Back to basics : your guide to manufacturing excellence

Title:

Personal Author:

Melnyk, Steven A.

Publication Information:

New York : St. Lucie Press, 2000

ISBN:

9781574442793

Subject Term:

Production management

Quality control

Inventory control

Added Author:

Christensen, R. T. "Chris"

Available:*

Library	Item Barcode	Call Number	Material Type	Item Category 1	Status
Searching... PSZ KL	30000005166867	TS155 M45 2000	Open Access Book	Book	Searching... Unknown

As organizations move into the future, the operations environment needs to expand into Collaborative Planning and Forecast Replenishment (CPFR), Vendor Managed Inventory (VMI), and an Enterprise Resource Planning (ERP) operating system to become and remain competitive. These innovative and complex methods require an unprecedented degree of accuracy and knowledge of the basics in operations management. Back to Basics: Your Guide to Manufacturing Excellence details the key concepts necessary to expertly apply new approaches such as ERP, CPFR, VMI, and much more.

Based on the popular "Back to Basics" columns that appear in the magazine APICS: The Performance Advantage, the structure of the book allows for sufficient development of each topic and is short enough to be quickly read. Topics include: capacity, inventory, inventory accuracy, part numbering, processes, problem solving, and general managerial guidelines. Each chapter has everything you need to understand the issues and their implications.
Many careers in operations management begin with production and inventory control. When entering this field, you need to know the basics - in a hurry. Developing excellence takes time and usually comes through the "school of hard knocks". Whether new on the job, or brushing up to implement the latest technology, Back to Basics: Your Guide to Manufacturing Excellence gives you the information you need to become an expert - quickly.

Author Notes

R. T. "Chris" Christensen is the Director of Operations Management programs at the University of Wisconsin-Madison, School of Business, Executive Education.

