We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byDenise Burbage
Modified over 2 years ago
© 2006 Prentice Hall, Inc.1 – 1 Operations Management Chapter 1 – Operations and Productivity Chapter 1 – Operations and Productivity © 2006 Prentice Hall, Inc. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e
© 2006 Prentice Hall, Inc.1 – 2 Learning Objectives When you complete this chapter, you should be able to: Identify or Define: Diff. in Services & Goods Operations management (OM) What operations managers do Production and productivity
© 2006 Prentice Hall, Inc.1 – 3 Goods Versus Services Table 1.3 Can be resold Can be inventoried Some aspects of quality measurable Selling is distinct from production Product is transportable Site of facility important for cost Often easy to automate Revenue generated primarily from tangible product Attributes of Goods (Tangible Product) Attributes of Services (Intangible Product) Reselling unusual Difficult to inventory Quality difficult to measure Selling is part of service Provider, not product, is often transportable Site of facility important for customer contact Often difficult to automate Revenue generated primarily from the intangible service
© 2006 Prentice Hall, Inc.1 – 4 What Is Operations Management? Production is the creation of goods and services Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs
© 2006 Prentice Hall, Inc.1 – 5 Organizing to Produce Goods and Services Essential functions: Marketing – generates demand Production/operations – creates the product, helps in decisions Finance/accounting – tracks how well the organization is doing, pays bills, collects the money
© 2006 Prentice Hall, Inc.1 – 6 Marketing Sales promotion Advertising Sales Market research Organizational Charts Operations Facilities Construction; maintenance Production and inventory control Scheduling; materials control Quality assurance and control Supply-chain management Manufacturing Tooling; fabrication; assembly Design Product development and design Detailed product specifications Industrial engineering Efficient use of machines, space, and personnel Process analysis Development and installation of production tools and equipment Finance/ accounting Disbursements/ credits Receivables Payables General ledger Funds Management Money market International exchange Capital requirements Stock issue Bond issue and recall Manufacturing Figure 1.1(C)
© 2006 Prentice Hall, Inc.1 – 7 Organizational Charts Operations Ground support equipment Maintenance Ground Operations Facility maintenance Catering Flight Operations Crew scheduling Flying Communications Dispatching Management science Finance/ accounting Accounting Payables Receivables General Ledger Finance Cash control International exchange Airline Figure 1.1(B) Marketing Traffic administration Reservations Schedules Tariffs (pricing) Sales Advertising
© 2006 Prentice Hall, Inc.1 – 8 The Critical Decisions Service and product design What good or service should we offer? How should we design these products and services? Quality management How do we define quality? Who is responsible for quality? Table 1.2 (cont.)
© 2006 Prentice Hall, Inc.1 – 9 The Critical Decisions Process and capacity design What process and what capacity will these products require? What equipment and technology is necessary for these processes? Location Where should we put the facility? On what criteria should we base the location decision? Table 1.2 (cont.)
© 2006 Prentice Hall, Inc.1 – 10 The Critical Decisions Layout design How should we arrange the facility and material flow? How large must the facility be to meet our plan? Human resources and job design How do we provide a reasonable work environment? How much can we expect our employees to produce? Table 1.2 (cont.)
© 2006 Prentice Hall, Inc.1 – 11 The Critical Decisions Supply-chain management Should we make or buy this component? Who are our suppliers and who can integrate into our e-commerce program? Inventory, material requirements planning, and JIT How much inventory of each item should we have? When do we re-order? Table 1.2 (cont.)
© 2006 Prentice Hall, Inc.1 – 12 The Critical Decisions Intermediate and short–term scheduling Are we better off keeping people on the payroll during slowdowns? Which jobs do we perform next? Maintenance Who is responsible for maintenance? When do we do maintenance? Table 1.2 (cont.)
© 2006 Prentice Hall, Inc.1 – 13 Measure of process improvement Represents output relative to input Only through productivity increases can our standard of living improve Productivity Productivity = Units produced Input used
© 2006 Prentice Hall, Inc.1 – 14 Productivity Calculations Productivity = Units produced Labor-hours used = = 4 units/labor-hour 1, Labor Productivity
© 2006 Prentice Hall, Inc.1 – 15 Example 1.6
© 2006 Prentice Hall, Inc.1 – 16 Multi-Factor Productivity Output Labor + Material + Energy + Capital + Miscellaneous Productivity = Also known as total factor productivity Output and inputs are often expressed in dollars
© 2006 Prentice Hall, Inc.1 – 17 Example 1.7
© 2006 Prentice Hall, Inc.1 – 18 Service Productivity Typically labor intensive Frequently focused on unique individual attributes or desires Often an intellectual task performed by professionals Often difficult to mechanize Often difficult to evaluate for quality
Operations Management Production is the creation of goods and services Operations management is the set of activities that creates goods and services through.
1 Operations Management Lesson 1 Fundamentals of Operations Management Prepared by Sudarsan Jayasingh.
McGraw-Hill/Irwin © The McGraw-Hill Companies, All Rights Reserved BUSINESS PLUG-IN B16 Operations Management.
Purchasing and Supply Chain Management by W.C. Benton Chapter One Purchasing and Supply Management.
Supply Chain Management Workshop Buenos Aires, 13 de Agosto de 2004.
7-1 Chapter 7 Enterprise-Wide Information Systems
BA240: Operations Management Overview Manufacturing & Services Process Mapping The Role of Technology POM Software Demo Measuring Productivity Exercises.
Introduction to Operations Management Contents 1- What is Operations Management (OM)? 2- Importance of OM. 3- OM decisions. 4- OM's contributions to.
Value Chain Management: Functional Strategies for Competitive Advantage McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill.
9.1 © 2007 by Prentice Hall 9 Chapter Achieving Operational Excellence and Customer Intimacy: Enterprise Applications.
1-1 Purchasing and Supply Chain Management by W.C. Benton Chapter One Purchasing and Supply Management Copyright © 2010 by The McGraw-Hill Companies, Inc.
Understanding Organizational Markets and Buying Behavior Chapter 5 McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost Chapter 3: The E-Marketing Plan © Prentice Hall 2003.
Hall, Accounting Information Systems, 7e ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly.
10-1 McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
WORKSHOP Conducted by : Mr. Irfan Abdullah Pre-Production Planning & Apparel Engineering Pre-Production Planning & Apparel Engineering.
Chapter Eight Producing Quality Goods and Services 8 | 1.
ERP MODULES. HUMAN RESOURCE MODULE Human resource management is an essential factor of any successful business. The various subsystems under HR module.
1 Target Costing If you cannot find the time to do it right, how will you find the time to do it over?
Chapter 15 Preparing for partnership with suppliers: cost approaches and techniques.
OPERATIONS MANAGEMENT +. Introduction ………………………………………………….
PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc.,
Chapter 6 Service costing 6-1 Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management Accounting 5e by Langfield-Smith Prepared by.
The Ten Principles of Material Handling The Key to Greater Productivity, Customer Service and Profitability.
Chapter 13 Order Fulfillment, eCRM, and Other Support Services.
1 Introduction to Business Processes in Oracle Applications.
Chapter 8 Order Management and Customer Service Learning Objectives After reading this chapter, you should be able to do the following: Understand the.
1. 2 Chapter 1 Introduction to Operations Management.
Chapter 14 Contemporary approaches to measuring and managing performance 14-1 Copyright 2009 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Management.
© 2016 SlidePlayer.com Inc. All rights reserved.