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Introduction to Operations and Competitiveness

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Presentation on theme: "Introduction to Operations and Competitiveness"— Presentation transcript:

1 Introduction to Operations and Competitiveness
Chapter 1 Introduction to Operations and Competitiveness

2 The Operations Function
Operations as a transformation process Operations as a basic function Operations as the technical core © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 2

3 Operations As A Transformation Process
OUTPUT INPUT Material Machines Labor Management Capital Goods or Services Feedback © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 3

4 Transformation Processes
Physical (manufacturing) Locational (transport/storage) Exchange (retail) Physiological (healthcare) Psychological (entertainment) Informational (communications) © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 4

5 Operations As A Basic Function
MARKETING FINANCE OPERATIONS HRM R & D Accounting Engineering © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 5

6 Operations As The Technical Core
Finance Capital Markets, Stockholders Marketing Customers Workers Suppliers Purchasing Personnel © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 6

7 Historical Events In POM
Industrial Revolution Scientific Management Human Relations Management Science Quality Revolution Information Age Globalization © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 7

8 Historical Events In POM Ref. Sower, Motwani, & Savoie
Industrial Revolution Steam engine James Watt Division of labor Adam Smith Interchangeable parts 1790 Eli Whitney Scientific Management Principles Frederick W. Taylor Time / motion study Frank & Lillian Gilbreth Activity scheduling chart Henry Gant © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 8

9 Russell/Taylor Oper Mgt 3/e
Human Relations Hawthorne studies Elton Mayo Motivation theories 1940s Abraham Maslow 1950s Frederick Hertzberg 1960s Douglas McGregor Management Science Linear programming George Dantzig Digital computer Remington Rand Simulation, PERT/CPM, Research groups Waiting line theory MRP s Joseph Orlicky, IBM © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch 1 - 9

10 Russell/Taylor Oper Mgt 3/e
Quality Revolution JIT s Taiichi Ohno, Toyota TQM s W. Edwards Deming, Joseph Juran, et. al. Reengineering s Hammer, Champy Information Age EDI, EFT, s Numerous CIM , ERP s individuals and 1990s companies Internet, World Wide Web 1990s Tim Berners-Lee © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

11 Russell/Taylor Oper Mgt 3/e
Globalization Worldwide markets s Numerous individuals and operations and companies Supply chain management Electronic commerce Mass customization © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

12 Russell/Taylor Oper Mgt 3/e
Competitiveness The degree to which a nation, can, under demanding and rapidly changing market conditions, produce goods and services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens. © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

13 Measures Of Competitiveness
Gross domestic product (GDP) Import/export ratio Productivity = output / input © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

14 Productivity Increases When Firms
Become more efficient Downsize Expand Retrench Achieve breakthroughs © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

15 Changes in Productivity In The ‘90s
© 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 2/e Ch

16 Changes In Input and Output
. . © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

17 Issues & Trends In Operations
1. Intense competition 2. Global markets, global sourcing, and global financing 3. Importance of strategy 4. Product variety and mass customization 5. More services © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

18 Issues & Trends In Operations
6. Emphasis on quality 7. Flexibility 8. Advances in technology 9. Worker involvement 10. Environmental and ethical concerns © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

19 Primary Topics In Operations Management
Deploying strategy Assuring quality Designing products & services Planning the production process Laying out the facility ©2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

20 Primary Topics In Operations Management
Designing jobs & work Managing the supply chain Forecasting demand for products & services Production planning & scheduling © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e Ch

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