AAOM Handbook

When a change in the quality of execution or resourcing occurs there is typically a time lag between this change and the evidence in the output. This occurs for both reductions and increases in effort and is indicated by the loop drawn around the curve (known as a hysteresis loop). This suggests the type of see sawing performance, and associated losses, that occurs when the Right Work is not consistently done at the Right Time and in the Right Way. The transform, transfer and store work steps in a production process are determined in the design Theory of the process. This is guided by the Purpose of the process, the inputs available to it and the underlying theory (which may include physics, chemistry and technology, etc.) applied to deliver the Purpose. The production process work steps do not change unless the underlying design Theory changes. However, if the process or its Theory is complex, the transform, transfer and store work steps may perhaps be organised in a number of alternate ways (series/parallel arrangement of the steps), with different impacts on the effectiveness or efficiency of the process. The process Theory may also allow choices around operating set points for parameters such as speed/flow, temperature, recipe, chemistry, etc. that can alter the rate of process throughput, and therefore the effective efficiency and capability asymptotes, to a value below the design limiting values. Finally, the performance/effort curve of a process can also be shifted by changing the input or output specifications. Optimising Production strategy for a given performance target therefore involves a range of choices that can be made around organisation of the process work steps determined by the process design, and how the process is operated; i.e. running time, rate set points, and what quality of inputs and outputs are specified. The optimum Production and Service Strategy choices will be the balance of choices that best meet the Effectiveness, Efficiency and Sustainability targets of the process. These choices will define the Right Work, Right Time and Right Way for transform, transfer and store work steps. Right Work The Right Work for a production process is defined through; • identification of each distinct work step required for the transformation, transfer or storage of the material, service or information, and • identification of the arrangement, sequencing and dependencies for each work step. The Right Work can be defined with a flowchart or animation of the work steps in the Production process. Note. This is what the Operating Model design flowcharts do, and is also what a process plant flow-sheet does. Right Time The fact that there is sequencing and dependency of Production work steps indicates that there is a Right Time for each action. The Right Time will be a trigger event and trigger tolerance that will be determined by the flow-sheet of the process and/or the specification for the Production steps. Trigger events may take a variety of forms;

© McAlear Management Consultants 2006

Operational Planning: Set Production Strategy

Updated: August 2018

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