M1. INTRO-OPN MANGT

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

PowerPoint Presentation:

1 Introduction to Operations Management

PowerPoint Presentation:

What is production? 2

PowerPoint Presentation:

3 What is a product?

PowerPoint Presentation:

4 Satisfies someone's need Some one is willing to buy!

PowerPoint Presentation:

Product is a result of a process, a set of activities which creates a sellable output Such a process is called production Production is a process and product is the result 5

PowerPoint Presentation:

9/3/2012 6 Types of Products Tangible/Intangible Consumer /Industrial Consumer durable & Non-durable Discrete/Continuous Standard/Customized

PowerPoint Presentation:

7

PowerPoint Presentation:

8

PowerPoint Presentation:

9

PowerPoint Presentation:

10

PowerPoint Presentation:

Products and services Expanded concept of product and activity that creates it - operation Factory and facility 11

PowerPoint Presentation:

9/3/2012 12 When does someone buy a product? Need experience and satisfaction C hoice of a particular product from variety? Concept of value How can we create value [function/cost]? Can we define operation now?

PowerPoint Presentation:

VA/NVA Value is created by value adding activities Wastes are created by non-value adding activities 13

PowerPoint Presentation:

14

PowerPoint Presentation:

What activities add value? (Such activities are operations) Alter physical state-water to ice Alter form-blacksmith Alter chemical composition-chemical products Alter metallurgical condition-alloys 15

PowerPoint Presentation:

16 Store, preserve-refrigerate deep freeze Impart knowledge-teach, train, give information Give advice-medical advice, legal opinion Give medical treatment Transport – mangoes from Ratnagiri to Mumbai

PowerPoint Presentation:

What is the result of such activities? 17

PowerPoint Presentation:

Result of operations (value adding activities) is a product which may be tangible or intangible Product or service Why do customers buy a product? Every product is finally a service! 18

PowerPoint Presentation:

19 What is core service? Products meeting QCD expectations of customer What is Value added service? Help external customers use the core service effectively Help internal customers perform effectively

PowerPoint Presentation:

20 1. Information on product and product performance-safety, cost etc. 2. Problem solving-product support, workers visiting customers works to learn product performance for C/CA/PA 3. Sales support- technology demonstration 4. Field support-parts replacement, stock replenishment

Product Vs Service:

21 Product Vs Service Result of a process Tangible Inventoriable Customer is away, product is to be delivered to the customer A process itself Intangible Non inventoriable Customer is on the shop floor and involved in creation of service

PowerPoint Presentation:

22 What is management? Important features of management Facilitation Resource allocation Accountability Review – PDCA Efficiency & Effectiveness Visualization & Planning

PowerPoint Presentation:

23 What is Operations Management? A function of Corporate Management

PowerPoint Presentation:

24

PowerPoint Presentation:

What is a function? 25

PowerPoint Presentation:

Function is a set of goal focused activities Goals are subsets of corporate objectives Corporate objectives are aimed at customer satisfaction customer satisfaction is the result of meeting customer’s expectations 26

PowerPoint Presentation:

27 What are customer’s expectations?

PowerPoint Presentation:

28 QCD of the product How are they fulfilled? P,Q,C,D,E,F,S,H,E, the Objectives of Operations Management

PowerPoint Presentation:

29 Definition of Operations Management Design, operation and improvement of systems that create and deliver the firms primary products and services O/M is a function of general management O/M is a line function

PowerPoint Presentation:

O/M uses tools of OR (Operations Research), MS (Method Study) & IE (Industrial Engineering), hence closely associated with these functions 30

PowerPoint Presentation:

9/3/2012 31 Functions of production management Planning Product-selection, design, development Location, layout Capacity planning Production planning

PowerPoint Presentation:

Organizing Work-study Staffing Materials management 32

PowerPoint Presentation:

9/3/2012 33 Controlling Stores management Value analysis Quality control Maintenance management Inventory management

PowerPoint Presentation:

34 Operations Management Objectives Performance Objectives Efficiency & Effectiveness Quality Lead times Capacity utilization Flexibility

PowerPoint Presentation:

35 Cost Objectives Explicit [visible] costs: material, labor, scrap, rework, maintenance Implicit [invisible]costs: inventory, stock-outs, shortages, delayed deliveries, mat.handling, inspection, grievances, dissatisfaction, opportunity

