Expert answer:Planning and Control Systems & Lean Operations Pap

  

Solved by verified expert:Please write an essay on the topic below. See the attachments for more details.Topic: Essay on Planning and Control Systems & Lean OperationsOverview:Any company, regardless of size, product or service, is one to which you can apply the principles of operational excellence. The basis for this paper will be either a factual case from your own work experience or a published case. For this paper, you will describe the situation in the case and then apply appropriate principles of planning and control systems (Ch. 14) & lean operations (Ch. 15). The case should be treated as a problem presented to you by your company’s top management for analysis and a recommended course of action. In the paper, you will discuss and make a recommendation for improvement in the operations of the company based on the concepts you learned in chapters fourteen and fifteen.Chapter 14 and chapter 15 are attached. Please ensure that you read the requirements and guidelines for this essay in the outline document.
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Topic: Planning and Control Systems & Lean Operations
Overview:
Any company, regardless of size, product or service, is one to which you can apply the principles
of operational excellence. The basis for this paper will be either a factual case from your own
work experience or a published case. For this paper, you will describe the situation in the case
and then apply appropriate principles of planning and control systems (Ch. 14) & lean
operations (Ch. 15). The case should be treated as a problem presented to you by your
company’s top management for analysis and a recommended course of action. In the paper,
you will discuss and make a recommendation for improvement in the operations of the
company based on the concepts you learned in chapters fourteen and fifteen.
Chapter 14 and chapter 15 are attached.
Your paper should be at minimum 8 double-spaced paragraphs (32 minimum
sentences)
Your paper must include the following:
• Company Overview: 1 paragraph; 4 minimum sentences
• Situation/Problem: 1 paragraph; 4 minimum sentences
• Recommendations from Ch. 14 (Planning and Control Systems): 3 paragraphs;
each paragraph must include 4 minimum sentences for a total of 12
sentences
• Recommendations from Ch. 15 (Lean Operations): 3 paragraphs;
each paragraph must include 4 minimum sentences for a total of 12
sentence
• Conclusion
You must include an APA formatted title page and a separate reference page that includes your
references in APA format. At minimum, your textbook should be included
Text Book: Slack, N., Brandon-Jones, A., Johnston, R. (2016). Operations Management. 8th ed.
Pearson. ISBN: 9781292098678
Criteria for Grading:
Knowledge of Subject Matter – 40 points
Quality of Research – 30 points
Presentation of Ideas and Mechanics – 30 points
Operations Management
8th edition
Chapter 14
Planning and Control Systems
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 14.1
This chapter examines planning and control
systems
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Key questions
In Chapter 14 – Planning and control systems – Slack et al.
identify the following key questions…
 What are planning and control systems?
 What is enterprise resource planning, and how did it
develop into the most common planning and control
system?
 How should planning and control systems be
implemented?
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 14.3
The customer interface as a ‘customer experience’
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The supplier interface as a ‘customer experience’
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Hierarchical planning and control
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Figure 14.6
The development of ERP
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ERP integrates information from all parts of the
organization
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Strategic ERP implementation success factors






Strategic critical success factors
Top management commitment and support – strong and committed leadership at
the top management level is essential to the success of an ERP implementation.
Visioning and planning – articulating a business vision to the organization,
identifying clear goals and objectives and providing a clear link between business
goals and systems strategy.
Project champion – the individual should possess strong leadership skills as well
as business, technical and personal managerial competencies.
Implementation strategy and timeframe – implement the ERP under a timephased approach.
Project management – the ongoing management of the implementation plan.
Change management – this concept refers to the need for the implementation
team to formally prepare a change management program and be conscious of
the need to consider the implications of such a project. One key task is to build
user acceptance of the project and a positive employee attitude. This might be
accomplished through education about the benefits and need for an ERP system.
Part of this building of user acceptance should also involve securing the support
of opinion leaders throughout the organization. There is also a need for the team
leader to effectively negotiate between various political turfs. Some authorities
also stress that in planning the ERP project, it must be looked upon as a change
management initiative, not an IT initiative.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Tactical ERP implementation success factors









