Session 1

Transformed resources:Materials Information Customers

Transforming resources(act upon the transformed):Facilities Staff
Operations create products and services(service only happens when it is consumed or
used)
Servitization
Session 2

Process mapping(expose the reality of process behaviour)

Visibility Customer experience Emotional mapping

Throughput time:项目进入流程和离开流程之间的时间
Cycle time:正在处理的项目之间的平均时间
Work-in-progress:项目总数

Throughput time=Cycle time x Work-in-progress

Bottlenecks(瓶颈)Cycle time=总流程 Cycle time

First order TPT=各环节 cycle time 之和

Q=1+(total time -TPT)/cycle time

Session 3

Volume

Variety:Taxi VS Bus

Variation:淡季旺季

degree of Visibility

High Cost Low Cost

The design of any process should be governed by the volume and variety

Process types
Project process: flexibility uncertainty
Jobbing process: high variety low volume never repeated
Batch process: produce more than 1 item at a time
Mass process: high volume narrow variety repetitive largely predictable
Continuous process: higher volume lower variety inflexible highly predictable

Professional services: highly adaptable people-based

Service shops: levels of volume and variety
Mass services: many customers transactions standard services

Product-process Matrix

Layout and look of operations affects flow characteristics,interaction between parts

of process and the experience of staff and customers.
Fixed-position layout:高速公路建设 心脏手术 高档餐厅 造船
Functional layout:医院 超市
Cell layout:超市的特定区域 产科 电脑配件制造
Line layout:大规模免疫计划 自助餐
Session 4

Operations performance objectives 运营绩效目标:

Quality:reduce cost&increases dependability
Speed:reduce inventories&risks
Dependability/Reliability:saves time&money
Flexibility:speeds up response&saves time&maintains dependability
(product service flexibility/mix flexibility/volume flexibility/delivery flexibility) mass
customization 大规模定制
Cost:internal effectiveness→cost reduction→improving productivity
Productivity=output/input
single-factor productivity=output/one input
Multi-factor productivity=output/all input

Operation strategy align with market requirements

Order winners/qualifiers/less important factors

4 Stages(Operations strategy objectives will change depending on the stage of the

business’s services and products)
Session 6 Operations Strategy
Content: the specific decisions and actions that set the operations role, objectives and
activities.设定业务角色、目标和活动的具体决策和行动。
Process: the method that is used to make the specific ‘content’ decisions.
用于做出特定的“内容”决策的方法。

Quality:specification of a product or service/

conformance 一致性 with which the product or service is produced
Flexibility:an operation’s ability it change
 The importance– performance matrix

Session 7 Inventory Management

Type of inventory:
Pipeline:because materials must be moved from one location to another
Buffer:against uncertainty
Anticipation:for future demand

Cycle inventories

Some reasons to avoid inventories

1. Ties up working capital
2. Require storage space
3. Deteriorate over time
4. Hide problems

Inventory decisions
Inventory profile
Inventory costs:
 cost of placing the order (clerical tasks, maintaining IS)
 price discount costs (for large quantities orders)
 stock-out costs (costs for failing to supply customers)

 working capital costs (current assets – current liabilities)

 storage costs (physically storing the goods)
 obsolescence costs (items stocked becoming obsolete, or deteriorating)

The Economic Order Quantity (EOQ) Approach

Ct=Ch*Q/2+Co*D/Q
Q=order size 单次订货量 D=demand 总需求
Ch=holding cost Co=order cost

Gradual replacement – the economic batch quantity (EBQ) model

P=parts are made and put into inventory 的速度 D=demand 消耗 inventory 的速度
When to order?
Two bin method
Continuous review re-order level
Periodic review
Session 8
Capacity Management

Capacity=flexibility,speed,reliability

Theory of Constraints
Drum=schedule,pace
Buffer 缓冲 = strategically placed inventory (time-buffer)
Rope = communication (activation)

Short-term capacity
Operating Equipment Effectiveness
Loading Time =Total Operating Time+Availability Losses
Total Operating Time=Net Operating Time+Speed Losses
Net Operating Time=Valuable Operating Time+Quality Losses
How to cope with changes in demand
Strategy 1 sets production at a fixed rate (to meet average demand)
Level capacity and uses inventory to absorb variations in demand.
(inventory) Can be costly superior customer service
Strategy 2 adjust capacity so that it is always near to the level of
Chase demand demand
(flexibility) Cost of changing capacity:
overtime/undertime subcontracting part-time workers
Strategy 3 influence demand to move from the peak periods to the
Manage demand quieter periods
(influence) Changing prices Changing offer Yield management
收益管理（Yield management 或 Revenue management），又称产出管理,指利用
不同时间段的价格差异化和折扣分配实现收益最大化的管理模式。又一定义：收
益管理是通过理解、预测消费者行为，并与之互动的过程，从而实现收益最大化
Session 9
SPC:Statistical Process Control
How to measure quality?→GAP The Gap Model

Main organizational responsibility:

Gap1&2&3:Operations Gap4:Marketing
Normal Distribution

Cp=(UTL - LTL)/6S
UTL=upper tolerance limit
S=standard deviation of the process variability

Decision Actual process state

In control Out of control
Stop process Type 1 error 错怪
Leave alone Type 2 error 放过
Session 10
Lean Operations
Lean as a philosophy of how to run operations
1. Eliminate all forms of waste
2. Involve everyone
3. Continuous improvement&Handle all problems

Lean is a method of planning and controlling operations

Lean is a set of tools that improve operations performance

7 types of waste
1. over-production
2. Waiting time
3. Excess transport
4. Unnecessary processing
5. Excess of inventory
6. Unnecessary operator motion
7. Defects

5S Method:
Sort-
Set in order-
Shine/clean-
Standardize-
Sustain

Synchronization：no defect waste delay

Kanban -signal card

Andon 警报系统
Kaizen 持续改善 plan do check act
Gemba 去现场