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UT / Business / BAS 341 / What replaces ford as the world’s largest automobile manufacturer?

What replaces ford as the world’s largest automobile manufacturer?

What replaces ford as the world’s largest automobile manufacturer?

Description

School: University of Tennessee - Knoxville
Department: Business
Course: CBM II: Lean Operations
Professor: Bogdan bichescu
Term: Summer 2015
Tags:
Cost: 50
Name: Lean Operations Midterm Exam #2
Description: These notes cover Midterm Exam #2
Uploaded: 10/07/2017
8 Pages 51 Views 4 Unlocks
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Lean Operations


What replaces ford as the world’s largest automobile manufacturer?



Midterm 2: Study Guide

9-18

I. Facts:

a. In 1955 Japan produced less than 70,000 vehicles, U.S. made  9.2 million that year

b. In 1980 Japan’s production exceeded 11 million, while U.S.  achieved just over 8 million

c. The Toyota production system (TPS) was inspired by Henry  Ford’s assembly line

d. Henry Ford’s system created flow from ore to final product: i. One company

ii. One location  

iii. One product

iv. Long life cycles

v. Unlimited demand  

1. Drawback- product variety

e. In the 1900’s General Motors replaced Ford as the world’s  largest automobile manufacturer by giving the customer a  choice:


Who is taiichi ohno?



i. Different product lines- Chevrolet, Pontiac, Oldsmobile,  Buick and Cadillac

ii. Different colors, body styles, and options

iii. Yearly model changes

f. The Cost Variety…

i. General Motors differed from Ford in terms of:

1. Scheduling  

2. Factory layout

3. Organization

4. Accounting

g. Batch production sacrifices flow for example: an aluminum  cold can from ore to customer

i. Passes through 8 firms, 14 storage points

ii. Is picked up and put down 30 times

iii. 24% of raw material is scrapped somewhere along the  way

iv. Requires 319 days to do 3 hours of work

h. Taiichi Ohno, the father of TPS and lean production principles,  combined Ford’s assembly line idea and supermarket  


What are the elements of lean production?



Don't forget about the age old question of What do adolph and thelen’s studies tell us?

operations.

i. The goal is to eliminate waste (muda) and to produce only  what is needed on any given day, rather than in anticipation  of demand

i. Produce the right part, in the right place, at the right  time (JIT)

9-20

I. What us lean production:

a. A set of integrated activities designed to

i. Achieve high-volume production, while minimizing  

waste in the production process

1. Reduce inventory of raw materials, WIP and  

finished products (over production)

2. Reduce defects and rework due to poor quality

3. Reduce waiting due to resource or part  

unavailability  

4. Reduce unnecessary transportation and motion

5. Reduce over processing- work that does not add  

value

b. Elements of Lean Production:

i. How much WIP should we have?

ii. Inventory (WIP) hides problems

iii. Lower levels of (WIP) expose problems

c. Emphasize JIT production:

i. Employ a pull production system  

1. How are WIP and Throughput time in a Pull system

compared to a Push system? We also discuss several other topics like What is the main function of a special interest group?
We also discuss several other topics like How is the bilaminar embryonic disc formed?

ii. Use one-piece flow

1. Move products one unit at a time, if possible,  

between workstations to improve throughput

2. Requires constant effort to reduce setup times

d. Process Performance Metrics:

i. Throughput time (THt) or Turn Around time (TAT)  

1. Total time required to complete one unit of a  

product or service

e. Little’s Law

i. WIP=THt * THr, where:

1. WIP- represents amount of work in process

2. Tht- is the throughput time (time in system)

3. THr- is the throughput rate

a. Defines the output rate that a process is  

expected to produce over a period of time  

(units/time)

b. Represents a measure of process capacity

f. One-piece Flow

i. Case 1- assume that parts are transferred 60 units at a  time, what is the average THt?

ii. Case 2- assume that parts are transferred 1 unit at a  time, what is the average THt?