PowerPoint Presentation:

36 Importance of Operations Management Important part of Business education Central to every business activity Knowledge of issues in the field is critical in manufacturing or service, private or public 2. Government is moving towards customer service models

PowerPoint Presentation:

‘Reinventing Government’ in the US -1990 (David Osborne and Ted Gaebler-1992 book Reinventing Government) It applies the customer service model to government and the PSUs 37

PowerPoint Presentation:

In India many of the PSUs are either getting privatized or following the customer service model as in the US Customer sensitiveness Productivity orientation Importance of conservation Process focus for result 38

PowerPoint Presentation:

39 This approach focuses on results and promotes competition inside and outside government ‘Reinventing Government’ initiatives draw from the concepts of Supply Chain Management, TQM, BPR and JIT delivery, concepts that fall under OM umbrella

PowerPoint Presentation:

40 3. Operations Management provides a systematic way of looking at organizational processes Analytical approach to a situation Problem solving Respect for standards

PowerPoint Presentation:

41 4. O/M presents interesting carrier opportunities Line positions-direct supervision of operations Staff positions-Supply Chain Management, Quality Assurance Consulting opportunities-BPR, ERP, JIT, TQM

PowerPoint Presentation:

42 5. Concepts and tools of O/M are used in all functions of management Quality Control (prevention of defectives) Productivity improvement(resource utilization) Internal customer concept, who is customer?

PowerPoint Presentation:

43 6. Competitive edge through O/M to business and to management professionals Huge potential to boost the productivity of the process, offer products at lower cost and high quality Meeting the ‘QCD’ expectations of the customers with improved flexibility

PowerPoint Presentation:

44 History of Operations Management Concept of O/M - an evolution: House hold trades to factories as investment opportunities

PowerPoint Presentation:

45 1910s Frederic Taylor Principles of scientific management Concept of productivity, time study Frank and Lillian Gilbreth Motion study

PowerPoint Presentation:

46 Henry Ford and Henry Gantt Moving assembly line and activity scheduling, Gantt Chart F.W. Harris Inventory Control, concept of EOQ

PowerPoint Presentation:

47 1930s Walter Shewhart & H.F. Dodge and H.G. Romig Quality control, sampling inspection & statistical tables for quality control Elton Mayo & L.H.C. Tippet Hawthorne studies of worker motivation

PowerPoint Presentation:

48 1940 George B. Dantzig Simplex method of linear programming to solve complex multidisciplinary problems

PowerPoint Presentation:

49 1950s -1960s Many researchers in US & Western Europe Extensive development of OR tools like simulation, waiting line theory, decision theory, mathematical programming, PERT & CPM

PowerPoint Presentation:

50 1970 Many computer manufacturers lead by IBM in US Wide spread use of computers in business for production scheduling, inventory control, forecasting, project management, MRP Mc Donald's restaurants in US Service Quality and Productivity, mass production in service sector

PowerPoint Presentation:

51 1980 Harvard Business School Faculty Manufacturing as a competitive weapon Tai-ichi Uhno of Toyota Motors, D E Deming & J E Juran Kanban, Pokayoke, CIM, FMS, CAD/CAM, robots etc.

PowerPoint Presentation:

52 Eliyahu M. Goldratt Synchronous manufacturing-Lean principles to variety production, Theory Of Constraints: bottleneck analysis-methodology for solving problems, goal-performance-constraints

PowerPoint Presentation:

53 1990 National Institute of Standards and Technology, American Society of Quality Control and International Organization for Standardization

PowerPoint Presentation:

54 Total Quality Management, Balridge quality award, ISO 9000, Quality Functional Deployment, value engineering and concurrent engineering-modern approach to product development Michael Hammer and other major consulting firms Business Process Re-engineering

PowerPoint Presentation:

55 US government, Netscape Communication Corporation and Microsoft Corporation SAP (Germany), Oracle (US) ERP Council of Logistics Management, Council of Supply Chain Management Supply chain management, 2000 Amazon, eBay, American Online, Yahoo E-commerce, Internet, World Wide Web

PowerPoint Presentation:

