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Copyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved.

2. Operations Management
The field of management that specializes in the physical production of goods or services and uses quantitative techniques for solving manufacturing problems

3. The Organization as an Operations Management System
Feedback
Operations Strategy
Operations Management
Inputs
Raw materials
Human resources
Land, buildings
Information
Technology
Outputs
Products
Services
Products and Facilities
Product design
Facilities layout
Capacity planning
Facilities location
Structure
Reporting relationships
Teams
Control Processes
Inventory management
Productivity
Quality
The Technical Core

4. 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.

5. Operational Concerns for Manufacturing and Service Organizations
Scheduling
Must obtain materials and supplies
Both must be concerned with quality and productivity

6. Stages of Operations Strategy
No Involvement
No positive contribution to strategy formulation
Concerns:
Cost
Labor efficiency
Stage 2
Industry Current
Goals set according to industry practice
Concerns:
Capital investment
Quality control
Inventory management
Capacity
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 4
Initiates Competitive Advantage
Advanced capabilities developed and significant input to strategic process provided
Concerns:
New products
New services
New technologies
International
Source: Based on R.H. Hayes and S.C. Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: Wiley, 1984).

7. Winning Customers How? Better price Quality Performance Delivery
Responsiveness to customer demand

8. Design for Manufacturability and Assembly DFMA
May require;
Restructuring operations
Creating teams of designers and manufacturers

9. Product Design Objectives
Produce ability 1
Cost 2
Quality 3
Reliability 4

10. Service Design Objectives
Produce ability 1
Cost 2
Quality 3
Reliability 4
TIMING 5

11. Layout Types
Process
Product
Cellular
Fixed-position

12. 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

13. Inventory Management Finished goods inventory
Work in process inventory
Raw materials inventory

14. Techniques for Inventory Management
Economic order quantity
Material requirements planning
JIT inventory systems
Distribution management

15. Looking to Improve Productivity
Technological productivity
Worker productivity
Managerial productivity
The Baldrige Award, quality and productivity, achieving its goals.

16. MRP Dependent demand inventory planning and control system
Schedules exact materials required
Is computer based
Based on precise estimates of future needs for production