1. “Introduction to Operations & Competitiveness”

2. What is The Operations? Jobs or tasks consisting of one or more element sor subtasks, performed typically in one location.

3. Definition of 'Operations Management'

4. To design Inputs Output Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization.

5. I.The purchase and storage of raw materials; II.The production and storage of finished goods III.The distribution of finished goods Operations management can be subdivided ;

6. CHALLENGES FOR OPERATIONS MANAGEMENT  Very Rapid Technological Change  Ethical issues  Increasing diversity of the workforce  Environmental impact issues  Economic volatility

7. Duties and Responsibilities of Operation Manager

8. Provide operational support and guidance to staff. Assist in developing operating and capital budgets. Monitor and control expense according to allotted budget. Assist in interviewing, recruiting and training candidates. Manage work assignment and allocation for staff. Conduct performance review and provide performance feedback to staff.

9. Maintain accurate and clear documentation for operational procedures and activities. Work in compliance with company policies and procedures. Ensure team follows standard operating procedures for all operational functions. Conduct regular meetings with team to discuss about issues, concerns, updates etc. Support operational risk and audit process for the purpose of preventive maintenance.

10. What is The Process?

11. Process Issues… Average demand per week Production capacity available Working procedures Storage Space Efficiency/Productivity Payment Systems Quality Stock Control

12. A transformation process can give a failing business new life and can improve the smooth operation of any company.

13. The input-transformation-output model Transformation process InputOutput Goods and services Transformed resources Materials Information Customers Transforming resources Facilities Staff Source: Slack, 2001

15. Production and Operations Systems

16. Throughout the operations process decisions have to be made about the nature of that process.  Planning  What to produce?  Production  How to produce it?  Purchasing  Cost, Quantities, Quality?  Warehousing and storage (including stock control)  Distribution  In-house or oursourced? Each of these interact with other functional areas of the organisation.

17. Historical Events In POM 1.The Industrial Revolution 2.Post-Civil War Period 3.Scientific Management 4.Human Relations and Behaviorism 5.Operations Research 6.The Service Revolution

18. 1. The Industrial Revolution The industrial revolution spread from England to other European countries and to the United States. In 1790 an American, Eli Whitney, developed the concept of interchangeable parts. In the 1800s the development of the gasoline engine and electricity further advanced the revolution. By the mid-1800s, the old cottage system of production had been replaced by the factory system.

19. 2. Post-Civil War Period During the post- Civil War period great expansion of production capacity occurred. By post-Civil War the following developments set the stage for the great production explosion of the 20th century: – Increased capital and production capacity – The expanded urban workforce – New Western US markets – An effective national transportation system

20. 3. Scientific Management Frederick Taylor is father of scientific management. His shop system employed these steps: I.Each worker’s skill, strenght, and learning ability were determined. II.Stopwatch studies were conducted to precisely set Standard output per worker on each task. III.Material specifications, work methods, and routing sequences were used to organize the shop. IV.Supervisors were carefully selected and trained. V.Incentive pay systems were initiated.

21. 4. Human Relations and Behaviorism In the 1927-1932 period, researchers in the Hawthorne Studies realized that human factors were affecting production. From the work of behavioralists came a gradual change in the way managers thought about and treated workers.

22. 5. Operations Research During World War II, enormous quantities of resources had to be deployed. After the war, operations researches found their way back to universities, industry, government, and consulting firms.

23. 6. The Service Revolution The creation of services organizations accelerated sharply after World War II. Today, more than two-thirds of the US workforce is employed in services. Investment per Office worker now exceeds the investment per factory worker.

24. What is The Labor Of Division? A production process in which a worker or group of workers is assigned a specialized task in order to incerease efficiency.

25. Operations Function The operations function brings together raw materials with the production process to make products that customers need. It also shares ideas across the company about how to improve processes or achieve cost savings.

28. Globalization and Competitiveness Globalization is the process of international integration arising from the şnterchange of world views, products, ideas, and other aspects of culture. Competitiveness pertains to the ability and performance of a firm, sub- sector or country to sell and supply goods and services in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the in the same market.

29. Global Competitiveness Businesses must accept the fact that, to prosper, they must view customers, suppliers, facility locations, and competitors in global terms. Forces contributing to increased global competition: – Improved transportation and communication technologies – Loosening of regulations on financial institutions. (until lately) – Increased demand for lower cost, imported services and goods – Reduced import quotas and other trade barriers

30. Important Factors of Competitiveness Product and service design Cost Location Quality Quick response Flexibility Inventory management Supply chain management Service and service quality Managers and workers

31. Competitive priorities Managers must answers four important operations questions: Will you compete on – Cost? Quality? Time? Flexibility? All of the above? Some? Tradeoffs?

32. Competing on cost Typically high volume products Often limit product range & offer little customization May invest in automation to reduce unit costs Can use lower skill labor Probably use product focused layouts For example Lincoln Electiric: reduced cos by $10 million a year for 10 years.(skilled machine operators save the company millons that would have been spent on automated equipment)

33. Competing on quality High performance design: – Superior features, high durability, & excellent customer service Product & service consistency: – Meets design specifications – Close tolerances – Error free delivery For example Ritz-Carlton Hotel-one customer at a time Every employee is empowered to satisfy a guests’s wish Teams at all levels set objectives and devise quality action plans Each hotel has a quality leader Quality reports tracks(guest room preventive maintenance cycles,percentage of check-ins with no waiting,time spent to achive industry-best clean room appearence) Guest preferance reports are recorded in a database

34. Competing on time Fast delivery: – Focused on shorter time between order placement and delivery On-time delivery: – Deliver product exactly when needed every time Rapid development speed – Using concurrent processes to shorten product development time – For example: – Dell:ships custom-built computers in two days – Motorola:needs less than 30 minutes to build to order pagers

35. Competing on flexibility Product flexibility: – Easily switch production from one item to another – Easily customize product/service to meet specific requirements of a customer Volume flexibility: – Ability to ramp production up and down to match market demands For example: Anderson Windows=>number of products offered grew from 28,000 to 86,0000. Number of errors are down to 1 per 200 truckloads Custom Foot Shoe Store: customer’s feet are scanned electronically to capture measurementsç Custom shoes are mailed to the customer’s home in weeks prices are compateble to off-the-shelf shoes.

36. Measures Of Competitiveness  Gross domestic product (GDP)  Import/export ratio  Productivity = output / input

37. Efficiency Economic Efficiency  It refers to the ratio of outputs to input. This means that economic efficency is getting the most output from the least amount of inputs. Organizational Efficiency  It is a ratio of product or service outputs to land, capital or labor inputs.  Efficiency (%) = (Output/Input)*100%

38. Productivity  Productivity is the ratio of outputs to inputs.  It refers to the volume of output produced from a given volume of inputs or resources. Labour productivity  Total output in a given time period / Output per worker = Quantity of labour employed Capital productivity  Total output in a given time period / Output per capital input = Quantity or Value of Capital employed

39. OtherDefinitions Other Definitions… Productivity is the faculty to produce  (Littre, 1883) Productivity (output per hour of work) is the central long-run factor determining any population's average of living  (Thurow, 1993) Productivity is the ability to satisfy the market's need for goods and services with a minimum of total resource consumption  (Moseng and Rolstadas, 2001)

40. Aims of Productivity: - Adopt to technology changes - Improve efficiency - Real cost saving - Benchmarking production process - Living standards

41. Raising the skill level of the workers through training Using more technologically advanced equipment in the production process. Improving the motivation level of the employees By managing the available resource in a more efficient way. Productivity can be improved by: