Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Operations Management The field of management that specializes in the physical production of goods or services and uses quantitative techniques for solving manufacturing problems

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. The Organization as an Operations Management System Products and Facilities Product design Facilities layout Capacity planning Facilities location Structure Reporting relationships Teams Control Processes Inventory management Productivity Quality Operations Management Inputs Raw materials Human resources Land, buildings Information Technology Inputs Raw materials Human resources Land, buildings Information Technology Outputs Products Services Outputs Products Services Operations Strategy The Technical Core Feedback

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Manufacturing and Service Organizations Source: Based on Richard L. Daft, Organization Theory and Design (Cincinnati, OH: South-Western College Publishing, 1998), 130; and Byron J. Finch and Richard L. Luebbe, Operations Management (Fort Worth, Texas: The Dryden Press, 1995), 50.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Operational Concerns for Manufacturing and Service Organizations Scheduling Must obtain materials and supplies Both must be concerned with quality and productivity

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Stages of Operations Strategy Stage 4 Initiates Competitive Advantage Advanced capabilities developed and significant input to strategic process provided Concerns: New products New services New technologies International Stage 3 Organizationally Supportive Organization’s competitive strategy closely followed and supported Concerns: Advanced process technologies New plants What to make for the United States Stage 2 Industry Current Goals set according to industry practice Concerns: Capital investment Quality control Inventory management Capacity Stage 1 No Involvement No positive contribution to strategy formulation Concerns: Cost Labor efficiency Source: Based on R.H. Hayes and S.C. Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: Wiley, 1984).

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Winning Customers How? –Better price –Quality –Performance –Delivery –Responsiveness to customer demand

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Design for Manufacturability and Assembly DFMA May require; –Restructuring operations –Creating teams of designers and manufacturers

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Product Design Objectives 1 Produce ability Cost Quality Reliability 2 3 4

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Service Design Objectives 1 Produce ability Cost Quality Reliability TIMING 5

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Layout Types Process Product Cellular Fixed-position

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Revolutionizing Manufacturing Flexible Manufacturing Systems, the use of productions lines that can be adapted to produce more than one kind of product. CAD/CAM: –CAD, computer aided design –CAM, computer aided manufacturing

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Inventory Management Finished goods inventory Work in process inventory Raw materials inventory

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Techniques for Inventory Management Economic order quantity Material requirements planning JIT inventory systems Distribution management

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. Looking to Improve Productivity 1.Technological productivity 2.Worker productivity 3.Managerial productivity The Baldrige Award, quality and productivity, achieving its goals.

Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. MRP Dependent demand inventory planning and control system Schedules exact materials required Is computer based Based on precise estimates of future needs for production