Download presentation
Presentation is loading. Please wait.
1
PRODUCTION/OPERATIONS MANAGEMENT
SIXTH EDITION WILLIAM J. STEVENSON Rochester Institute of Technology Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
2
INTRODUCTION PART ONE Chapter One Production and Operations Management
Chapter Two Productivity, Competitiveness, and Strategy Irwin/McGraw-Hill The McGraw-Hill Companies, Inc., 1999
3
Operations Management
Operations function consists of all activities directly related to producing goods or providing services. Organization Finance Production/ Operations Marketing
4
Business Operations Overlap
Marketing Production/ Operations Finance
5
Types of Operations Operations Examples Goods Producing
Farming, mining, construction , manufacturing, power generation Storage/Transportation Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines Exchange Retailing, wholesaling, banking, renting, leasing, library, loans Entertainment Films, radio and television, concerts, recording Communication Newspapers, radio and television newscasts, telephone, satellites
6
Value-Added Value added • The difference between the cost of inputs
and the value or price of outputs. Value added Inputs Outputs Transformation/ Land Goods Conversion Labor Services process Capital Feedback Control Feedback Feedback
7
Food Processor Inputs Processing Outputs Raw Vegetables Cleaning
Canned vegetables Metal Sheets Making cans Water Cutting Energy Cooking Labor Packing Building Labeling Equipment
8
Hospital Process Inputs Processing Outputs Doctors, nurses Examination
Healthy patients Hospital Surgery Medical Supplies Monitoring Equipment Medication Laboratories Therapy
9
Operations Interfaces
10
Decision Making System Design • – capacity location
arrangement of departments product and service planning acquisition and placement of equipment
11
Decision Making System operation • – personnel inventory scheduling
project management quality assurance
12
Major Characteristics of
Production Systems • Degree of standardization Type of operation – project job shop repetitive production continuous processing
13
Manufacturing or Service?
Tangible Act
14
These differences are beginning to fade in many cases
Key Differences • Customer contact Uniformity of input Labor content Uniformity of output Measurement of productivity Quality assurance These differences are beginning to fade in many cases
15
Manufacturing vs Service
Characteristic Manufacturing Service Output Tangible Low High Easy Intangible High Low Difficult Customer contact Uniformity of input Labor content Uniformity of output Measurement of productivity Opportunity to correct quality problems High
16
Operations Management
Responsibilities of Operations Management • Planning – Capacity Location Make or buy Layout Projects Scheduling Controlling Inventory Quality • Organizing – Degree of centralization – Subcontracting Products and services • Staffing – Hiring/laying off – Use of Overtime • Directing – Incentive plans – Issuance of work orders – Job assignments
17
Tradeoffs Models A model is an abstraction of reality.
• A model is an abstraction of reality. – Physical Schematic Tradeoffs – Mathematical What are the pros and cons of models?
18
“The whole is greater than the sum of the parts.”
Systems Approach “The whole is greater than the sum of the parts.” Suboptimization
19
Quantitative Approaches
• Linear programming Queuing Techniques Inventory models Project models Statistical models
20
How do we identify the vital few?
Pareto Phenomenon • 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?
21
Recent Trends • Global competition Operations strategy Total quality management (TQM) Flexibility Time reduction Technology
22
Recent Trends (Continued)
• Worker involvement Reengineering Environmental issues Service
Similar presentations
