NOTES OF DR. MITCHEL F. BLOOM
PRODUCTION AND OPERATIONS MANAGEMENT
BOSTON UNIVERSITY
JANUARY 1, 2001
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ITEM PAGE
Forward to Class Notes 1
Introduction; Systems Approach to Firm and Goldratt’s Goal 1
Brief Overview of Goldratt’s Basic Measures 2
Contrast Goldratt’s Goal for Firm with Goals for Non-Profit Organization 3
Measures of Effectiveness and Efficiency 4-5
Student Research Projects on Non-Profit Organizations 5
Operations Strategy 6
Four Basic Operations Strategies 6
Operations Strategy in Services 7
Group Project Plan Instructions 8
Group Project Tools 8-10
Open Ended Questionnaires 11
Closed Ended Questionnaires 11-12
Sample Surveys 12
Population Surveys 12
Sample of Graphic Project Tools from Text 13
PERT-Gantt Problem 14
Wedding Problem: Practical Interpretation 15
Job Design 16
Time Study: Normal Time and Standard Time 17
Work Sampling: Determining the Number of Observations 17-18
Table: Number of Observations Required in Random Sampling 19
Learning Curves 20
Manufacturing: Product Design and Process Selection 21
Design/Development Sequence Model 21
Process Selection/Process Flow Choice 22
Ping-Pong Paddle Problem 23
Assembly Drawing Ping-Pong Paddle 24
Assembly Chart for a Big Mac Hamburger 25
Design of Services 26
Customer is the Focus in Services Triangle 26
Elements of a Service Strategy; Poka-yokes 27
Questions on Supplement: Technology Management 28-29
Questions on Product design and Process Selection--Services 29-30
Case: Hank Kolb, Director Quality Assurance 31-32
Hank Kolb Case Analysis-Fishbone Diagram 33
SMART Chart 34
Hank Kolb Case SMART Chart Application 34-35
Attribute Chart 36-37
Total Quality Management 38
The Baldridge Award 38
Continuous Improvement 39
Tools and Techniques Used in Continuous Improvement Systems 39-42
The Shingo System and ISO 9000 43
ISO 9000 Brake Repair Example 44
Statistical Quality Control 45
Process Control Procedures 45-46
Acceptance sampling 47-49
Problems in Acceptance Sampling 50
Answer to Problem 10 51
Programming Calculator to Yield Cumulative Poisson Probabilities 52
Poisson tables 53-56
Capacity Planning 57-58
Decision Tree Problem 59
Strategic Capacity Management 60-62
Aggregate Planning 63
Flow Diagram of Aggregate Planning Process 64
Example of Calculation of FTE 65
Cut and Try Planning Strategies/ Costs and Benefits 65-66
Example: Calculation of a Production Plan 66-67
Corning Glass Works - Erwin Automotive Plant - Case Constraints 68
Forecasting 69
Types of Forecasts 70-71
Time Series Analysis; Simple Moving Average 72
Weighted Moving Average 72
Exponential Smoothing 73
Exponential Smoothing with Trend 74
Adaptive Forecasting and Accuracy of Methods 75
Errors in the Forecast 76
Decomposition of Time Series: Seasonality 76-78
Linear Regression Analysis 78-79
Multiple Regression and Focus Forecasting 80
Forecasting: Problem Using Amalgamated Forecasting Approach 81
ETE (Estimate-Talk-Estimate) Forecast 82-83
Future Forecast; MAPE and APE of Forecast 84-85
Financial Analysis in POM 86
Ranking Alternative Investments and Benihana Alternative Strategies 87-88
Facility Layout 89-91
Systematic Layout Planning - Department Store Example 92-93
Items to Know for Final Examination Regarding the Book, The Goal 94-95
Synchonous Manufacturing -- Theory of Constraints 96
Operational Definitions of Goldratt 96
Bottlenecks 96-97
Different Times in TOC 97
Drum, Buffers and Ropes -- Diagrams and Problem 98-99
How Much to Produce 100-101
Batch Sizes through a Bottleneck 101-102
Bottlenecks with Setups, Non-Bottlenecks, Elevation of BN’s,
Hockey Stick Phonomenon 102
Inventory, Allocation of Overhead 103
Bottleneck Game 105
Instructions, Data and Definitions 105-107
Table of Data Description 107-108
Specification Sheet for Bottleneck Game 109
Purchase Order Form for Bottleneck Game 110
Timesheet for the Bottleneck Game 110
Sales Chart for the Bottleneck Game 111
Bottleneck Game Table 112
Goldratt’s Method of Analyzing and Solving Problems Using UDE’s 113-114
JIT Production Systems 115
Little JIT versus Big JIT 115
JIT in Services 116
Simulation 117
Bob and Ray Two Stage Assembly Line 117-119
Political Implementation of Change in an Organization 120
Political Implementation Chart 121
Operations Consulting 122
How to Consult: The Steps 123
Operations Consulting Tool Kit 123-124
Suggested Procedure for Using the Techniques and Tools in POM Course 125
Project Planning Tools 125
Data Collection Tools 125
Analyzing the Data 125
Determining the Solution to the Problem 126-127
Implementation 127
Lessons Learned 127
Appendix A: True/False and Multiple Choice Questions 128
Answer Sheet to Fill Out and Hand In 129
Questions 130-140
Appendix B: Financial and Statistical Tables 141
Present Value of a Single Future Payment 142
Present Value of a Series of Future Equal Payments 143
Areas of Standard Normal Distribution 144
Uniformly Distributed Random Digits 145
Appendix C: Examples of the Types of Questions on the Examinations 146-154
Index 155-157