HARVARD RESEARCH PAPER

Harvard Research Paper

Optimising Production and Operations

Introduction

A manufacturing optimization strategy is developed and demonstrated, which combines an asset utilization model and a process optimization framework with multivariate statistical analysis in a systematic manner to focus and drive process improvement activities. Although this manufacturing strategy is broadly applicable, the approach is discussed with respect to a polymer sheet manufacturing operation. The asset utilization (Au) model demonstrates that efficient equipment utilization can be monitored quantitatively and improvement opportunities identified so that the greatest benefit to the operation can be obtained. The process optimization framework, comprised of three parallel activities and a designed experiment, establishes the process-product relationship. The overall strategy of predictive model development provided from the parallel activities comprising the optimization framework is to synthesize a model based on existing data, both qualitative and quantitative, using canonical discriminant analysis, to identify main effect variables affecting the principal efficiency constraints identified using AU, operator knowledge and order-of-magnitude calculations are then employed to refine this model using designed experiments, where appropriate, to facilitate the development of a quantitative, proactive optimization strategy for eliminating the constraints. Most importantly, this overall strategy plays a significant role in demonstrating, and facilitating employee acceptance, that the manufacturing operation has evolved from an experienced-based process to one based on quantifiable science.

optimizing production and operations as a operational manager in Australia

1. Optimizing the Manufacturing Process

A basic and first level definition of manufacturing excellence is making product to customer specification in the most cost-effective manner with efficient use of resources (equipment and people) and delivering to the customer on time. Numerous Australia articles and books of have been published on manufacturing excellence, which typically encompasses just-in-time manufacturing, total quality management, total productive maintenance (TPM), and employee involvement (Hall 1984; Schonberger 1986).

Five basic objectives of manufacturing excellence are

Match throughput with demand-make only what is needed

Reduce inventory

Maintain high quality throughout the operation

Reduce lead times

Reduce operating expenses.

Achieving these objectives will maximize efficient operation in a cost-effective manner while fulfilling customers' demands for high quality, short lead times, and flexibility.

Operational judgment in Australia is key in achieving these objectives because various trade-offs exist in reducing inventory versus reducing lead times versus reducing operating expenses. The goals and approaches selected to accomplish these objectives must be grounded through an integrated production and inventory strategy suited for the business's product customization and delivery performance expectations on a make-to-stock, make-to-order, or assemble-to-order basis.

Driving continual and rapid improvements in these basic objectives will result in continuing improvements in quality, delivery performance, manufacturing efficiencies, and operating costs; all of which will contribute to the profitability objectives of the enterprise.

Looking across Australia manufacturing operations, we find that these operations are at different stages in achieving manufacturing excellence. Additionally, the opportunities for improvement vary considerably with the type of industry and from operation to operation within an industry. Such operational divergence facilitates the evolution of a virtual continuum of paths toward manufacturing excellence. Nowhere is this more apparent than in the recent proliferation of ...