Chapter 1. Why the Basics?	p. 1
Understanding the Basics	p. 1
Oh, No! Not Another Book on Manufacturing!	p. 2
How Can Things Be So Wrong, When Everything Seems To Be So Right?	p. 2
Why Teach Basics When the Answers Are Out There?	p. 4
Basics Are Hard, But Basics Work!	p. 5
Mapping Manufacturing Excellence: The Case of the MRPII System That Wasn't	p. 7
Overview	p. 7
The Case of the MRPII Implementation That Wasn't	p. 8
Mapping the Basics of Manufacturing Excellence	p. 10
Mapping Manufacturing Excellence: The Four Operations Pillars of Excellence	p. 12
Overview	p. 12
The Four Operations Pillars of Excellence	p. 12
Lead Time: One of the Basic Concepts of Manufacturing	p. 13
Overview	p. 13
Defining the Concept of Lead Time	p. 13
Types of Lead Times	p. 14
Major Lessons Learned	p. 15
Understanding the Components of Manufacturing Lead Time	p. 16
Overview	p. 16
Defining the Concept of Manufacturing Lead Times	p. 16
Factors Affecting Manufacturing Lead Time	p. 17
Importance of Monitoring the Elements of Manufacturing Lead Time	p. 18
Major Lessons Learned	p. 19
Manufacturing Is Really Just a Balancing Act	p. 19
Overview	p. 19
The Balance	p. 20
Major Lessons Learned	p. 23
Chapter 2. Understanding Management: The Basics of Problem-Solving	p. 25
Why Problem-Solving?	p. 25
Understanding the Concept of Manufacturing's Most Fragile Asset: Information	p. 26
Overview	p. 26
Defining Information	p. 26
Critical Traits of Information	p. 27
Major Lessons Learned	p. 28
Managing Information	p. 28
Overview	p. 28
Information Management	p. 29
The Fragile Nature of Information	p. 31
Major Lessons Learned	p. 31
When Is a Problem Not a Problem?	p. 31
Overview	p. 31
Problem vs. Symptom	p. 32
Symptoms	p. 32
Urgency, Structure, and Orientation of Problems	p. 33
Causes	p. 34
Major Lessons Learned	p. 35
Understanding the Problem-Solving Process	p. 35
Step 1 Size-Up/Description	p. 35
Step 2 Problem-Statement/Diagnostics	p. 37
Step 3 Analysis	p. 38
Major Lessons Learned	p. 38
Step 4 Prescription/Alternatives	p. 39
Step 5 Implementation	p. 40
General Observations About the Problem-Solving Process	p. 42
Responding to a Problem: Solve, Resolve, or Dissolve	p. 43
Overview	p. 43
Identifying the Three Forms of a Solution	p. 43
To Go Forward, Sometimes We Have To Go Backwards	p. 45
Overview	p. 45
The Importance of Going Back	p. 45
How To Go Backwards	p. 47
Major Lessons Learned	p. 47
Chapter 3. What Type of Company Are We?	p. 49
Why Should We Care What Type of Company We Are?	p. 49
What Type of Company Are We? The Major Dimensions	p. 50
Overview	p. 50
Manufacturing Settings: Major Dimensions	p. 50
Manufacturing Settings Examined	p. 51
Job Shop	p. 51
Batch	p. 52
Repetitive	p. 52
Process	p. 53
Major Lessons Learned	p. 53
What Type of Company Are We? Understanding the Industrial and Manufacturing Contexts	p. 54
Overview	p. 54
Understanding the Industrial Context	p. 54
Understanding the Impact of the Industrial Context	p. 55
How Does This Information Help with Software Selection?	p. 56
Major Lessons Learned	p. 56
Chapter 4. Understanding the Importance of Metrics	p. 57
Why Metrics?	p. 57
The Importance of Metrics (Part 1)	p. 58
Overview	p. 58
The Total Quality Management Experience at One Company	p. 58
What Are Metrics?	p. 59
Why Metrics?	p. 60
Major Lessons Learned	p. 61
The Importance of Metrics (Part 2)	p. 61
Overview	p. 61
Understanding the Differences Between Metrics	p. 61
Major Lessons Learned	p. 63
The Importance of Metrics (Part 3)	p. 64
Overview	p. 64
Metrics and Corporate Strategy	p. 64
Gaps as Indicators of Strategic Problems	p. 65
Gaps as Indicators of Tactical Problems	p. 66
Major Lessons Learned	p. 67
Chapter 5. Process Thinking: Key to the Basics	p. 69
Process Thinking: Understanding the Importance of Processes	p. 69
Processes: The Basic Building Blocks of the Operations Management System	p. 70
Overview	p. 70
What Is a Process?	p. 71
