“Develop success from failures. Discouragement and failure are two of the surest stepping stones to success.”
Methodologies of Six Sigma:
DMAIC
DMAIC (define, measure, analyze, improve, control) is an approach to problem-solving defined by Motorola as part of the Six Sigma management philosophy.
DMAIC: This method is used primarily for improving existing business processes. The letters stand for:
a. Define the problem and the project goals
b. Measure in detail the various aspects of the current process
c. Analyze data to, among other things, find the root defects in a process
d. Improve the process
e. Control how the process is done in the future.
DMADV
DMADV: This method is typically used to create new processes and new products or services. The letters stand for:
a. Define the project goals
b. Measure critical components of the process and the product capabilities
c. Analyze the data and develop various designs for the process, eventually picking the best one
d. Design and test details of the process
e. Verify the design by running simulations and a pilot program, and then handing over the process to the client
1. What is ISO: (international organization for standardization) international standard give state of the art specification for products, services and good practice, helping to make industry more efficient and effective. They help to break down barrier to international trade.
What we do: food safety to computers, and agriculture to healthcare, ISO international standards impact all our lives. It is covering almost all aspects of technology and business.
The cycle of management:
a. Plan:
1. Establish your objectives.
2. Make plans
2 (a) analyze your organization situation
2 (b) establish your overall objectives
2 (c) set your targets
2 (d) develop plans to achieve them.
b. Do: implement your plans.
c. Check: measure your results
d. Act: correct and improve you plans and how put them into practice.
2. Quality control process: quality is the key element in every stage of the production process form raw material to finish product.
Eight elements quality control process:
a. Ethics: ethics is a value based on hard work. Personal sincerity.
b. Integrity: morals, values, fairness, honest and sincerity.
c. Trust: trust at client and workers.
d. Training: provide appropriate training.
e. Teamwork:
f. Leadership: leadership does not only refer to top management. It is found at all levels and workers need to be guided by leader.
g. Communication: three direction
G (1) downward: top management to employees.
G (2) upward: where workers provide management.
G (3) sideways: supplier and customer.
h. Recognition: team should have their efforts ideas, and achievement and increase productivity.
These all element divided into four group:-
1. Foundation: ethics, integrity and trust.
2. Building: training, teamwork, leadership.
3. Binding martar: communication
4. Roof: recognition.
Steps of process management:
1. Evaluation:
a. Process for improvement.
b. Define the role responsibilities of the team member
c. Identify process goal.
2. Identify the stakeholder:
a. Requirement from the process.
3. Describe the current process:
a. Current performance.
4. Measure the process:
5. Identify blockage and barriers:
a. Apply problem solving technique
6. Root cause:
a. Source of every identify barriers.
7. Develop solution and implementation plan:
3. Element of TQM:
1. Focus on customer (internal and external).
2. Involvement of the entire printing organization.
3. Requires a team effort (support).
4. Empowering employees: improve quality, productivity and take decision quality and change material, procedure, equipment and doing the job more effectively.
5. Mind set for process improvement.
6. Benchmark for process improvement all areas include marketing, sales, billing, training, maintenance.
7. Partnering with supplier and customers.
Inventory management is the function responsible for all decisions about stock in an organization. It makes decisions for policies, activities and procedures to make sure the optimal amount of each item is held in stock.
Types of Inventories
An organization may hold different types of stock which may be classified as:
• Raw materials, which have arrived from suppliers and are kept until needed for operations;
• Work in progress, stock which is currently being worked on;
• finished goods, which are waiting to be shipped to customers.
This is a fairly arbitrary classification, as one organization’s finished goods are another organization’s raw materials. Some organizations specially retailers and wholesalers have stocks of finished goods only, while others like manufacturers have all three types.
Another classification of stock describes its overall purpose:
• Cycle stock is the normal stock used during operations;
• Safety stock is a reserve of materials that is held for emergencies.
Purposes for keeping Inventories
The major purposes that Inventories serve, are of three kinds: transaction, precautionary, and speculative motives.
• The transaction motive results from the fact that it is not generally possible even in the case of certainty to synchronize perfectly the inflow and outflow of the commodity in question. Inventories are therefore held in order to compensate for the lack of synchronization and maintain operational smoothness.
• The precautionary motive results from the usual inability to predict demand exactly. Most of inventory problems are under risk; therefore inventories are built to act as a cushion between supply and demand.
• The speculative motive results when prices are rising or when there are expected changes in costs. Under these circumstances, profits may be made by holding inventories at the lower price until the higher price obtains. In usual inventory analysis the speculative motive is given the lesser importance. Apart from these motives another reason for maintaining inventories, a reason particularly important to retail establishments, is that sales and profits can be increased if one has an inventory of goods to display to customers.
Economic Order Quantity (EOQ): It is the optimal size of an order when the total variable cost of an inventory system is minimal.
Basic Economic Order Quantity model (EOQ)
This section describes one of the standard analyses of inventory control. It shows how we can balance the various costs involved in the system to answer the question, ‘How much to order?’ The approach is to build a model of an imaginary inventory system and calculate the fixed order quantity that minimizes total costs. This optimal order size is called the economic order quantity (EOQ). The EOQ calculation is the most important analysis of inventory control, and arguably one of the most important results derived in any area of operations management.
5.5.1.1. Assumptions and Notations
The EOQ model is applicable under the following assumptions and notations:
• The demand is known exactly, is continuous and is constant over time;
• All costs are known exactly and do not vary;
• Replenishment rate is infinite;
• Replenishment is instantaneous, so that entire ordered lot arrives in stock at the same time and can be used immediately;
• No shortages are allowed i.e shortage cost is very high
• Lead time is negligible – so a delivery is made as soon as the order is placed;
• The model is for only one item.
Notations:
λ : demand rate per unit time
Q : order quantity
T : inventory cycle length
A : Cost of ordering (or procurement cost or replenishment cost). For manufacturing goods. it is known as set up cost.
q(t) : instantaneous inventory level at any time t
C : unit purchase cost of item
I : inventory carrying charge per unit per unit time and
IC : Cost of holding (also known as inventory carrying cost) is IC per unit per unit time.
2. MODEL FORMULATION:
The EOQ derivation uses a standard approach that is suitable for basic inventory control models. It has three steps, as follows:
1. Find the total cost of one inventory cycle.
2. Divide this total cost by the cycle length to get a cost per unit time.
3. Minimize this cost per unit time by differentiating the cost function with respect to the order quantity which is the decision variable.
Now we can describe the situation of inventory for one inventory cycle using figure 1.1, at time t=0, we place an order for a quantity, Q, which arrives instantly and is used at a constant demand rate, λ. And at the end of cycle at t=T, no stock remains and it is time to place another order. The cycle has a length T. We know that during the cycle the amount entering stock is Q, while the amount is leaving constantly at the rate of λ during the whole cycle (T) which is equal to λ × T. These must be equal as the stock level at both the start and finish of the cycle is zero. Amount entering stock in cycle = amount leaving stock in cycle
so Q = λ × T
Fig 5.1: EOQ model behavior
The first step of the analysis finds the total costs for a cycle, and we find this by adding the three separate components; purchase cost for Q units, ordering or set up, and inventory carrying cost (remembering there are no shortage costs).
Hence:
Total cost per cycle = purchase cost for Q units + ordering cost + inventory carrying cost
Ware House:
Ware house is a strong room. A warehouse in a printing press is a place where printed and unprinted stock of paper is stored till it is further required for processing but early days, warehouse has a dual purpose that is storage of paper and to perform preliminary bindery operations. The main task of the warehouse man is to receive stock check and a properly receipt. He keeps a complete record of the stock of all papers available in the warehouse.
Types of warehouse:
1. White paper ware house: a white paper warehouse is mainly used to store un-printed papers, cards board in different, sizes, qualities, grammage. It has a humidity of more than 7-8%.
2. Printed paper warehouse: it is used to stock printed sheets of paper in a printing press. It should always be piled on wooden or metal pallet to avoid spoilage of printed sheets during handling.
3. Practice warehouse: a practice warehouse is a storage-cum-work place along with the storage of printed and un-printed stock of paper. It is also equipped with basic binding machine to perform preliminary bindery operations e.g. jogging, knocking, counting, folding, gathering, and collating, numbering, perforating, stitching, cutting and trimming etc also called warehouse operations.