Review of Week#2 ( Operations and Productivity 作業與生產力 Chapter 1 Review of Week#2 ( Chapter 1 復習 ) Operations and Productivity 作業與生產力 Chapter 1

Outline ( 大綱 )  PROFILE: HARD ROCK CAFE  WHAT IS OPERATIONS MANAGEMENT? 什麼是作業管理 ? ORGANIZING TO PRODUCE GOODS AND SERVICES 生産商品與服務  WHY STUDY OM? 爲何要學習作業管理  WHAT OPERATIONS MANAGERS DO 作業管理人員的工作內容  How This Book Is Organized ( 本書的組織 )  WHERE ARE THE OM JOBS? 作業管理的演進

Outline - Continued  THE HERITAGE OF OPERATIONS MANAGEMENT  OPERATIONS IN THE SERVICE SECTOR 服務領域的作業  Differences between Goods and Services  Growth of Services  Service Pay  EXCITING NEW TRENDS IN OPERATIONS MANAGEMENT 作業管理的新趨勢

Outline - Continued  THE PRODUCTIVITY CHALLENGE 提升生産能力的挑戰  Productivity Measurement  Productivity Variables  Productivity and the Service Sector  THE CHALLENGE OF SOCIAL RESPONSIBILITY 社會的責任的挑戰

What Is Operations Management? Production ( 生産 ) is the creation of goods andservices( 創作物品和服務 ) Operations management ( 作業與管理 )is the set of activities that creates value in the form of goods and services by transforming inputs into outputs ( 這設置活動創造價值以的形式物品和服務由變換 輸入入產品 )

Organizing to Produce Goods and Services( 生産商品與服務 )  Essential functions:  Marketing( 行銷 ) – generates demand  Operations( 生産 / 作業 ) –creates the product  Finance/accounting ( 財務 / 會計 ) – tracks organizational performance, pays bills, collects money

Organizational Functions  Marketing ( 行銷 )  Gets customers  Operations ( 生産 / 作業 )  creates product or service  Finance/Accounting ( 財務 / 會計 )  Obtains funds  Tracks money © 1995 Corel Corp.

Why Study OM?  OM is one of three major functions ( marketing, finance, and operations ) of any organization.  We want ( and need ) to know how goods and services are produced.  We want to understand what operations managers do.  OM is such a costly part of an organization.

What Operations Managers Do Plan - Organize - Staff - Lead - Control

The Critical Decisions  Quality management  Who is responsible for quality?  How do we define quality?  Service and product design  What product or service should we offer?  How should we design these products and services?

The Critical Decisions - Continued  Process and capacity design  What processes will these products require and in what order?  What equipment and technology is necessary for these processes?  Location  Where should we put the facility  On what criteria should we base this location decision?

The Critical Decisions - Continued  Layout design  How should we arrange the facility?  How large a facility is required?  Human resources and job design  How do we provide a reasonable work environment?  How much can we expect our employees to produce?

The Critical Decisions - Continued  Supply chain management  Should we make or buy this item?  Who are our good suppliers and how many should we have?  Inventory, material requirements planning,  How much inventory of each item should we have?  When do we re-order?

The Critical Decisions - Continued  Intermediate, short term, and project scheduling  Is subcontracting production a good idea?  Are we better off keeping people on the payroll during slowdowns?  Maintenance  Who is responsible for maintenance?  When do we do maintenance?

New Challenges in OM  Local or national focus  Batch shipments  Low bid purchasing  Lengthy product development  Standard products  Job specialization  Global focus  Just-in-time  Supply chain partnering  Rapid product development, alliances  Mass customization  Empowered employees, teams FromTo From To pp. 16

Goods Versus Services  Can be resold  Can be inventoried  Some aspects of quality measurable  Selling is distinct from production  Reselling unusual  Difficult to inventory  Quality difficult to measure  Selling is part of service GoodsService Goods Service pp. 12

Goods Versus Services - Continued  Product is transportable  Site of facility important for cost  Often easy to automate  Revenue generated primarily from tangible product  Provider, not product is transportable  Site of facility important for customer contact  Often difficult to automate  Revenue generated primarily from intangible service. GoodsService Goods Service pp. 12

Exciting New Challenges in Operations Management 作業管理的新趨勢 pp

Changing Challenges for the Operations Manager pp. 15

Changing Challenges for the Operations Manager

The Productivity Challenge 提升生産力的挑戰

The Economic System Transforms Inputs to Outputs The economic system transforms inputs to outputs at about an annual 2.5% increase in productivity (capital 38% of 2.5%), labor (10% of 2.5%), management (52% of 2.5%) Land, Labor, Capital, Management Goods and Services Feedback loop InputsProcessOutputs pp. 17

 Measure of process improvement  Represents output relative to input  Only through productivity increases can our standard of living improve Productivity ( 生産力衡量 ) ProductivityProductivity Units produced Input used == pp. 19

Multi-Product Productivity Productivity = Output Labor + material + energy + capital + miscellaneous pp. 19

Measurement Problems 生産力變數  Quality ( 品質 )may change while the quantity of inputs and outputs remains constant  External elements ( 外部因素 )may cause an increase or decrease in productivity  Precise units ( 衡量的精確性 )of measure may be lacking pp. 20

Productivity Variables ( 生産力 )  Labor( 勞工 ) - contributes about 10% of the annual increase  Capital ( 資金 )- contributes about 32% of the annual increase  Management ( 管理 )- contributes about 52% of the annual increase pp. 21