Strategic Management Process	p. 72
Innovation Process	p. 72
Customer Service Process	p. 72
Resource Management Process	p. 72
Supply-Chain Management Process	p. 73
Logistics Management Process	p. 73
Performance Measurement	p. 73
Other Processes	p. 73
Major Lessons Learned	p. 74
Identifying the Building Blocks of the Process	p. 74
Overview	p. 74
Categorization of Activities within the Process	p. 75
Operation	p. 75
Transportation	p. 76
Inspection	p. 76
Delay	p. 76
Storage	p. 77
Major Lessons Learned	p. 78
Structure of Processes	p. 78
The Ordering of Activities	p. 78
Positioning of Activities	p. 78
Linking of Activities	p. 80
Major Lessons Learned	p. 80
Improving Processes: The First Step	p. 80
Overview	p. 80
Four Types of Processes Found in Every Firm	p. 81
The Process as Formally Documented	p. 81
The Process as People Think It Exists	p. 82
The Process as It Actually Exists	p. 82
The Process as It Should Exist	p. 82
Major Lessons Learned	p. 83
Incorporating Value into Process Analysis	p. 83
Overview	p. 83
Identify the Critical Customer/Product Traits	p. 84
Determine What Constitutes Value for the Critical Customers	p. 85
Identify Metrics Consistent with These Specific Traits of Value	p. 85
Identify the Critical Processes (Including Bounding and Setting Base Conditions)	p. 85
Document (and Validate) the Process as It Currently Exists	p. 85
Assess the Performance of the Current System in Light of the Customer-Based Metrics	p. 85
Modify the Process Appropriately	p. 86
Major Lessons Learned	p. 86
Process Analysis: Closing the Value Gap	p. 87
Overview	p. 87
Disposition Tactics	p. 87
Position Tactics	p. 88
A Caution Regarding Process Change	p. 88
Major Lessons Learned	p. 89
Poka-Yoking Our Activities	p. 90
Overview	p. 90
The Importance of Knowing the Desired Outcomes	p. 91
Major Lessons Learned	p. 92
Chapter 6. Capacity: You Can't Build It if You Don't Have the Capacity	p. 93
Capacity: The Resource at the Heart of Manufacturing Excellence	p. 93
Capacity: Understanding the Basics	p. 93
Major Lessons Learned	p. 96
Measuring Capacity	p. 96
Safety Capacity	p. 97
Making the Transition from Volume to Output	p. 98
Major Lessons Learned	p. 99
Making the Transition from Capacity in Isolation to Capacity within the Processes	p. 100
Overview	p. 100
Capacity in Isolation to Capacity of the System	p. 100
Measuring Capacity at the Activity	p. 101
Calculating Capacity of the Overall Process	p. 102
Major Lessons Learned	p. 102
Production Scheduling Is No Substitute for Capacity Planning	p. 103
Overview	p. 103
Production Scheduling: Defining the Concept	p. 104
The Problem of Production Scheduling: Solving the Wrong Problems and Hiding Others	p. 105
Prerequisites for Effective Production Scheduling	p. 106
Major Lessons Learned	p. 107
Don't Schedule the Shop; Schedule the Bottleneck	p. 107
Overview	p. 107
Bottlenecks: The Key to Simplified, Effective Scheduling	p. 108
Major Lessons Learned	p. 110
Chapter 7. Understanding the Nature of Setups	p. 113
Why Be Concerned with Setup?	p. 113
Understanding the Nature of Setups: The Basics	p. 114
What Is Setup?	p. 114
Internal Activity, External Activity, and Capacity Usage	p. 116
Why Worry About Setups?	p. 116
General Guidelines for Managing Setups	p. 116
Understanding the Nature of Setups: Setups and Lot Sizing	p. 117
Lot Sizing: A Review	p. 117
Setup Costs	p. 118
Setup Costs: An Example	p. 118
Major Lessons Learned	p. 120
Chapter 8. Inventory: The Most Misunderstood Corporate Asset	p. 121
Inventory Accuracy: What's So Important About the Status of Our Inventory, Anyway?	p. 121
Overview	p. 121
Why Inventory Accuracy	p. 121
The Need for Record Accuracy	p. 122
Major Lessons Learned	p. 123
If Inventory Is a Waste, Then Why Study It?	p. 124
The Fallacy of Inventory Management through FIAT	p. 124
Understanding the Nature of Inventory: Functions	p. 125
Overview	p. 125
What Is Inventory?	p. 125
Functions of Inventory	p. 126
