1. Responsibilities of operations management•
Organizing –
Degree of centralization
Subcontracting
Staffing
Hiring/laying off
Use of Overtime
Directing
Incentive plans
Issuance of work orders
Job assignments
• Budgeting
• Reporting
Capacity •
Planning –
Product and Service
Make or Buy
Location
Layout
Projects
Scheduling
Controlling
Inventory
Quality

2. Operations Managers and decision making•
Tools for Decision Making. –
Pareto (ABC) Analysis
Analysis of Tradeoffs –
Systems Approach
Quantitative Approaches –

3. How do we identify the vital few?
Pareto phenomenon (ABC analysis)
Classifying items, activities, tasks, … according to some measure of importance and allocating efforts and resources accordingly •
A vital few things are important for reaching
an objective or solving a problem. •
80/20 Rule - 80% of problems are caused by
20% of the activities.
How do we identify the vital few?

4. Pareto phenomenon, ABC analysis, Recognition of Priorities
Dealing with the fact that certain aspects of any management situation are more important than others is called recognition of priorities

5. Analysis of tradeoffs
Tradeoffs
What are the pros and cons of models?

6. Analysis of tradeoffs Buying a new machine Additional Investment
Higher Productivity
Better Quality
More Flexibility
Having more inventory
Higher Carrying Costs
More Obsolescence
Better Customer Service

7. “The whole is greater than the sum of the parts.”
Systems approach
“The whole is greater than the sum of the parts.”
Suboptimization
2 > 1+1

8. Systems approach
Systems approach and
Sales
Purchasing
Production

9. Systems
A set of parts with interrelationship between parts organized to achieve a goal
How systems grow up

10. A model is an abstraction of reality.
Models •
A model is an abstraction of reality. –
Physical
Schematic –
Mathematical

11. Quantitative approach•
Linear programming
Transportation model
Inventory models
Waiting line models
Statistical models

12. Recent trends
Global competition
Operations strategy
Flexibility
Cycle time reduction
Business process re-engineering
Supply Chain Management
Workers involvement
Lean Manufacturing
Total quality management

13. Recent trends Global competition Operations strategy Flexibility
Global Market
Global Suppliers
Operations strategy
Quality based
Time based
Flexibility
Variety of products
High Volume as well as low volume
Cycle time reduction
The less time RM, WIP, and FG spend in the Manufacturing and Logistics process products the less opportunity they have to absorb costs

14. Business process re-engineering Supply Chain Management
Recent trends
Business process re-engineering
Value added and NVA activities
Supply Chain Management
Not from RM storage to FG warehouse
From the original suppliers to final consumers
Workers involvement
Workers are not cost they are assets
Lean Manufacturing
Inventory is waste
Total quality management