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Chapter 11: Operations Management in Manufacturing and Service Industries
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2. Exploring Business 2.0 © 2012 Flat World Knowledge
Chapter Objectives
Define operations management, and discuss the role of the operations manager in a manufacturing company.
Describe the decisions made in planning the production process in a manufacturing company.
Describe four major types of facility layouts: process, product, cellular, and fixed position.
Identify the activities undertaken by the operations manager in overseeing the production process in a manufacturing company.
Explain how to create and use both PERT and Gantt charts.
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3. Exploring Business 2.0 © 2012 Flat World Knowledge
Chapter Objectives
Explain how manufacturing companies use technology to produce and deliver goods in an efficient, cost-effective manner.
List the characteristics that distinguish service operations from manufacturing operations.
Describe the decisions made in planning the product delivery process in a service company.
Identify the activities undertaken to manage operations in a service organization.
Explain how manufacturing and service companies alike use total quality management and outsourcing to provide value to customers.
Exploring Business 2.0 © 2012 Flat World Knowledge

4. Operations Management
“…consists of all activities involved in transforming a product idea into a finished product, as well as those involved in planning and controlling the systems that produce goods and services.”
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5. The Transformation Process
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6. Operations Management:
Manufacturing
“…manufacturers…perform the same basic function: to transform resources into finished goods.”
Operations Management:
Production Planning
Production Control
Quality Control
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7. Planning: Production Method Decisions
Make-To-Order
Mass Production
Mass Customization
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Facilities Decisions
Site Selection
Close to suppliers, customers, or both
Supply of skilled workers
Quality of life
Resource costs
Business climate
Capacity Planning
Layout Planning
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Facility Layout
“…how equipment, machinery, and people will be arranged to make the production process...efficient...”
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Process Layout
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Product Layout
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Cellular Layout
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Materials Management
“…encompass(es)... activities: purchasing, inventory control, and work scheduling.”
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14. Purchasing And Supplier Selection
E-Purchasing
Electronic Data Interchange
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Inventory Control
Just-In-Time
Material Requirements Planning
Manufacturing Resource Planning
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Work Scheduling
Master Production Schedule
Gantt Charts
PERT Charts
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Gantt Chart
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PERT Chart
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19. Technology Of Goods Production
Computer-Aided Design
Computer-Aided Manufacturing
Computer- Integrated Manufacturing
Flexible Manufacturing Systems
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20. Differences Between Manufacturers and Service Providers
Intangibility
Customization
Customer Contact
Operational Efficiency...Important (to both)
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21. Service Provider Decisions
What services/goods to offer?
How to provide services?
Where to locate business and what will it look like?
How to forecast demand for services?
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Operations Planning
Operations Processes
Make-To-Order
Make-To-Stock
Facilities
Site Selection
Size/Layout
Capacity Planning
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Managing Operations
Scheduling
Inventory Control
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Quality
“…the characteristics of a product or service that bear on its ability to satisfy stated or implied needs.”
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25. Quality Management Or Assurance- TQM
Customer Satisfaction
Employee Involvement
Continuous Improvement
Statistical Process Control
Benchmarking
International Quality Standards
ISO 9000
ISO 14000
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26. Outsourcing “…having outside vendors manufacture the actual product.”
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Outsourcing
Manufacturing
Service
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