Operations Management Final Essay Example

the terminal at the gate, passenger boarding also can be a bottleneck if the boarding process itself is not carefully managed. In 2007, as part of the company’s improvement activities, Southwest focused its attention on the passenger boarding process to determine whether there was a better way to board. Its existing process consisted of three groups: A, B, C, with no assigned seating. Depending on passenger check-in and arrival time, passengers were given a spot in group. Those first to check-in received choice places in the A group.тLast to check-in ended up in the C group, and usually had a choice of only middle seats in the back of the plane upon boarding. As passengers arrived at the gate, they queued up in their respective boarding group areas to await the boarding call.

Q4. How will Southwest know that the bottleneck had indeed eliminated after the change in the boarding process?

Answer: It can be evaluated by the change of the gate-turnaround time. If the bottleneck in the boarding process has been eliminated, then the gate-turnaround time should be shorter than 25 minutes. Meanwhile, profitability and customer satisfaction should be improved.

Chapter 8 Designing Lean Systems

Video Case: Lean Systems at Autoliv

Q1. Why is a visual management approach such an integral part of Autoliv’s lean system? It allows Autoliv to keep track of work time needed to complete a customer’s order. A “rail” is used for the management of the heijunka cards in each cell. For instance, if the card is green, it means the work on a product that fulfills the customer’s order can be completed during normal

working hours. If the card is yellow, overtime is needed to complete the order. But if the card is red, it means weekend overtime is needed. Also, the visual communication allows for the determination of when a group of cells is backed-up and not performing properly. If a cell is not performing at the required pace to meet customer demand, the cards will stack up on the rail and provide a very visual cue that the cell is not meeting expectations. And, this will provide an opportunity for the cell team members and management to implement immediate countermeasures to prevent required overtime if the situation is not remedied.

Q2. Describe the JIT considerations presented in the chapter as they relate to Autoliv’s manufacturing environment?

The following are types of Just in Time (JIT) activities according to the Tokyo

Production System (TPS): Eliminate waste or muda: by cutting excess capacity or inventory and removing non-value-added activities.

Kaizen: the understanding that excess capacity or inventory hides underlying problems with the processors that produce a service or a product.

Jidoka: automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur.

Poka-yoke: mistake-proofing methods aimed at designing fail-safe systems that minimize human error.

Takt time: cycle time needed to match the rate of production to the rate of sales or consumption. Heijunka: the leveling of production load by both volume and product mix.

Q3. Which method of workflow is embodied in Autoliv’s system? Why is this approach most suitable to its lean environment? The Kanban System – a card is attached

to each container of items produced. The container holds a given percent of the daily production requirements for an item. When the user of the parts empties a container, the card s removed from the container and put on a receiving post. The empty container is then taken to the storage area; the card signals the need to produce another container of the part. When the container has been refilled, the card is put back on the container which is then returned to a storage area. The cycle begins again when the use of the part retrieves the container with the card attached.

Q4. When Autoliv started its lean journey, a number of operational benefits and implementation issues had to be addressed. What were they, and how were they addressed? Autoliv was not able to meet customer demands by fulfilling the needs of its automakers; they were pressured to change operations. They adopted the Autoliv Production System (APS) which was modeled after the Toyota Production System (TPS). In order to resolve visible problems, Autoliv performed daily audits, monthly training, and more in-depth education to help focus attention on where changes needed to be made. If there as an abnormal condition during the work execution that slowed down the work of the cell or stopped altogether, a “stop and fix” model was put into place. This allowed Autoliv to stop the production line immediately and be able to correct the problem before operations got worse.

Next, to help focus efforts daily, Autoliv had a blue “communication wall” that everyone sees as they head to their work site. The wall contains the company’s “policy department,”

which consists of company-wide goals for customer satisfaction, shareholder/financial performance, and safety and quality. Consequentially, all aisles and walkways surrounding cells are to be clear of materials debris, or other items. If anything appears in those areas, everyone can quickly see the abnormality and be able to keep the areas surrounding the cells clear of debris.