operations management lec 01 - intro
TRANSCRIPT
8/18/2019 Operations Management Lec 01 - Intro
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Operations
Management
Operations and ProductivityChapter 1
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Organizing to Produce Goods and
ervices
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Organizing to Produce Goods andervices
♦Essential functions:♦ Marketing – generates demand
♦ Operations –creates the product
♦ Finance/accounting – tracks organizational
performance, pays bills, collects money
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Organizational !unctions
♦Mar"eting♦ Gets customers
♦Operations♦ creates product or service
♦!inance#$ccounting♦ Obtains funds
♦ %rac"s money© 1995 Corel Corp.
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Sample Organization Chart s
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!unctions & 'an"
Operations!inance#
$ccountingMar"eting
Chec"
Clearing
%eller
cheduling
%ransactions
Processingecurity
Commercial 'an"© 1984-1994
T/Maker Co.
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!unctions & $irline
Operations!inance#
$ccountingMar"eting
Ground
upport
!light
Operations
!acility
MaintenanceCatering
$irline© !"#$!!# %/Maker &o'
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!unctions & Manufacturer
Operations!inance#
$ccountingMar"eting
Production
ControlManufacturing
(uality
ControlPurchasing
Manufacturing
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Organizational Charts
&ommercial (ank
Operations
%eller )cheduling&heck &learing
%ransactionsprocessing
Facilities
design/layout*ault operations
Maintenance
)ecurity
Finance
+nestments)ecurity
-eal Estate
.ccounting
.uditing
Marketing
oans &ommercial
+ndustrial
Financial
0ersonal
Mortgage
%rust 1epartment
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Organizational Charts.irline
Operations2round supporte3uipment
Maintenance
2round Operations Facility maintenance &atering
Flight Operations
&re4 scheduling Flying &ommunications 1ispatching
Management science
Finance 5
.ccounting
.ccounting0ayables
-eceiables
2eneral edger
Finance
&ash control+nternational e6change
rates
Marketing%raffic administration-eserations)chedules%ariffs 7pricing8)ales.dertising
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Organizational ChartsManufacturing
OperationsFacilities: &onstruction:maintenance
0roduction 5 inentory control )cheduling: materials control
)upply$chain management
Manufacturing %ooling, fabrication,assembly
1esign 0roduct deelopment and design
1etailed product specifications+ndustrial engineering
Efficient use of machines, space, and personnel
0rocess analysis
1eelopment and installation of production tools ande3uipment
Finance 5 .ccounting1isbursements/credits
-eceiables
0ayables
2eneral ledgerFunds Management
Money market
+nternational e6change
&apital re3uirements
)tock issue (ond issues and recall
Marketing)alespromotions.dertising)alesMarketresearch
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Why tudy OM?
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Why tudy OM?
♦OM is one of three ma)or functions
*marketing, finance, and operations+ of any
organization,
♦We -ant *and need + to "no- ho- goods andservices are produced,
♦We -ant to understand -hat operations
managers do,♦OM is such a costly part of an organization,
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What Operations Managers .o
Plan & Organize & taff & /ead & Control
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%en Critical .ecisions
♦ ervice0 product design,,♦ (uality management
♦ Process0 capacity design,,
♦ /ocation ,
♦ /ayout design ,,
♦ 2uman resources0 )ob design,,
♦ upply&chain management
♦ Inventory management ,♦ cheduling
♦ Maintenance ,
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%he Critical .ecisions
♦Quality management ♦ Who is responsible for 3uality?
♦ 2o- do -e define 3uality?
♦Service and product design♦ What product or service should -e offer?
♦ 2o- should -e design these products and
services?
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%he Critical .ecisions & Continued
♦Process and capacity design♦ What processes -ill these products re3uire and in
-hat order?
♦ What e3uipment and technology is necessary forthese processes?
♦Location♦
Where should -e put the facility♦ On -hat criteria should -e base this location
decision?
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%he Critical .ecisions & Continued
♦Layout design♦ 2o- should -e arrange the facility?
♦ 2o- large a facility is re3uired?
♦Human resources and jo design♦ 2o- do -e provide a reasonable -or"
environment?
♦ 2o- much can -e e4pect our employees toproduce?
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%he Critical .ecisions & Continued
♦Supply chain management ♦ hould -e ma"e or buy this item?
♦ Who are our good suppliers and ho- many should
-e have?
♦ !nventory, material re"uirements planning,♦ 2o- much inventory of each item should -e have?
♦
When do -e re&order?
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%he Critical .ecisions & Continued
♦ !ntermediate, short term, and projectscheduling♦ Is subcontracting production a good idea?
♦ $re -e better off "eeping people on the payrollduring slo-do-ns?
♦#aintenance♦ Who is responsible for maintenance?♦ When do -e do maintenance?
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Where are the OM 5obs
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Where are the OM 5obs
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Where $re the OM 5obs?