Tactical critical success factors
Balanced team – the need for an implementation team that spans the organization, as well as one
that possesses a balance of business and IT skills.
Project team – there is a critical need to put in place a solid, core implementation team that is
composed of the organization’s ‘best and brightest’ individuals. These individuals should have a
proven reputation and there should be a commitment to ‘release’ these individuals to the project on a
full-time basis
Communication plan – planned communication among various functions and organizational levels
(specifically between business and IT personnel) is important to ensure that open communication
occurs within the entire organization, as well as with suppliers and customers.
Project cost planning and management – it is important to know up front exactly what the
implementation costs will be and dedicate the necessary budget.
IT infrastructure – it is critical to assess the IT readiness of the organization, including the architecture
and skills. If necessary, infrastructure might need to be upgraded or revamped.
Selection of ERP – the selection of an appropriate ERP package that matches the businesses
processes.
Consultant selection and relationship – some authorities advocate the need to include an ERP
consultant as part of the implementation team.
Training and job redesign – training is a critical aspect of an implementation. It is also necessary to
consider the impact of the change on the nature of work and the specific job descriptions.
Troubleshooting/crises management – it is important to be flexible in ERP implementations and to
learn from unforeseen circumstances, as well as be prepared to handle unexpected crises situations.
The need for troubleshooting skills will be an ongoing requirement of the implementation process.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
The benefits of ERP
 Because software communicates across all functions, there
is absolute visibility of what is happening in all parts of the
business.
The discipline of forcing business-process-based changes is
an effective mechanism for making all parts of the business
more efficient.
There is a better ‘sense of control’ of operations that will
form the basis for continuous improvement (albeit within the
confines of the common process structures).
It enables far more sophisticated communication with
customers, suppliers, and other business partners.
It is capable of integrating whole supply chains including
suppliers’ suppliers and customers’ customers.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
The process of MRP1
Explode the master production schedule.
Identify what parts and assemblies are required.
Check whether the required parts and assemblies are available.
For every part or assembly that is required, but not available, identify
when work needs to be started for it to be made available by its due
date
Generate the appropriate works and purchase orders.
Repeat the process for the next level of the bill of materials.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Product structure for a simple board game
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure S14.1
Materials requirements planning (MRP) schematic
Customer
orders
Master
production
schedule
Forecast
demand
Bill of materials
Material
requirements
planning
Inventory
records
Materials plans
Works orders
Purchase
orders
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Master production schedule (MPS)
Known
orders
Forecast
demand
Sister plant
demand
R&D
demand
Master
production
schedule
Promotion
requirements,
etc.
Key
capacity
constraints
Inventory
levels
Spares
demand
Safety stock
requirements
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Table S14.1
Example of an MPS
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Table S14.2
Example of a ‘level’ MPS
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Table S14.3
Example of a level MPS including ATP
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Closed-loop MRP
Materials plans
We wish to make
300 units per
month
Production
plan
We wish to make
7 units for day 35
Master
production
schedule
Therefore we will
need to make 5
box assemblies
for week 35
Materials
plan
Capacity plans
realistic?
Resource
requirement
plan
realistic?
Rough-cut
capacity
plan
Can we make 7
units for day 35?
realistic?
Capacity
requirements
plan
Can we make 5
box assemblies
for week 35?
Can we make
300 units per
month?
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Operations Management
8th edition
Chapter 15
Lean Operations
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 15.1
This chapter examines lean operations
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Key questions
In Chapter 15 – Lean operations – Slack et al. identify the
following key questions…
 What is lean?
 How does lean eliminate waste?
 How does lean apply throughout the supply network?
 How does lean compare with other approaches?
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Lean
‘The key principle of lean is relatively
straightforward to understand; it means moving
towards the elimination of all waste in order to
develop an operation that is faster, more
dependable, produces higher quality products
and services and, above all, operates at low
cost’.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Lean operations
Synonyms
Continuous flow manufacture
High value-added manufacture
Stockless production
Low-inventory production
Fast-throughput manufacturing
Lean manufacturing
Toyota production system
Short cycle time manufacturing
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Lean synchronization
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Figure 15.3
The four elements of lean
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The ‘river and rocks’ analogy
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Lean synchronization (1 of 2)
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Lean synchronization (2 of 2)
The lean philosophy of operations
Eliminate waste
Involve everyone
Continuous
improvement
Lean as a set of techniques for
managing operations
Lean as a method of
planning and control
Basic working practices
TPM
Design for manufacture
Set-up reduction
Operations focus
Total people involvement
Small, simple machines
Visibility
Flow layout
JIT supply
Pull scheduling
Kanban control
Levelled scheduling
Mixed modelling
Synchronization
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Muda, mura, muri
Muda, mura, and muri are Japanese terms conveying three causes of
waste.
 Muda – are activities in a process that are wasteful because they
do not add value to the operation or the customer.
 Mura – means ‘lack of consistency’ or unevenness that results in
periodic overloading of staff or equipment.
 Muri – means absurd or unreasonable. It is based on the idea that
unnecessary or unreasonable requirements put on a process will
result in poor outcomes.
These three causes of waste are related. Inconsistent processes (mura)
lead to overburdening resources (muri) which causes non-value-adding
activities (muda).
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Seven types of waste
Waste activities consume time, resources and space, but
do not contribute to satisfying customer needs.
 Over-production
 Waiting time
 Transport
 Process inefficiencies
 Inventory
 Wasted motion
 Defectives
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Waste (1 of 4)
Over-production
Make more than is required by the customer, or to make it earlier
than required.
• Taking multiple copies of the document which are not required.
Waiting time
Any delay between when one process step/activity ends and the next
step/activity begins.
• Waiting for a manager to approve an application.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Waste (2 of 4)
Transport
Movement of work between departments or offices that does not
add to the value of the product or service.
• Multiple approvals across different departments.
(Over) Processing
Adding more value to a service or product than customers want or
will pay for.
• Capturing extra information from the customer which is not used.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Waste (3 of 4)
Inventory
More materials or information on hand than is currently required.
• 100 applications waiting together for data entry.
Motion
Needless movement of people.
While ‘transportation’ refers to the movement of work, ‘motion’
involves movement of workers.
• Running to a printer on a different floor for a printout.
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Waste (4 of 4)
Defects/Inspection
Any aspect of the service that does not conform to customer needs.
• Incorrect customer details captured in the system.
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Some daily examples…
Activity
Waste Category

