Introduction to Operations Management(PS)

1、 Wiley 20071Chapter 1 - Introduction to Operations ManagementOperations ManagementbyR. Dan Reid & Nada R. Sanders3rd Edition Wiley 2007PowerPoint Presentation by R.B. Clough UNHM. E. Henrie - UAA Wiley 20072What is Operations Management? The business function responsible for planning, coordinati

2、ng, and controlling the resources needed to produce a companys products and services Wiley 20073What is Operations Management?nIt is a management functionnOrganizations core functionnEvery organization has OM functionnService or ManufacturingnFor profit or Not for profit Wiley 20074Typical Organizat

3、ion Chart Wiley 20075What is Operations Management Role?nOM Transforms inputs to outputsnInputs are resources such asnPeople, Material, and MoneynOutputs are goods and services Wiley 20076OMs Transformation Process Wiley 20077OMs Transformation RolenTo add valuenIncrease product value at each stagen

4、Value added is the net increase between output product value and input material valuenProvide an efficient transformationnEfficiency perform activities well at lowest possible cost Wiley 20078Goods & ServicesnServicesnIntangible productnProduct cannot be inventoriednHigh customer contactnShort r

5、esponse timenLabor intensivenManufacturingnTangible productnProduct can be inventoriednLow customer contactnLonger response timenCapital intensive Wiley 20079On the other handnBoth use technology nBoth have quality, productivity, & response issuesnBoth must forecast demandnBoth will have capacit

6、y, layout, and location issuesnBoth have customers, suppliers, scheduling and staffing issuesnManufacturing often provides servicesnServices often provides tangible goods Wiley 200710Hybrid organizationsnSome organizations are a blend of service/manufacturing/quasi-manufacturing Quasi-Manufacturing

7、(QM) organizationsnQM characteristics includenLow customer contact & Capital Intensive Wiley 200711Improving Productsn/templates/story/story.php?storyId=89070760nhttp:/ Wiley 200712Improving Servicesn/templates/story/story.php?storyId=88196545 n

8、/templates/story/story.php?storyId=7000908 Wiley 200713Trends in OMnService sector growing to 50-80% of non-farm jobs- See Figure 1-4nGlobal competitivenessnDemands for higher qualitynHuge technology changesnTime based competitionnWork force diversity Wiley 200714OM DecisionsnAll organizations are b

9、ased on decisionsnDecisions follow a similar pathnFirst decisions very broad Strategic decisionsnStrategic Decisions set the direction for the entire company; they are broad in scope and long-term in naturenFollowing decisions focus on specifics - Tactical decision Wiley 200715OM DecisionsnTactical

10、decisions focus onnSpecific day-to-day issuesnResource needs, schedules, & quantities to producenTactical decisions are very frequentnStrategic decisions less frequentnTactical decisions must align with strategic decisions Wiley 200716OM Decisions Wiley 200717Plan of Book-Chapters link to Types

11、of OM Decisions Wiley 200718Why OM?nFor long-run success companies must place much important on their operationsnThe 1950-1960 era was the U.S. golden era where primary opportunities were marketingnThe 1970-1980 U.S. companies experienced a large decline in productivity growth international firms be

12、gan to challenge in many marketsnThe 1970-1980 era saw U. S. firms lagging behind in methods and processesnThe resurgence of American business in the 1990s capitalized on improved operations Wiley 200719Historical Development of OMnIndustrial revolutionLate 1700snScientific managementEarly 1900snHum

13、an relations/Human Resources 1930s - nManagement scienceMid-1900snComputer age1970snEnvironmental Issues1970s Wiley 200720Historical Development of OMnJust-in-Time Systems (JIT)1980snTotal quality management (TQM)1980snReengineering1990snGlobal competition1980snFlexibility1990s Wiley 200721Historica

14、l Development of OMnTime-Based Competition1990snSupply chain Management1990snElectronic Commerce2000snOutsourcing and flattening of the world2000s Wiley 200722OM in PracticenOM has the most diverse organizational functionnManages the transformation processnOM has many faces and names such as;nV. P.

15、operations, Director of supply chains, Manufacturing managernPlant manger, Quality specialists, etc.nAll business functions need information from OM in order to perform their tasks Wiley 200723Business Information Flow Wiley 200724OM Across the OrganizationnMost businesses are supported by the funct

16、ions of operations, marketing, and financenThe major functional areas must interact to achieve the organization goals Wiley 200725OM Across the Organization - continuednMarketing is not fully capable of meeting customer needs if they do not understand what operations can producenFinance cannot judge

17、 the need for capital investments if they do not understand operations concepts and needsnInformation systems enables the information flow throughout the organizationnHuman resources must understand job requirements and worker skillsnAccounting needs to consider inventory management, capacity inform

18、ation, and labor standards Wiley 200726Chapter 1 HighlightsnOM is the business function that is responsible for managing and coordinating the resources needed to produce a companys products and services.nIts role of OM is to transform organizational inputs into companys products or services outputsn

19、OM is responsible for a wide range of decisions, ranging from strategic to tactical.nOrganizations can be divided into manufacturing and service organizations, which differ in the tangibility of the product or service Wiley 200727Chapter 1 Highlights - continuednA number of historical milestones hav

20、e shaped OM. Some of the more significant of these are the Industrial Revolution, scientific management, the human relations movement, management science, and the computer agenOM is highly important function in todays dynamic business environment. Among the trends with significant impact are just-in-time, TQM, reengineering, flexibility, time-based competition, SCM, global marketplace, and environmental issuesnOM works closely wit