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Chapter 1 Introduction to Operations Management. Production and Operations Management Definition: Managing the activities involved in converting inputs.

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Presentation on theme: "Chapter 1 Introduction to Operations Management. Production and Operations Management Definition: Managing the activities involved in converting inputs."— Presentation transcript:

1 Chapter 1 Introduction to Operations Management

2 Production and Operations Management Definition: Managing the activities involved in converting inputs into outputs raw materials  finished goods labor resource  service

3 Operations Management Issues Forecasting -- sales, staff levels, highway accidents Process Planning -- type, flexibility, product cost/unit, automation Facility Location -- country, region, city, site; important factors Facility Layout -- production & storage areas, flows, parking

4 Operations Management Issues Capacity Planning -- size of facilities, machines, & labor force Production Planning -- product mix & volume, resources required Materials Management Purchasing -- how many suppliers & which ones Logistics -- physical distribution, moving materials Warehousing -- size, location, & layout of storage

5 Operations Management Issues Quality Control -- measuring, monitoring, & improving; SQC Shop Floor Control -- monitoring & controlling progress of jobs Scheduling -- production and employees Inventory Control -- how much & when to order

6 Operations Management Issues Employee Productivity -- measuring & designing tasks; learning rates Project Management -- planning, monitoring, & controlling Maintenance Management -- repairs vs. preventive maintenance

7 Operations Strategic Planning Business Strategy Operations Strategy Facility Location Process Planning Capacity Planning Facility Layout

8 Routine Operations Planning Forecasting Production Planning Materials Management Scheduling -- Purchasing -- Warehousing -- Logistics -- Production -- Employees

9 Operations Control Quality Control Inventory Control Shop Floor Control Maintenance Management Project Management

10 Which POM issues are most important to: -- UTA -- Alcon -- Dallas Area Rapid Transit (DART) -- Cook Children’s Medical Center -- H&R Block


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