Making extra copies just in case

Over-production

Document movement between departments

Transport

Supervisory approval delays

Waiting

Files waiting to be worked on

Inventory

Multiple calls to the customer for same issue

Over-production

Incorrect customer address

Defect

Cupboard full of office supplies

Inventory

Capturing additional fields in the system

Over-processing

Running for photocopier to other floor on building

Motion

Incorrect processing of salary

Defect

Customer on hold

Waiting

Forms moving different locations

Transport
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Lean operations – The 5Ss
 Sort (seiri) – Eliminate what is not needed and keep what is
needed.
 Straighten (seiton) – Position things in such a way that they
can be easily reached whenever they are needed.
 Shine (seiso) – Keep things clean and tidy; no refuse or dirt
in the work area.
 Standardize (seiketsu) – Maintain cleanliness and order –
perpetual neatness.
 Sustain (shitsuke) – Develop a commitment and pride in
keeping to standards.
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Sort (seri)


Eliminate all unnecessary items!!
Unnecessary refers to those things that are not needed for
current work.
Keep only things that are required in doing the
job.
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Straiten (seiton)


Arrange items so that they can be found quickly by anybody,
anywhere, anytime. Items should be easy to find, easy to use and
easy to put away.
Tools
̶ Colour coding , signboards, labelling.
Keep things in order.
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Shine (seiso)

Everything is clean, neat, tidy and ready to use.

Tools:
̶ Five-minute shine.
̶ Cleaning and inspection checklists.
̶ Checklist of activities needing maintenance.
e.g. the ‘5-second stapler’ test!
A clean work place enhances health and productivity.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Standardize (seiketsu)


To prevent setbacks in the first three pillars (sort, set in order and
shine).
Tools
̶ Best practice documentation and sharing.
̶ SOPs documented and posted.
̶ Checklists and job cycle charts.
Disorganized folders on the shared drive
Standardization of folders
Learn a smarter way to work.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Sustain (shitsuke)

To make 5S a habit in the way we do our day-to-day activities.

Tools include…
̶ 5S contests.
̶ Visual management boards showing 5S audit.
̶ Slogans.
̶ Handbooks.
̶ Poka Yoke!
Make 5 S a habit
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
‘Value stream’ mapping
‘Value stream’ mapping focuses on value-adding activities and
distinguishes between value-adding and non-value-adding activities. It is
similar to process mapping but different in four ways:
 It uses a broader range of information than most process maps.
 It is usually at a higher level (5–10 activities) than most process maps.
 It often has a wider scope, frequently spanning the whole supply
chain.
 It can be used to identify where to focus future improvement activities.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Waste is a large part of most processes
Mapping the value stream – Example
High-level process steps for a loan application process
High-level process steps
Acquire
the customer
Prepare
application
Process
application
Advise
customer
Disburse
funds
Step-by-step activity analysis for value-add to our customer
Activities which add value to the customer: e.g. the credit decision
Activities which don’t add value to the customer but are required by regulation: e.g. KYC
Activities which neither add value nor are required by regulation: e.g. carrying files from one desk to another
Actual value-add activity may only be 1–10 per cent of the total process
time
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Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
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Small machines (1 of 2)
Conventional western approach is to purchase large
machines to get ‘economies of scale’.
These often have long, complex set-ups, and make big
batches quickly creating ‘ waste’.
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Small machines (2 of 2)
Using several small machines rather than one large one
allows simultaneous processing, is more robust and is more
flexible…
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Figure 15.10
Delivering smaller quantities more often can reduce
inventory levels
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Lean flow principles (1 of 2)
A process consists of three steps – A , B and C.
It takes one minute to finish each step of the process (A, B and C).
Batch flo …
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