Assignment of Operation Managenent Naeem

8/3/2019 Assignment of Operation Managenent Naeem

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ASSIGNMENT OFOPERATIONS MANAGEMENT

Student Name: NAEEM ULLAH KHAN

Student Id: M1003126

Student Status: MBA 2nd

semester LSBF Manchester Campus

University Of Wales

Module Title: OPERATIONS MANAGEMENT

London School of Business & Finance



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TABLE OF CONTENT

S.NO TOPICS Pg. No

1 Introduction to Porters Value Chain 3

2 Lean Production

y Def inition

4

3 Seven Principles of Toyota Production System 5

4 Corporate Culture 6

5 The Five Ss 7

6 The Focus Of Toyota production System 8

7 Toyota And Waste Elimination 9

8 Recommendation

Kaizen Concept

11-12

9 References 13



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Porter¶ Value Chain:

The Porter¶s value chain or value chain

analysis, is a principle from business

management that was first time put forward

by Michael Porter in 1985 in his book,

Competitive Advantage: Creating and

Sustaining Superior Performance.

A value chain includes a chain of

activities. In operation process Productspass through all these activities of the

chain in order and at each activity the

product gains some value. The chain of

activities gives the products more added

value than the sum of added values of all

activities.

The concept of the value chain should not

be mixed with the costs occurring

throughout the activities. As an example of

the difference, a diamond cutter can be

used. The cutting activity may have a low

cost, but the activities adds too much ofthe value to the end product, since a rough

diamond is significantly less valuable than

a cut diamond.



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The value chain arrange the generic value-

adding activities of an organization in an

ordre. The ³primary activities´ include:

inbound logistics, operations (production),

outbound logistics, marketing and sales

(demand), and services (maintenance). The

³support activities´ include:

administrative infrastructure management,

human resource management, information

technology, and procurement. The costs andvalue drivers are identified for each value

activity.

The value-chain concept is not for an

individual organization, it exceed and

cross the limits of an individual

organization. It can apply to whole supply

chains and distribution networks. The

delivery of products and services mix to

the end customer will mobilize different

economic factors, each managing its own

value chain. Porter terms this larger

interconnected system of value chains the³value system.´ A value system includes the

value chains of a firm¶s supplier (and

their suppliers all the way back), the firm

itself, the firm distribution channels, and



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the firm¶s buyers (and presumably extended

to the buyers of their products, and so

on).

Lean production:

Engineer Taiichi Ohno developed a concept

originally for manufacturing of

automobiles in Toyota Company after World

War II. It is also known as the Toyota

Production System or just-in-timeproduction. His concept was mainly based

on eliminating waste and empowering

workers, reduced inventory and improved

productivity.

Definition:

Lean production is an assembly-line

methodology which is about doing more with

less: less time, inventory, space, labour,

and money. "Lean manufacturing", shorthand

for a commitment to eliminating waste,

simplifying procedures and speeding up

production.

Lean Manufacturing (also known

as the Toyota Production System)

is the systematic elimination of waste ±



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overproduction, waiting, transportation,

inventory, motion, and over-processing,

defective units ± and the implementation of

the concepts of continuous flow and

customer pull.

Instead of maintaining resources in

anticipation for future manufacturing, the

management of Toyota built a good

relationship with suppliers. By use of

multi-skilled employees, Toyota was able toflatten their management structure and

focus resources in a flexible manner.

Because the company was able make changes

quickly, they were often able to respond

faster to market demands than their

competitors could.

Seven Principles of ToyotaProduction System:

1. R educed Setup Times:All practices held in Toyota are

wasteful because they add no value and

they tie up labour and equipment. By

organizing procedures, Toyota managed

to slash setup times from months to

hours and sometimes even minutes.

2. Small-Lot Production:



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Producing things in large amount

results in huge setup costs, larger

inventories, extended lead times,

and larger defect costs. Because Toyota

has make setups short and inexpensive,

it became possible for them to

economically produce a variety of

things in small quantities.

3. E mployee involvement and empowerment:Toyota organized their workers by

forming teams and gave them theresponsibility and training to do many

specialized tasks. Teams are also given

responsibility for housekeeping and

minor equipment repair. Each team has a

leader who also works as one of them on

the line.

4. Quality at the source:

To eliminate product defects, they must

be discovered and corrected as soon as

possible. Since workers are at the best

position to discover a defect and to

immediately fix it, they are assigned

this responsibility. If a defect cannotbe readily fixed, any worker can halt

the entire line by pulling a cord

(called Jidoka).

5. Eq uipment maintenance:



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Toyota operators are assigned primary

responsibility for basic maintenance

since they are in the best position to

defect signs of bad operation.

Maintenance specialists diagnose and fix

only complex problems, improve the

performance of equipment, and train

workers in maintenance.

