manager
4
Inhoudsopgave
Hoofdstuk 0: Introduction ................................................................................................................................ 4
1. Why ............................................................................................................................................................. 4
2. Aims ............................................................................................................................................................. 5
3. Previous knowledge/ where in the programme .......................................................................................... 5
4. Content ........................................................................................................................................................ 5
5. Schedule ...................................................................................................................................................... 5
6. Course material ........................................................................................................................................... 6
7. Contact information .................................................................................................................................... 6
8. Format/ study load ...................................................................................................................................... 6
9. Exam ............................................................................................................................................................ 6
Hoofdstuk 1: Introduction operational management ....................................................................................... 7
1. What is operations management ................................................................................................................ 7
Operations and managing ............................................................................................................................... 7
Examples ......................................................................................................................................................... 8
In view of an organization’s objective ............................................................................................................. 8
2. Operations management responsibilities ................................................................................................... 8
Design .............................................................................................................................................................. 8
Planning........................................................................................................................................................... 9
Implementation and control ........................................................................................................................... 9
Improvement ................................................................................................................................................ 10
Protection...................................................................................................................................................... 10
3. Operations management levels ................................................................................................................ 10
Research-based ............................................................................................................................................. 10
Hierarchy-based ............................................................................................................................................ 11
4. Operations management competitive dimensions ................................................................................... 11
Time .............................................................................................................................................................. 12
Cost ............................................................................................................................................................... 12
Quality ........................................................................................................................................................... 12
Flexibility ....................................................................................................................................................... 12
5. Operations management components ...................................................................................................... 12
Product/service ............................................................................................................................................. 13
Process = what does it take to produce the products................................................................................... 14
Supply chain .................................................................................................................................................. 15
1
, 6. Operations management history .............................................................................................................. 17
7. This course ................................................................................................................................................. 18
Hoofdstuk 2: Inventory management ............................................................................................................. 19
1. Introductory concepts ............................................................................................................................... 19
Terminology .................................................................................................................................................. 19
Push and pull ................................................................................................................................................. 20
Inventory management can be crucial .......................................................................................................... 20
2. Known demand ......................................................................................................................................... 22
Known stable demand – EOQ model ............................................................................................................ 22
Know variable demand – Wagner-Whitin algorithm .................................................................................... 30
3. Unknown demand ..................................................................................................................................... 38
(OP,Q) model ................................................................................................................................................. 38
(M,T) model ................................................................................................................................................... 43
(s,S) model..................................................................................................................................................... 45
ABC classification .......................................................................................................................................... 46
Service level .................................................................................................................................................. 47
4. Inventory pooling ...................................................................................................................................... 51
Inventory pooling objectives ......................................................................................................................... 51
Inventory pooling concept ............................................................................................................................ 51
Inventory pooling parameters ...................................................................................................................... 51
Inventory pooling different rounds ............................................................................................................... 52
Inventory pooling links .................................................................................................................................. 55
Hoofdstuk 3: Material requirements planning ............................................................................................... 56
1. Introduction ............................................................................................................................................... 56
Definition and goal of material requirements planning ................................................................................ 56
Bill of material = BOM ................................................................................................................................... 56
Additional definitions .................................................................................................................................... 57
2. Evolution Material requirements planning = MRP .................................................................................... 57
3. Material Requirements planning = MRP ................................................................................................... 58
Example 1 BOM ............................................................................................................................................. 58
Example 2 BOM ............................................................................................................................................. 59
Exercise 3.1 ................................................................................................................................................... 59
MRP ............................................................................................................................................................... 60
MRP example 2 tricycle ................................................................................................................................. 61
MRP link with inventory management and master production schedule .................................................... 64
Exercise 3.2 ................................................................................................................................................... 64
Hoofdstuk 4: Detailed production planning at finite capacity......................................................................... 65
1. Introduction ............................................................................................................................................... 65
Material and capacity-oriented systems ....................................................................................................... 65
Bill of material and bill of process ................................................................................................................. 65
Exercise 4.1 ................................................................................................................................................... 66
2
, Bill of material and bill of process: continued ............................................................................................... 67
2. Problem setting ......................................................................................................................................... 67
