Introduction to Operations and Competitiveness

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Presentation transcript:

Introduction to Operations and Competitiveness Chapter 1 Introduction to Operations and Competitiveness

The Operations Function Operations as a transformation process Operations as a basic function Operations as the technical core © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 2

Operations As A Transformation Process OUTPUT INPUT Material Machines Labor Management Capital Goods or Services Feedback © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 3

Transformation Processes Physical (manufacturing) Locational (transport/storage) Exchange (retail) Physiological (healthcare) Psychological (entertainment) Informational (communications) © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 4

Operations As A Basic Function MARKETING FINANCE OPERATIONS HRM R & D Accounting Engineering © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 5

Operations As The Technical Core Finance Capital Markets, Stockholders Marketing Customers Workers Suppliers Purchasing Personnel © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 6

Historical Events In POM Industrial Revolution Scientific Management Human Relations Management Science Quality Revolution Information Age Globalization © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 7

Historical Events In POM Ref. Sower, Motwani, & Savoie Industrial Revolution Steam engine 1769 James Watt Division of labor 1776 Adam Smith Interchangeable parts 1790 Eli Whitney Scientific Management Principles 1911 Frederick W. Taylor Time / motion study 1911 Frank & Lillian Gilbreth Activity scheduling chart 1912 Henry Gant © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 8

Russell/Taylor Oper Mgt 3/e Human Relations Hawthorne studies 1930 Elton Mayo Motivation theories 1940s Abraham Maslow 1950s Frederick Hertzberg 1960s Douglas McGregor Management Science Linear programming 1947 George Dantzig Digital computer 1951 Remington Rand Simulation, PERT/CPM, 1960 Research groups Waiting line theory MRP 1960s Joseph Orlicky, IBM © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 9

Russell/Taylor Oper Mgt 3/e Quality Revolution JIT 1970s Taiichi Ohno, Toyota TQM 1980s W. Edwards Deming, Joseph Juran, et. al. Reengineering 1990s Hammer, Champy Information Age EDI, EFT, 1970s Numerous CIM , ERP 1980s individuals and 1990s companies Internet, World Wide Web 1990s Tim Berners-Lee © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 10

Russell/Taylor Oper Mgt 3/e Globalization Worldwide markets 1990s Numerous individuals and operations and companies Supply chain management Electronic commerce Mass customization © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 11

Russell/Taylor Oper Mgt 3/e Competitiveness The degree to which a nation, can, under demanding and rapidly changing market conditions, produce goods and services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens. © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 21

Measures Of Competitiveness Gross domestic product (GDP) Import/export ratio Productivity = output / input © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 22

Productivity Increases When Firms Become more efficient Downsize Expand Retrench Achieve breakthroughs © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 23

Changes in Productivity In The ‘90s © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 2/e Ch 1 - 24

Changes In Input and Output . . © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 25

Issues & Trends In Operations 1. Intense competition 2. Global markets, global sourcing, and global financing 3. Importance of strategy 4. Product variety and mass customization 5. More services © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 29

Issues & Trends In Operations 6. Emphasis on quality 7. Flexibility 8. Advances in technology 9. Worker involvement 10. Environmental and ethical concerns © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 30

Primary Topics In Operations Management Deploying strategy Assuring quality Designing products & services Planning the production process Laying out the facility ©2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 31

Primary Topics In Operations Management Designing jobs & work Managing the supply chain Forecasting demand for products & services Production planning & scheduling © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 32

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