A typical Value Stream Mapping (VSM) tool classifies the various industrial processes into value adding and non-value adding with a goal to identify and eliminate the non-value added (waste) activities. Based on the concept of Value-Stream Methodology, Energy Value-Stream mapping (EVSM) is being developed where energy components along with cost are added to evaluate with respect to time. Energy Value-Stream mapping (EVSM) identifies the level of energy utilization and wastage in each step and hence determines the opportunities for energy conservations. Implementing this tool by incorporating electrical energy and fuel consumption provides with an ability to view the impact that process improvements have on reducing energy consumption and vice versa. Additionally, it can also deliver tangible and sustained results when used as a part of company’s improvement strategy and a structured analysis with a balanced set of data can reveal areas of energy improvements and optimization. In order to generate Continue reading
Operations Management Concepts
Concept of Agile Manufacturing
The Agile Manufacturing was presented in the first time at the publication in the USA of a report entitled 21st Century Manufacturing Enterprise Strategy. So, it has been introduced as a method of increasing competitive advantage in response to increasingly competitive global markets. Agile concept focuses on the fast response to changeable of customer demand. The key component in agile manufacturing is flexibility. The agile manufacturing methods can be adjusted and consolidated into companies of any size to ensure the growth and success. The changeable of customer and technological requirements that make the manufacturers develop agile supply chain capabilities in order to be competitive. So, many companies use the flexibility and agility to respond the customers’ requirement and markets demand in real time. The new concept of agility manufacturing need to secure competitive advantage from the production process that can be both efficient and responsive. Agility can be defined as Continue reading
Total Quality Management (TQM) Summary
Definition of Total Quality Management (TQM) Total Quality Management (TQM) is defined by International Organization for Standardization (ISO): “TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society.” In Japanese, Total Quality Management (TQM) comprises four process steps, namely: Kaizen — Focuses on Continuous Process Improvement, to make processes visible, repeatable and measurable. Atarimae Hinshitsu — The idea that things will work as they are supposed to (e.g. a pen will write.). KanseiKansei — Examining the way the user applies the product leads to improvement in the product itself. Miryokuteki Hinshitsu — The idea that things should have an aesthetic quality which is different from “atarimae hinshitsu” (e.g. a pen will write in a way that is pleasing to the writer.) Total Continue reading
Safety Stock Analysis in Inventory Management
In real life situations one rarely comes across inventory lead times and usage rates that are known with certainty. When usage rate and/or lead time vary, then the reorder level should naturally be at a level high enough to cater to the production needs during the procurement period and also to provide some measures of safety for at least partially neutralizing the degree of uncertainty. The question will naturally arise as to the magnitude of safety stock. There is no specific answer to this question. However, it depends, inter alia, upon the degree of uncertainty surrounding the usage rate and lead time. It is possible to a certain extent to quantify the values that usage rate and lead time can take along with the corresponding chances of occurrence, known as probabilities. These probabilities can be ascertained based on previous experiences and/or the judgemental ability of astute executives. Based on the Continue reading