Chp # 1

Views:
 
Category: Education
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

Introduction to Operations Management :

Introduction to Operations Management

Vocabulary:

Vocabulary Process An activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides one or more outputs for its customers External Customers A customer who is either an end user or an intermediary

PowerPoint Presentation:

Internal customers One or more other employees who rely on inputs from earlier processes in order to perform processes in the next office, shop, or department Nested process A process within a process Operations management The direction and control of the processes that transform inputs into products and services

PowerPoint Presentation:

Productivity The value of outputs (goods and services) produced divided by the values of input resources (wages, costs of equipment, and the like)

Processes and Operations:

Processes and Operations

Processes and Operations:

Processes and Operations Inputs Workers Managers Equipment Facilities Materials Services Land Energy Figure 1.1

Processes and Operations:

Processes and Operations Processes and operations 5 1 2 3 4 Inputs Workers Managers Equipment Facilities Materials Services Land Energy Figure 1.1

Processes and Operations:

Processes and Operations Internal and external customers Processes and operations 5 1 2 3 4 Inputs Workers Managers Equipment Facilities Materials Services Land Energy Figure 1.1

Processes and Operations:

Processes and Operations Outputs Services Goods Processes and operations 5 1 2 3 4 Inputs Workers Managers Equipment Facilities Materials Services Land Energy Figure 1.1 Internal and external customers

Processes and Operations:

Processes and Operations Outputs Services Goods Internal and external customers Information on performance Processes and operations 5 1 2 3 4 Inputs Workers Managers Equipment Facilities Materials Services Land Energy Figure 1.1

Nested Processes at Chase Manhattan Bank:

Nested Processes at Chase Manhattan Bank

Nested Processes at Chase Manhattan Bank:

Nested Processes at Chase Manhattan Bank Figure 1.2 BANK Operations Retail Products Wholesale Maintain cards Research problems Site analysis Others Process deposits Cash checks Safe deposit boxes Others Loan documentation Review credit standing Obtain manager approval Others Prepare reports Attend meetings Input funds deals Others ATM support Customer transactions Service quality Others Teller line transactions Track branch sales ATM hotline Others Credit applications Manage retail products Originate lease portfolio Others Fund management Market making spot Dealer support Others Cash Management Loan operations Trading operations Others Distribution Compliance Finance Human resources Auto Finance Cards Mortgages Others Trading Loan administration Leasing Others

Types of OM Decisions:

Types of OM Decisions Strategic choices Process Quality Capacity, Location, Layout Operating Decisions

Strategic choices :

Strategic choices Operations managers help to determine Company’s future direction and competitive priorities How best to design processes that fit with its competitive priorities

Process :

Process Operations managers make process decisions about Type of work done in-house The amount of automation to be used Method of improving existing process How to manage process for one time project The technology to be pursued

Quality:

Quality Operations managers Set quality objectives Seek ways to improve the quality of firms product or services Use of inspection and statistical methods to monitor the quality of products and services

Capacity, Location, and Layout :

Capacity, Location, and Layout Operations managers Determine the system’s capacity The location of new facilities including global operations Organization of departments and a facility’s physical layout

Operating Decisions:

Operating Decisions These decisions include Coordination of various parts of internal and external supply chain Forecasting demand Managing inventory Whether to implement Just-in-time technique Making schedule

Operations Management as a Function:

Operations Management as a Function Manufacturing Construction Transportation Health care Wholesale Retailing Bank Government • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- Types of Organizations • Accounting • Distribution • Engineering • Operations • Finance • Human resources • Marketing Functions Figure 1.3

Operations Management As a Function:

Operations Management As a Function Manufacturing Construction Transportation Health care Wholesale Retailing Bank Government • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- Types of Organizations Skill Areas Quantitative methods Organizational behavior General management Information systems Economics International business Business ethics and law Figure 1.3

Why Study Operations Management?:

Why Study Operations Management? Operations Marketing

Why Study Operations Management?:

Why Study Operations Management? Many career opportunities in the field of operations management. Among the numerous job titles are operations manager, production analyst, production manager, schedule coordinator, quality manager.