6. Pull Production:

To reduce inventory holding costs and

lead times, Toyota developed the pull

production method wherein the quantity

of work performed at each stage of the

process is dictated solely by demand formaterials from the immediate next stage.

This is where the term Just-in-Time

(JIT) originated.

7. Supplier Involvement:

Toyota treats its

suppliers as partners, as integral

elements of Toyota Production System

(TPS). Suppliers are trained in ways to

reduce setup times, inventories;



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defects, machine breakdowns etc., and

take responsibility to deliver their

best possible parts.

Corporate Culture:

The fundamental reason for Toyota's

success in the global marketplace lies in

its corporate philosophy ± the set of

rules and attitudes that govern the use of

its resources. Toyota have successfullypenetrated global markets and established

a world-wide presence by increase its

productivity. The company's rule to both

product development and distribution is

very consumer-friendly and market-driven.

Toyota's philosophy of empowering itsworkers is the centerpiece of a human

resources management system that fosters

creativity, continuous improvement, and

innovation by encouraging employee

participation and that likewise engenders

high levels of employee loyalty. Knowing

that a workplace with high morale and job

satisfaction is more likely to produce

reliable, high-quality products at

affordable prices, Toyota have



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institutionalized many successful

workforce practices. Toyota has done so

not only in its own plants but also in

supplier plants that was experiencing

problems.1

Although many car manufacturers have

earned a reputation for building high-

quality cars, they have been unable to

overcome Toyota's advantages in human

resource management, supplier networks anddistribution systems in the highly

competitive car market. Much of Toyota's

success in the world markets is attributed

directly to the synergistic performance of

its policies in human resources management

and supply-chain networks.

The Five Ss:

The Five Ss includes the five dimensions

of workplace optimization: Seiri (Sort),

Seiton (Set in order), Seiso (Shine),

Seiketsu (Standardize), and Shitsuke

(Sustain).Like many concepts of keizen and lean

manufacturing, the 5S can be interpreted

narrowly or broadly, depending on

circumstances of their use.



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The 5S Program defines the steps that are

used to make all work spaces efficient and

productive, help people share work

stations, reduce time looking for needed

tools and improve the work environment.

Phases of Ss:

There are 5 primary phases of 5S: sorting,

straightening, systematic cleaning,

standardizing, and sustaining.

Additionally, there is an additional

phase, safety, which is sometimes

included.

Sorting (Seiri): Eliminate all unnecessary

tools, parts, instructions. Go through all

tools, materials, etc., in the plant and

work area. Keep only essential items.

Everything else is stored or discarded.

Straightening or Setting in Order(Seiton): There should be a place for

everything and everything should be in its

place. The place for each item should be

clearly labelled or demarcated. Items

should be arranged in a manner that

promotes efficient work flow. Workers

should not have to repetitively bend to

access materials. Seiton is one of thefeatures that distinguish 5S from

"standardized cleanup".



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Shining or Sweeping or Cleanliness /Systematic Cleaning (Seiso): Keep the

workplace tidy and organized. At the end

of each shift, clean the work area and be

sure everything is restored to its place.

A key point is that maintaining

cleanliness should be part of the daily

work ± not an occasional activity

initiated when things get too messy.

Standardizing (Seiketsu): Work practices

should be consistent and standardized.

Everyone should know exactly what his or

her responsibilities are for related to

the first 3 S's.

Sustaining the discipline (Shitsuke): Maintain and review standards. Once the

previous 4 S's have been established, theybecome the new way to operate. Maintain

focus on this new way and do not allow a

gradual decline back to the old ways. When

an issue arises such as a suggested

improvement,, a new way of working, a new

tool or a new output requirement, review

the first 4 S's and make changes asappropriate.

The Focus of Toyota Production System:



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Real TPS is not just about ³flow´ or

³pull production. TPS in Toyota is

primarily concerned with making a profit,

and satisfying the customer with the

highest possible quality at the lowest

cost in the shortest lead-time, while

developing the talents and skills of its

workforce through improvement routines and

problem solving disciplines. This stated

aim is mixed in with the twin productionprinciples of Just in Time (make and

deliver the right part, in the right

amount, at the right time), and Jidoka

(build in quality at the process), as well

as the notion of continuous improvement by

standardization and elimination of waste

in all operations to improve quality,

cost, productivity, lead-time, safety,

morale and other metrics as needed.

2. Discuss and recommend how wasteis/can be managed along your chosen

organisations Value chain?

Toyota and Waste Elimination:



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Wastes (muda) are the activities and

results to be eliminated.

While the elimination of waste may seem

like a clear subject in such environmentalconcepts as cleaner production, it is

noticeable that waste is often very

conservatively identified.

