1 Production and Operations Management Overview u Operations Function u Operations Objectives u Operations Decisions u World Class Principles u Competitiveness

2 Operations Function u The Operations function consists of all activities directly related to producing goods or providing services.

3 Operations Goals u Productivity u Quality=Customer’s Perception

4 Operations Decisions u System Design –capacity –location –arrangement of departments –product and service planning –acquisition and placement of equipment

5 More Operations Decisions u System operation –personnel –inventory –scheduling –project management –quality assurance

6 World Class Principles u Continuous improvement (Kaizen) u Recognize global competition u Simultaneously pursue quality and efficiency u Total quality management (TQM) u Increased flexibility u Variance Reduction u Operation time reduction u Lead time reduction

7 More World Class Principles u Use advanced technology u Involve workers in decision making and organization rewards u Apply reengineering u Recognize environmental issues u Note the rapid growth of services

8 Competitiveness Quality Price Time Flexibility Differentiation

9 Information Technology Overview u Performance Criteria u Scope u New Technology Opportunities

10 Information Technology Performance Criteria u Accuracy u Timeliness u Ease of Use u Support of Decision Making u Cost u Scope of Coverage

11 Scope of Coverage u Support all organizational functions u Supporting organizations such as vendors through Electronic Data Interchange (EDI)

12 New Technology Opportunities u Data Warehousing u Data Mining u Internet/World Wide Web u Wireless Communication u Paperless Office u Electronic Data Interchange

13 Cyberspace Savings A World Wide Web Site Offers These Savings Cyberspace Savings A World Wide Web Site Offers These Savings Paper Copying Phone Postage Advertising Time Money