Historical Evolution of Operations Management :

Historical Evolution of Operations Management The Industrial Revolution Scientific Management The Human Relation Movement Decision Models and Management Science The Influence of Japanese Manufacturer

The Industrial Revolution :

The Industrial Revolution IR began in the 1770s in England Production was dominated by craft system where highly skilled workers use simple, flexible tools to produce small quantities of customized goods. In 18 th century, production system was changed due to number innovation. Steam engine, spinning jenny, power loom

Scientific Management :

Scientific Management F W Taylor is the father of scientific management. He advocated management should be responsible for planning, carefully selecting and training workers, finding best way to perform jobs, separating management activities from work activities He emphasized maximum output. Frank Gilbreth developed motion study Henry Gantt developed Gantt Charts Henry Ford introduced mass production and division of labor in automobile industry.

The Human Relation Movement :

The Human Relation Movement Lillian Gilbreth worked on the human motivation in 1920. Elton Mayo, 1930, conducted studies at the Hawthorne Division of Western Electric Company Abraham Maslow developed motivation theories in 1940. Douglas McGregor added Theory X and Theory Y in 1960. William Ouchi added Z Theory in 1970.

Decision Model and Management Science :

Decision Model and Management Science F W Harris developed first mathematical model for inventory management in 1915 HF Dodge, HG Romig, and W. Shewhart developed statistical procedures for sampling and quality control in 1935 Management science bloomed during second world war During 1970 and 1960, management science techniques were highly regarded …

The Influence of Japanese Manufacturer :

The Influence of Japanese Manufacturer TQM Just-in-time system

Trends in Business :

Trends in Business The internet, e-commerce, e-business Management of Technology Management of Supply Chain Outsourcing Globalization Agility Ethical Behavior, Workforce Diversity, Environmental Concern

Other Trends :

Other Trends Operations Strategy Working with fewer resources Revenue management Process analysis and improvement, and quality improvement Increased regulation and product liability issues Lean production

The internet, e-commerce, e-business :

The internet, e-commerce, e-business Internet offers great potential for business organization. It is altering the way of doing business. E-business – use of internet to transact business. E-commerce – consumer to business transaction such as buying online, requesting information. Business to business transaction like e-procurement is becoming popular.

Management of Technology :

Management of Technology Technology is the application of scientific discoveries to the development and improvement of goods and services. Operations management is concerned with three technologies

Management of Technology :

Management of Technology Product and service technology refers to the discovery and development of new products and services. This is done mainly by engineers and researchers. Process technology refers to method, procedures, and equipment used to produce goods and services. Information technology is the use of computer to store, process and send information.

Management of Supply Chain :

Management of Supply Chain Supply chain is the sequence of activities and organizations involved in producing goods and services. Facilities include warehouse, factories, processing center, office, distribution center, and retail outlet.

Outsourcing :

Outsourcing Obtaining product or service from outside of the organization. It has become a challenging issues for politicians, labor organization, and operations managers.

Globalization:

Globalization Globalization is making the scope of supply chain management broader. Tighten border security sometime slows the movement of people and goods.

Agility :

Agility The ability of an organization to respond quickly to demands or opportunities. Flexible system can quickly respond changes of demand Shorter product life cycle and shorter development time are important

Ethical Behavior, Workforce Diversity, Environmental Concern :

Ethical Behavior, Workforce Diversity, Environmental Concern

Productivity:

Productivity Productivity = Output Input

Productivity:

Productivity Multifactor productivity = Quantity at standard cost Labor cost + Materials cost + Overhead cost Example 1.1b

Problem # 1:

Problem # 1 Calculate the productivity for the following operations: Three employees process 600 insurance policies in a week. They work 8 hours per day, 5 days per week. A team of workers make 400 units of products, which is valued by its standard costs of $ 10 each ( before markups for other expenses and profit). The accounting department reports that for this job the actual costs are $ 400 for labor, $ 1000 for materials, and $ 300 for overhead .

Problem # 2:

Problem # 2 Student tuition at South hill University is $ 100 per semester credit hour. The state supplements school revenue by matching students tuition, dollar to dollar. Average class size for a typical three credit hour is 50 students. Labor cost is $ 4000 per class, material costs are $ 20 per student per class, and overhead costs are $ 25000 per class. What is the multifactor productivity ratio? If instructors work an average of 14 hours per week for 16 week for each three credit class of 50 students, what is the labor productivity ratio?

Problem # 3:

Problem # 3 Compute the multifactor productivity measure for each of the week shown. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $ 12 . Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. Week Output ( units) Workers Materials ( lbs) 1 30,000 6 450 2 33,600 7 470 3 32,200 7 460 4 35,400 8 480

authorStream Live Help