♦%echnology#methods♦!acilities#space utilization♦trategic issues♦
6esponse time♦People#team development♦Customer service♦(uality♦Cost reduction♦ Inventory reduction♦Productivity improvement
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%he 2eritage of Operations Management
ignificant 7vents in Operations
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ignificant 7vents in OperationsManagement
%he 2eritage of
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%he 2eritage ofOperations Management
.ivision of labor *$dam mith 1889 and Charles 'abbage 1:;<+
tandardized parts *Whitney 1:==+
cientific Management *%aylor 1::1+
Coordinated assembly line *!ord#orenson#$very 1>1+Gantt charts *Gantt 1>19+
Motion study *!ran" and /illian Gilbreth 1><<
(uality control *he-hart 1><@A .eming 1>;=+
Computer *$tanasoff 1>:+
CPM#P76% *.uPont 1>;8+
%he 2eritage of Operations
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%he 2eritage of OperationsManagement & Continued
Material re3uirements planning *Orlic"y 1>9=+
Computer aided design *C$. 1>8=+
!le4ible manufacturing system *!M 1>8;+
'aldrige (uality $-ards *1>:=+
Computer integrated manufacturing *1>>=+
Globalization*1>><+
Internet *1>>;+
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7li Whitney
♦ 'orn 189;A died 1:<;
♦ In 18>:0 received government
contract to ma"e 1=0===
mus"ets
♦ ho-ed that machine toolscould ma"e standardized parts
to e4act specifications♦ Mus"et parts could be used in any
mus"et© 1995 Corel Corp.
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%aylorF Management hould %a"e
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%aylorF Management hould %a"eMore 6esponsibility for
♦Matching employees to right )ob
♦Providing the proper training
♦Providing proper -or" methods and tools
♦7stablishing legitimate incentives for -or"
to be accomplished
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♦ 'orn 1:9A died 1>@8♦ In 1>=0 created !ord
Motor Company
♦ In 1>10 first usedmoving assembly line
to ma"e Model %♦ Jnfinished product
moved by conveyorpast -or" station
♦ Paid -or"ers very -ell for 1>11 *K;#day+
2enry !ord
‘#ake them all
alikeD
© 1995 Corel
Corp.
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W, 7d-ards .eming
♦ 'orn 1>==A died 1>>
♦ 7ngineer E physicist
♦ Credited -ith teaching 5apan
3uality control methods inpost&WW<
♦ Jsed statistics to analyze
process♦ 2is methods involve -or"ers
in decisions
i ifi i O
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ignificant 7vents in OM
♦.ivision of labor *mith0 1889+
♦ tandardized parts *Whitney0 1:==+
♦ cientific management *%aylor0 1::1+♦Coordinated assembly line *!ord 1>1+
♦Gantt charts *Gantt0 1>19+
♦Motion study *the Gilbreths0 1><<+♦(uality control *he-hart0 1><@+
i ifi 7 C i d
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ignificant 7vents & Continued
♦CPM#P76% *.upont0 1>;8+
♦ M6P *Orlic"y0 1>9=+
♦C$.♦ !le4ible manufacturing systems *!M+
♦Manufacturing automation protocol *M$P+
♦Computer integrated manufacturing *CIM+
L Ch ll i OM
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Le- Challenges in OM
♦ /ocal or national focus
♦ 'atch shipments
♦ /o- bid purchasing
♦ /engthy product
development
♦ tandard products
♦ 5ob specialization
♦ Global focus♦ 5ust&in&time
♦ upply chain
partnering
♦ 6apid product
development0
alliances♦ Mass customization
♦ 7mpo-ered
employees0 teams
From %o
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Operations in the ervice ector
Ch t i ti f G d
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Characteristics of Goods
♦ %angible product
♦ Consistent product
definition
♦ Production usuallyseparate from
consumption
♦ Can be inventoried♦ /o- customer
interaction© 1995 Corel Corp.
Characteristics of er ice
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Characteristics of ervice
♦ Intangible product
♦ Produced E consumed at
same time
♦ Often uni3ue♦ 2igh customer interaction
♦ Inconsistent product
definition♦ Often "no-ledge&based
♦ !re3uently dispersed© 1995 Corel Corp.
ervice 7conomies
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ervice 7conomiesProportion of 7mployment in the ervice ector
0
10
20
30
40
50
60
70
80
Country
Goods ersus ervices
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Goods ersus ervices
♦Can be resold
♦Can be inventoried
♦ome aspects of
3uality measurable
♦elling is distinctfrom production
♦6eselling unusual
♦.ifficult to
inventory♦(uality difficult to
measure
♦elling is part ofservice
Goods ervice
Goods ersus ervices &
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Continued
♦Product istransportable
♦ite of facilityimportant for cost
♦Often easy to
automate♦6evenue generated
primarily fromtangible product
♦Provider0 not productis transportable
♦ite of facilityimportant forcustomer contact
♦Often difficult to
automate♦6evenue generated
primarily fromintangible service,
Goods ervice Goods ervice