Transit	p. 126
Decoupling	p. 127
Lot Sizing	p. 127
Anticipatory	p. 127
Seasonal	p. 127
Buffer	p. 128
Applying the Functions Approach	p. 128
Major Lessons Learned	p. 128
Understanding the Nature of Inventory: Forms and Positions	p. 129
Overview	p. 129
Forms of Inventory	p. 129
Position of the Inventory in the Supply Chain	p. 130
Putting Things Together	p. 130
Major Lessons Learned	p. 130
Understanding the Nature of Inventory: ABC Analysis	p. 131
Part 1 p. 131
Overview	p. 131
Develop Categories of Inventories	p. 131
The Nature of ABC Analysis	p. 132
ABC and Inventory Control	p. 132
ABC and Inventory Reduction	p. 133
Doing ABC Analysis	p. 133
Major Lessons Learned	p. 134
Part 2 p. 135
A Review	p. 135
Doing ABC Analysis: The Answer	p. 135
Introducing Costs	p. 136
Major Lessons Learned	p. 136
Managing the Slow Movers Using ABC Analysis	p. 137
Overview	p. 137
The Problem of the "Slow Movers"	p. 137
Managing the Bottom 5%	p. 138
Strategies for Managing Slow Movers	p. 138
Major Lessons Learned	p. 139
From Inventory Accuracy by Accident to Inventory Accuracy by Design: Key Concepts	p. 140
Overview	p. 140
Defining Inventory Accuracy	p. 142
Major Lessons Learned	p. 144
From Inventory Accuracy by Accident to Inventory Accuracy by Design: Developing the System	p. 144
Overview	p. 144
The Structure for Inventory Accuracy	p. 144
An Effective Cycle-Counting Program: The Key to High Inventory Accuracy	p. 146
Major Lessons Learned	p. 149
Chapter 9. Odds and Ends of Manufacturing Basics	p. 151
Manufacturing Excellence Draws on Multiple Sources	p. 151
Part Numbering: An Introduction	p. 151
Overview	p. 151
Defining the Concept of Part Numbering	p. 153
Assigning Part Numbers: To Be Significant or Not To Be Significant	p. 154
Major Lessons Learned	p. 155
Understanding Part Numbering: Significant Numbering (Yes or No)?	p. 155
Overview	p. 155
Reasons for Using Significant Part Numbers	p. 155
Part Numbering: What To Do	p. 158
Overview	p. 158
Part Numbering vs. Storage and Retrieval of Information	p. 158
Comments from Column Readers	p. 160
Part Numbering: When To Change the Number	p. 160
How To Handle Prototypes	p. 161
How To Handle Design Revisions	p. 162
Part Numbering Revisited	p. 163
Overview	p. 163
Another Look at Part Numbering: One Reader's Perspective	p. 163
Major Lessons Learned	p. 165
Bills of Materials: An Introduction	p. 166
The Problem	p. 166
Defining the Bill of Materials	p. 167
Bills of Materials: Understanding the Uses	p. 168
Overview	p. 168
Uses of the Bill of Materials	p. 168
Product Definition	p. 168
Engineering Change Control	p. 169
Service Part Support	p. 169
Warranty Analysis/Control	p. 170
Planning and Scheduling	p. 170
Costing	p. 171
Shortage Assessment	p. 171
Backflushing	p. 171
Terms and Definitions	p. 171
Revisiting Bills of Material	p. 172
Major Lessons Learned	p. 174
Chapter 10. Getting Things Done, and Done Right, the First Time: The Basics of Implementation	p. 175
Implementing the Savings: The Dumb Way of Achieving Managerial Excellence	p. 175
Overview	p. 175
What Are the Savings?	p. 176
Major Lessons Learned	p. 179
The Power of WIIFM (What's in It for Me?)	p. 179
Overview	p. 179
The Power of WIIFM	p. 180
Major Lessons Learned	p. 181
When a Cost Savings Is a Real Cost Savings	p. 182
Overview	p. 182
You Don't Understand Costs	p. 182
True Cost Savings	p. 183
Opportunity Cost Savings	p. 184
Incremental Cost Savings	p. 184
Myopic Cost Savings	p. 184
Major Lessons Learned	p. 185
Focus, Urgency, and Time Compression: Understanding the Keys to Success in Implementation	p. 185
Introduction	p. 185
The Scenario	p. 186
The Problem	p. 186
Hey, Vendor, There's a Paradigm in my Software!	p. 188
Overview	p. 188
The Manufacturing Software Decision	p. 188
So What?	p. 190
Postscript: Finding a Beginning in the End	p. 191
Index	p. 195

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Summary

Summary

Author Notes

Table of Contents