II. Use Kanban production control systems

a. One Kanban is received; the machine center produces a unit  to replace the one pulled by the assembly line people

b. Determining the number of Kanban cards (containers)  needed:

i. Each contained represents the minimum production lot  size We also discuss several other topics like What is the average number of comparisons for a successful search assuming all entries are searched with equal probability?

ii. The number of such containers determines directly the  amount of WIP in system

iii. K= (expected demand during lead time + safety  

stock)/size of the container=(DL+S)/C

1. D= average demand per period

2. L= lead time to replenish an order

3. S= safety stock expressed in days of demand

4. C= Container size

9-25

I. Elements of Lean Production

a. Use of Kanban Production control systems

b. Determining the number of Kanban cards (containers)  needed:

i. Each container represents the minimum production  

lot size

ii. The number of such container determines directly  

the amount of WIP in system

iii. K=(expected demand during lead time + safety  

stock)/ size of the container = (DL +S)/ C

1. D= average demand per period If you want to learn more check out What does an ethics of care include?

2. L= Lead time to replenish an order

3. S= Safety stock We also discuss several other topics like What is scm (supply chain management)?

4. C= Container size

c. Lead time is determined by the supplier

d. Container size is determined by customer

e. Demand and Safety stock is also determined by the  customer

II. Level Scheduling (Heijunka)

a. Goal: achieve a smooth, stable production flow

b. Idea: process small, frequent batches rather than few large batches, aka mixed-model (Jelly bean) schedule

c. JIT level material-use approach vs. large-lot approach III. JIT layout- Group technology

a. Group similar products into families

b. Group processes into work cells

IV. Other elements of Lean Production

a. Quality at the source-andom cord

b. Upgrade housekeeping (5s)

i. Seiri (sorting)

ii. Seiton (Simplify)

iii. Seiso (Shine/sweep)

iv. Seiketsu (Standardize)

v. Shitsuke (Sustain/self-discipline)

c. Respect for people

9-27

I. Managing Quality

a. How do we define and measure quality?

i. In manufacturing?

ii. In services?

iii. The totality of features and characteristics of a  

product or service that bears on it ability to satisfy  

stated or implied needs

1. American Society for Quality (ASQ)

b. How important is Quality?

i. Should it matter as a function of strategic focus 

differentiation, response, and cost?  

1. Why? Or why not?

2. Ex: Buying a flashlight at Wal-Mart and it stops  

working

ii. Consumers will not continue to be repeat customers  unless those products/ services satisfy certain quality

standards

iii. There is absolutely no reason for having errors or  defects in any product or service, as quality is free

1. According to Philip Crosby

2. Cost of poor quality is typically underestimated

3. A focus on quality is requited regardless of  

strategy

c. How costly is Quality?

i. The cost of quality (COQ)

1. Prevention costs

a. Training, quality improvement programs

2. Appraisal costs

a. Cost of testing, inspectors, testing labs

3. Internal failure costs

a. Rework, scrap, downtime

4. External failure costs

a. Product returns, warranty, liabilities, loss  

of goodwill

II. Total Quality Management (TQM)

a. Refers to a consistent and comprehensive focus on quality  that encompasses the entire organization  

b. Quality is defined by identifying and meeting customer  expectations

c. Management is directly responsible for quality  improvement

d. Requires a continuous effort to analyze and improve  organizational processes

e. Elements of TQM:

i. Continuous improvement

1. Never-ending process of continual  

improvement  

2.  the goal is zero defects

3. Covers people, equipment, materials,  

procedures

4. Based on Shewhart/ Deming PDCA model  

ii. Six Sigma

1. Organization developed by Motorola, adopted  and enhanced by Honeywell and GE

2. A comprehensive program focused on total  

customer satisfaction, including:

a. Strong discipline- DMAIC mode: define 

measure  analyze  improve  control  

b. Set of tools: statistical process control  

(SPC), Pareto charts and histograms,  

flow-charts, cause and effect diagrams,  

etc.

iii. The DMAIC model

1. Define- Projects purpose, scope, and outputs  subject to the customer’s definition of quality

2. Measure- The target process and collect data 3. Analyze- The data ensuring repeatability and  productivity

4. Improve- By modifying or redesigning existing  processes and procedures

5. Control- The new process to make sure  

performance levels are maintained

a. Some additional empowerment- 85% of  

quality issues are due to either processes

or materials

i. Quality circles

b. Internal and external bench marketing

i. What are the benefits?