In Lean Manufacturing, waste is any

activity that consumes time, resources, or

space but does not add any value to the

product or service. Lean manufacturing is,

in its most basic form, the systematic

elimination of 7 wastes ± overproduction,

waiting, transportation, inventory,

motion, over-processing, defective units ±

and the implementation of the concepts of

continuous flow and customer pull.

The waste is key to establishingdistinctions between value-adding

activity, waste and non-value-adding work.

Non-value adding work is waste that must

be done under the present work conditions.

One key is to measure, or estimate, the

size of these wastes, to demonstrate the

effect of the changes achieved andtherefore the movement toward the goal.

The "flow" (or smoothness) based approach

aims to achieve Just-In-Time (JIT), by

removing the variation caused by work



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scheduling and thereby provide a driver,

rationale or target and priorities for

implementation, using a variety of

techniques.

The three broad types of waste:

The elimination of waste is the goal of

Lean. Toyota defined three broad types of

waste: mur i, mura and muda.

Mur i is all the unreasonable work that

management imposes on workers and machines

because of poor organization, such as

carrying heavy weights, moving things

around, dangerous tasks, even working

significantly faster than usual. It is

pushing a person or a machine beyond itsnatural limits. This may simply be asking

a greater level of performance from a

process than it can handle without taking

shortcuts and informally modifying

decision criteria. Muri also includes bad

working conditions, and it will often push

a resource to work harder than its natural

limits. Unreasonable work is almost

always a cause of multiple variations.



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Mura is the variation and inconsistency in

quality and volume in both products and

human conditions.

Muda is the Japanese word for waste. It

specifies it specifies any human activity,

which absorbs resources, but does not

directly add customer value. These non-

value-adding activities and results ±

overproduction, waiting, transportation,

inventory, motion, over-processing,

defective units ± are to be eliminated.

3. Evaluate the impact that yourrecommendation will have on yourorganisation¶s resources,

And justify how your recommendation will ensure increased competitiveness,long term Sustainability and corporate social

responsibility?



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Ans: R ecommendation and Toyota

Production System

1. Begin action in the technical

system and then follow quickly with

cultural change.

2. Learn by doing first and training

second.

3. Start with value to demonstrate

lean as a system and provide a "go see

model".4. Use value stream mapping to develop

future state visions and help "learn to

see".

5. Use Kaizen workshops to teach and

make rapid changes.

6. Organize over value streams.

7. Make it mandatory.

8. A crisis may prompt a lean

movement, but may not be necessary to

turn the company around.

9. Be opportunistic in identifying

opportunities for big financial

impacts.

10. Realign metrics with value streams

perspective.

11. Build on your company's roots to

develop your own way.



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12. Hire or develop lean leaders and

develop a succession system.

13. Use experts for teaching and

getting quick results.

Kaizen Concept:

y Everything can and should be improved.y Not a single day should go by withoutsome kind of improvement being made

somewhere in the company.

y Don't just criticize, suggest animprovement.

y Think beyond common sense. Challengeassumptions. Even if something is

working, try to find the ways to make

it work even better. Ask searchingquestions.

y Customer-driven strategy forimprovement ± any management activity

should eventually lead to increased

customer satisfaction.

y Imagine the ideal customer experienceand strive to provide it.

y Quality first, not profit first ± anenterprise can prosper only if

customers who purchase its products or

services are satisfied.



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y Recognize that any corporation hasproblems and establish a corporate

culture where everyone can freely admit

these problems and suggest improvement.

y Think of how to improve it instead ofwhy it can't be improved.

y See problem solving as cross-functionalcollaborative and systemic approach.

y Emphasis on process ± establish a wayof thinking oriented at improving

processes, and a management system thatsupports and acknowledges people's

process-oriented efforts for

improvement.



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R eferences

y Barnett H, Operations management,

Macmillan,London, 1996

y Constable C. and New C., OperationsManagement - a Systems Approach, Wiley,

1976

y Currie, Work Study,y Naylor J, Operations Management,Pitman, 1996

y Rose M, Industrial Behaviour, Penguin,1978

y Hill T, Production/OperationsManagement, Prentice Hall, 1991

y Shingo S, Non-stock Production - theShingo System for Continous

Improvement, Productivity Press, 1988

y Slack, Chambers, Harland, Harrison,

Johnson, Operations Management, Pitman,1995.

y Ohno, Taiichi (February 1988). Toyota

Production System: Beyond Large-Scale

Production .

y Waldner, Jean-Baptiste (September1992). P r inciples of Com puter-

I nteg r ated Manufactur ing . John Wiley &Sons.

y Louis, Raymond (2006) Custom Kanban:

Designing the System to meet the Needs

of Your Environment.



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y http://www.google.co.uk/search?hl=en&source=hp&q=1000ventures&rlz=1R2TSEA_en-GB&aq=1&aqi=g10&aql=&oq=1000v&gs_rfai=

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Assignment of Operation Managenent Naeem