Scheduling problem ...................................................................................................................................... 67
3. Theory of constraints ................................................................................................................................. 69
Eliyahu Goldratt (1947-2011) ........................................................................................................................ 69
Theory of constraints: key insight ................................................................................................................. 69
Theory of constraints: problem setting ......................................................................................................... 69
Theory of constraints: input data .................................................................................................................. 70
Theory of constraints: the 5 steps ................................................................................................................. 71
Exercise 4.2 ................................................................................................................................................... 71
Exercise 4.3 ................................................................................................................................................... 71
Exercise 4.4 ................................................................................................................................................... 72
Exercise 4.5 ................................................................................................................................................... 73
Exercise 4.6 ................................................................................................................................................... 74
Exercise 4.7 ................................................................................................................................................... 74
Setup time workstation C = 80 min per setup (= for each product batch).................................................... 75
Intuition batch size ........................................................................................................................................ 76
Batch size law ................................................................................................................................................ 77
Exercise 4.8 ................................................................................................................................................... 79
Drum ............................................................................................................................................................. 79
Exercise 4.9 ................................................................................................................................................... 80
Exercise 4.10 ................................................................................................................................................. 80
Hoofdstuk 5: Cycle time as performance measure and key concept in planning............................................. 81
1. Introduction cycle time .............................................................................................................................. 81
2. Flow system ............................................................................................................................................... 82
3. Station science........................................................................................................................................... 83
Scenario 1 ...................................................................................................................................................... 83
Exercise 5.1 ................................................................................................................................................... 84
Exercise 5.2 ................................................................................................................................................... 84
Station science: input parameters ................................................................................................................ 85
Exercise 5.3 ................................................................................................................................................... 86
Station science: variability ............................................................................................................................ 86
Station science: coefficient of variation ........................................................................................................ 87
Station science: output parameters .............................................................................................................. 87
Station science: estimation average cycle time ............................................................................................ 88
Exercise 5.4 ................................................................................................................................................... 88
Little’s law ..................................................................................................................................................... 89
Exercise 5.5 ................................................................................................................................................... 89
Exercise 5.6 ................................................................................................................................................... 89
Utilization law ............................................................................................................................................... 90
Variability law ................................................................................................................................................ 91
Buffering law ................................................................................................................................................. 91
Exercise 5.7 ................................................................................................................................................... 92
Capacity law .................................................................................................................................................. 92
Lead time law ................................................................................................................................................ 93
3
, 4. Line science................................................................................................................................................ 93
Line science: estimation average cycle time ................................................................................................. 93
Exercise 5.8: linkinq equation: high rho ........................................................................................................ 94
Exercise 5.9: linking equation: low rho ......................................................................................................... 94
Line science: linking equation ....................................................................................................................... 95
Exercise 5.10 ................................................................................................................................................. 95
Flow variability law........................................................................................................................................ 95
Line science: limited buffer capacity ............................................................................................................. 96
Inventory law ................................................................................................................................................ 97
Hoofdstuk 6: Lean operations ........................................................................................................................ 98
1. Introduction lean operations ..................................................................................................................... 98
JIT philosophy ................................................................................................................................................ 98
JIT = “zero-inventory production” ................................................................................................................. 98
Muda, mura and muri ................................................................................................................................... 98
Muda, mura, muri result in … ....................................................................................................................... 99
Kaizen: towards lower inventory-capacity-time buffer .............................................................................. 100
2. Just-in-Time ideals/ enablers ................................................................................................................... 100
Zero defects/ zero quality control ............................................................................................................... 101
Zero breakdowns ........................................................................................................................................ 101
Zero setups .................................................................................................................................................. 101
Zero surging................................................................................................................................................. 101
Zero (excess) lot size/ lot size of one .......................................................................................................... 103
Zeo handling ................................................................................................................................................ 103
Zero lead time ............................................................................................................................................. 104
JIT lessons .................................................................................................................................................... 104
3. Kanban .................................................................................................................................................... 104
Example Kanban .......................................................................................................................................... 105
Pull benefits achieved by WIP cap .............................................................................................................. 105
Exercise 6.2 ................................................................................................................................................. 105
Hoofdstuk 0: Introduction
1. Why
- OM is belangrijk om strategische groei te gaan creëren
• Strategisch voordeel behalen door operaties goed te gaan managen
- OM biedt een systematische manier aan om naar processen te gaan kijken
• Proces = omzetten van inputs naar outputs
- De concepten en tools van OM worden ook gebruikt in andere domeinen
- OM is belangrijk in bepaalde jobs
• Plant manager
• Warehouse manager
• Logistics manager
4