c. JIT, quality at the source and effective  

inspection

iv. Key TQM tools:

1. Check sheet

2. Scatter diagram

3. Cause and effect diagram

4. Pareto chart

5. Statistical process control

v. Check Sheet- an organized method of recording data vi. Scatter diagram- a graph of the value of one variable vs. another variable

vii. Cause and effect diagram- Ishikawa or fishbone

viii. Pareto chart- identifies and plots problems in  

descending order of frequency

f. Statistical Process Control (SPC)

i. Use statistics and control charts to learn  

systematically about process output

ii. Since variability is inherent in every process, seeks to identify and differentiate between common cause  

and special cause process variation  when to take  

corrective action or not

iii. Systematic process improvement through elimination of special cause and gradual reduction of common  

causes

iv. Constructed from historical data, the purpose of  

control charts is to help distinguish between common

cause and special cause variation  

10-2

I. Other elements of Lean Production

a. Respect for people

i. Cross functional teams

b. Preventative maintenance

i. Periodic inspection and repair

c. Standard work

i. Use clear, standardized consistent task specs

d. Value-chain mapping

i. Map processes and identify value- added and  

nonvalue- added activities

e. Continuous improvement (Kaizen)

II. Key TQM tools:

a. Statistical Process Control (SPC)  

i. Uses statistics and control charts to learn  

systematically (rather than haphazardly) about  

process output

ii. Since variability is inherent in every process, seeks to identify ad differentiate between common-cause  

(random) and special-cause (non-random assignable)

process variation  when to take corrective action or  

not

iii. System process improvement through elimination of  special causes and gradual reduction of common  

causes

b. Key TQM ingredients

i. SPC- Control charts

1. Constructed from historical data, the purpose  

of control charts is to help distinguish between  

common-cause and special-cause variation

Clicker Question: Common-cause variation: 

- Random sources

10-4

I. Statistical Process Control:

a. Recall the SPC employs control charts, with the purpose of  distinguishing between common-cause and special-cause  variation

i. Upper control limit

ii. Target value

iii. Lower control limit

b. Control charts

i. A variety of charts can be constructed, depending on  the metric that is measured  

1. Continuous variables (length, weight,  

thickness, etc.) X-bar and R charts

2. Attribute variables (defective, non-defective)

a. C charts- if dealing with counts of defects

b. P charts- if interested in the proportion of

defects

c. U charts- if interested in the number of  

defects per unit of output

3. Multivariate charts- if interested in tracking  

multiple dimensions simultaneously  

c. X-bar and R charts

i. X-bar charts- track changes in the central tendency  (the mean) of a process

ii. R charts- track changes in process variability

d. Setting limits for X-bar (mean) charts

i. When we do not know σ the population variation

1. Lower control limit: LCL x = X – A2 R

2. Upper control limit: UCL x = X – A2 R

ii. Setting limits for the R (variation) chart- regardless of whether σ is known or not

1. Lower control limit: LCLr = D3 R

2. Upper control limit: UCLr = D4R, where  

a. R= 1/n

iii. Sample size is how many (n)

iv. Ex: assume that 5 (n=5) cereal boxes are randomly  selected every 30 minutes

1. Compute the upper and lower control limits for  

the x-bar chart, assuming that σ is known

2. Steps:

a. First, compute the average for each f the  

15 samples (x-bar)

b. Then, compute the average across all the

samples (X double bar)

c. Next, R bar is .2204

d. Putting everything together

i. UCL= X + A2 R= 10.728 + .577  

(.2204) = 10.856

ii. LCL= X – A2R= 10.728 - .577  

(.2204) = 10.601

iii. UCL= D4R= (2.11) (.2204) = .

46504

iv. LCL = D3R= (0) (.2204)= 0  

e. Using X-bar and R charts

i. Sampling mean is shifting upward, but range is  

consistent

ii. X chart detects shifts in central tendency

iii. R chart does nit detect change in mean  

Clicker Question: TQM tool? 

- Ishikawa diagram  

Clicker Question: Variability in the weight of cereal boxes is  tracked with? 

- R charts

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