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Lecture Production operations management: Lecture 26 - Osman Bin Saif

In this chapter, the following content will be discussed: Objectives of inventory management, lot size decision, inventory models, EOQ, robust model, reorder point, production order quantity model, quantity discount model, probabilistic models and safety stock, probabilistic demand, other probabilistic models, fixed period system, EOQ consequences, period order quantity model. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 26 1 JIT Schedulling Kanban Toyota Production System Lean Operations Summary of last Session 2 Summary of last Session(Contd.) CHAPTER : Maintenance and Reliability Operations Global Company Profile: Orlando Utilities Commission The Strategic Importance of Maintenance and Reliability Reliability Improving Individual Components Providing Redundancy 3 3 Summary of last Session(Contd.) Maintenance Implementing Preventive Maintenance Increasing Repair Capabilities 4 4 Agenda for this Session Total Productive Maintenance Techniques for Enhancing Maintenance 5 5 CHAPTER : Decision Modeling Decision Making & Models. Decision Tables. Decision making under uncertainty. Decision making under risk. Expected value of perfect information (EVPI). Agenda for this Session (Contd.) 6 Maintenance Costs The traditional view attempted to balance preventive and breakdown maintenance costs Typically this approach failed to consider the true | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 26 1 JIT Schedulling Kanban Toyota Production System Lean Operations Summary of last Session 2 Summary of last Session(Contd.) CHAPTER : Maintenance and Reliability Operations Global Company Profile: Orlando Utilities Commission The Strategic Importance of Maintenance and Reliability Reliability Improving Individual Components Providing Redundancy 3 3 Summary of last Session(Contd.) Maintenance Implementing Preventive Maintenance Increasing Repair Capabilities 4 4 Agenda for this Session Total Productive Maintenance Techniques for Enhancing Maintenance 5 5 CHAPTER : Decision Modeling Decision Making & Models. Decision Tables. Decision making under uncertainty. Decision making under risk. Expected value of perfect information (EVPI). Agenda for this Session (Contd.) 6 Maintenance Costs The traditional view attempted to balance preventive and breakdown maintenance costs Typically this approach failed to consider the true total cost of breakdowns Inventory Employee morale Schedule unreliability 7 7 Maintenance Costs Figure 17.4 (a) Total costs Breakdown maintenance costs Costs Maintenance commitment Traditional View Preventive maintenance costs Optimal point (lowest cost maintenance policy) 8 8 Maintenance Costs Figure 17.4 (b) Costs Maintenance commitment Full Cost View Optimal point (lowest cost maintenance policy) Total costs Full cost of breakdowns Preventive maintenance costs 9 9 Maintenance Cost Example Should the firm contract for maintenance on their printers? Number of Breakdowns Number of Months That Breakdowns Occurred 0 2 1 8 2 6 3 4 Total: 20 Average cost of breakdown = $300 10 10 Maintenance Cost Example Compute the expected number of breakdowns Number of Breakdowns Frequency Number of Breakdowns Frequency 0 2/20 = .1 2 6/20 = .3 1 8/20 = .4 3 4/20 = .2 ∑ Number of breakdowns Expected number of breakdowns Corresponding frequency = x = (0)(.1) + (1)(.4) + (2)(.3) + (3)(.2) = 1.6 breakdowns