Copyright ©2015 Pearson Education, Inc.15-1 Chapter 15 Operations Management

Learning Outcomes Define operations management and explain its role. Define the nature and purpose of value chain management. Describe how value chain management is done. Discuss contemporary issues in managing operations. Copyright ©2015 Pearson Education, Inc.15-2

Copyright ©2015 Pearson Education, Inc Define operations management and explain its role.

Improving Productivity Copyright ©2015 Pearson Education, Inc.15-4

Service Firms vs. Manufacturing Firms Manufacturing firms produce physical goods, such as cars or food products Service firms produce nonphysical outputs in the form of services, such as medical and transportation services Copyright ©2015 Pearson Education, Inc.15-5

Improving Productivity Copyright ©2015 Pearson Education, Inc.15-6

Deming: Improving Mangers’ Productivity Copyright ©2015 Pearson Education, Inc.15-7 The truly effective organization will increase productivity by successfully integrating people into the overall operations system.

Operations Management and Company Strategy Copyright ©2015 Pearson Education, Inc.15-8 Successful organizations recognize the crucial role that operations management plays as part of the overall organizational strategy to achieve and maintain global leadership.

Copyright ©2015 Pearson Education, Inc Define the nature and purpose of value chain management.

Value Chain Management Copyright ©2015 Pearson Education, Inc.15-10

Value Chain Copyright ©2015 Pearson Education, Inc.15-11

Goals of Value Chain Management Copyright ©2015 Pearson Education, Inc.15-12

Benefits of Value Chain Analysis Copyright ©2015 Pearson Education, Inc.15-13

Copyright ©2015 Pearson Education, Inc Describe how value chain management is done.

The Value Chain Management Process Copyright ©2015 Pearson Education, Inc The dynamic, competitive environment facing contemporary global organizations demands new solutions.

Successful Value Chain Management Copyright ©2015 Pearson Education, Inc.15-16

Organizational Processes and Leadership Copyright ©2015 Pearson Education, Inc Better demand forecasting 2.Select functions done collaboratively with other partners in the chain 3.New measures needed for evaluating the performance of various activities along the chain

Employees and Human Resources Copyright ©2015 Pearson Education, Inc Flexible job design Effective hiring process Ongoing training

Obstacles to Value Chain Management Copyright ©2015 Pearson Education, Inc.15-19

Impact of Cultural Attitudes Copyright ©2015 Pearson Education, Inc Trust Control

Capabilities and People Copyright ©2015 Pearson Education, Inc Capabilities: Coordination and collaboration Configuration that satisfies customers and suppliers Education of internal and external partners People: Commitment Time Energy

Copyright ©2015 Pearson Education, Inc Discuss contemporary issues in managing operations.

Contemporary Issues Copyright ©2015 Pearson Education, Inc Technology 2.Quality initiatives 3.Project management

Quality Control Copyright ©2015 Pearson Education, Inc.15-24

Quality Goals Copyright ©2015 Pearson Education, Inc ISO Six Sigma

Project Management Copyright ©2015 Pearson Education, Inc The task of getting project activities done on time, within budget, and according to specifications.

Gantt Charts Copyright ©2015 Pearson Education, Inc.15-27

Load Charts Copyright ©2015 Pearson Education, Inc.15-28

PERT Network Analysis Copyright ©2015 Pearson Education, Inc.15-29

PERT in Action Copyright ©2015 Pearson Education, Inc.15-30

PERT in Action (cont.) Copyright ©2015 Pearson Education, Inc.15-31

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