56 What is Operations Strategy? Evaluating most Cost effective methodology of producing goods while achieving desired Quality and Delivery objectives

PowerPoint Presentation:

A planning process to organize the resources to fulfill the long term objectives of operations, which are focused on organizational objectives Organizational objectives are dynamic as they are competitive - post war US and Japan Objectives are flexible to meet changing expectations of customers 57

PowerPoint Presentation:

58 Operations strategy is a process by which key operations decisions are made that are consistent with overall strategic objectives of the firm Operations Strategy leads to operational excellence

PowerPoint Presentation:

59 What are operational decisions? Decisions are at the core of a strategy. Operational Decisions are the strategic options selected by the organization. Product & Process Product portfolio- products, product line, extent of customization Product design

PowerPoint Presentation:

Process design Technology selection Capacity planning Inventory decisions 60

PowerPoint Presentation:

61 Infrastructure Plant and equipment Process location Planning systems, MRP? DRP? ERP? Control systems, Manual? Automatic? Computerized? Quality assurance and control Work payment structure Organization of Operations function

PowerPoint Presentation:

62 Relevance of Operations Strategy 1.Changing expectations of customers due to the competitive dynamics 2. Need for a cost effective plan to respond to these changes 3. Need for adaptation to competitive priorities, Quality? Cost? Delivery?

PowerPoint Presentation:

Competitive pressure on price line, lead time and quality 5. Challenges of modern business- pushes and pulls, customers, suppliers, investors, workers, government, NGOs 63

PowerPoint Presentation:

64 COMPETITIVE DIMENTIONS IN OPERATIONS STRATEGY ‘Make it cheap’- cost reduction, post war demand for volumes ‘Make it good’- quality and reliability as a dimension, competition from Japanese products ‘Make it quick’- lead time reduction ‘Deliver it when promised’-OTD

PowerPoint Presentation:

65 ‘Change its volume’-Meeting rising demand and scaling down ‘Change it’-new product introduction ‘Support it’-competitive dimensions related to service

PowerPoint Presentation:

66 COMPETITIVE ADVANTAGE Competitive Advantage creates value for the customer Firm’s profit exceeds the competition average Cost advantages-core service is delivered at lower cost Differentiation advantage (service advantage) -benefits delivered are superior

PowerPoint Presentation:

67 Resources Distinctive Competencies Cost Advantage or Differentiation Advantage Value Creation Capabilities

PowerPoint Presentation:

68 Resources Firm’s resources and capabilities are to be superior to competition- Without this superiority, any advantage quickly would disappear Patents and trademarks Proprietary know-how Installed customer base Reputation of the firm

PowerPoint Presentation:

Brand equity-is the value that customers PERCEIVE in a brand. It is measured based on how much trust a customer has in the brand. 69

PowerPoint Presentation:

70 Capabilities Firm's ability to utilize its resources effectively Aspects that are difficult to document Embedded strengths of the company

PowerPoint Presentation:

Distinctive Competencies The firm's resources and capabilities together form its distinctive competencies competencies enable innovation, efficiency, quality, and customer responsiveness, all of which can be leveraged to create a cost advantage or a differentiation advantage. 71

PowerPoint Presentation:

72 TIME BASED COMPETITION Business organizations seek competitive advantage to attract customers Focus of the competition changed with time post war focus in the US was cost (concept of 'make it cheap') Japanese introduced quality focus in 1980s (concept of 'make it better')

PowerPoint Presentation:

As the cost and quality become qualifiers in competitive business. Now focus comes on time. (concept of 'make it quick') 73

PowerPoint Presentation:

74 Classical ILO approach to work talks about work content and ineffective time TBC as an initiative puts the focus on NVA elimination/reduction As the NVAs shrink changes occur in O/S Productivity goes up, Output rises, Business prospers

PowerPoint Presentation:

Satisfying 'D' expectation became the winner characteristic in competitive business Lead-time came under the scanner of business managers 75

PowerPoint Presentation:

76 TBC has a methodology for implementation Process mapping Value stream mapping Prioritization with respect to product delivery Selecting focus area Reduce NVAs

PowerPoint Presentation:

Tools used: SMED, KANBAN, 5S, Process mapping, layout change, Technology, Logistical Management, Supply Chain Management 77

authorStream Live Help