Operations management can be viewed as encompassing supply chain management, quality management, product and process design, project management, and other topical areas defined as “the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.” (Petersen, Aase, Heiser, 2011)....
Figure 1. Manufacturing planning and control systems
It is important at this point to define what is meant by JIT and discuss its basic features.
JIT attempts to minimise all waste in manufacturing. This does not mean only in the area of inventory and scrap. Waste is anything that does not add value, and value is anything that increases usefulness and reduces cost. All areas of the business are examined to eliminate any unnecessary expenditure of time and energy. Errors are investigated to determine their cause and reduce any recurrence. It not only tries for zero inventories, but zero transactions and zero disturbances.
Some of the key features found in a JIT environment depend on a stable master schedule that balances loads and capacity. The operations must be linked and balanced, providing a smooth and timely movement from operation to operation. These operations are usually set up so they can be visually controlled by the operators and are usually executed without paperwork or complex overhead support.
Master scheduling should plan the monthly `production rate’ in lieu of discrete batch orders. The weekly/daily rates should be scheduled based on these rates. Typically, the work-in-progress inventory is reduced. Inventory is considered a waste and, as it is gradually reduced, problems are uncovered and corrected. For purchased materials, the ties to the vendors are developed to a partnership level and the delivered goods increase in quality and arrive more frequently. Product design should be determined by the customer’s definition of quality, therefore trending toward more customisation of products.
Success hinges on change
n an environment where many different product mixes are produced in any given month, reduction in the set-up time will be key. Typically, lot sizes spread the cost of expensive setups across many parts. If you can reduce the set-up times, it follows that the lot sizes can be reduced accordingly. Reductions can be accomplished by separating setups into internal and external. In 1985 Shigeo Shingo estimated that set-up can be reduced 30 to 50 per cent merely by
The following definition reflects the nature of Operations management: 'Operations management is about the way organizations produce goods and services.
In addition, the author of this paper will provide a personal definition of what operations management means and why is important to a healthcare organization.
According to Beardwell & Claydon (2010) there is no universal definition of human resource management, therefore for the purpose of this it is defined as ‘a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques’ (Storey, 2007 cited in Beardwell & Claydon, 2010).
The term operations management is define as the decisions, activities, and the responsibility of managers to use the available resources to develop a specific product or perform a specific service.
Six research papers are on operations management with new technologies in a global context. How companies’ boundaries blur in the integrated and globalized context in the age of e-business is one of the focal research paper topics. This is followed by improving supply chain information velocity, product customization, and cost through extended enterprise applications. How information technology and automated processes enable “mass customization” where products can be individualized profitably is the topic of a research paper. Ethical manufacturing is reviewed in a separate research paper.