Using this and subsequent slides, you might go through in more detail the decisions of Operations Management. While greater detail is provided by these slides than the earlier one, you may still decide to have the students contribute examples from their own experience.
Course Introduction / Orientation Faculty: Anupam Das, PhD Office : Building 250, Room 446 Email: [email_address] Phone: 250-753-3245 ext. 2477 Class Hours: 08.30am – 10.30am, Monday, Bldg: 250/125 (All sections) 08.30am – 10.30am, Friday, Bldg: 250/140 (sec. I11N70) 10.30am – 12.30pm, Friday, Bldg: 250/140 (sec. I11N72) 01.30am – 03.30pm, Friday, Bldg: 250/140 (sec. I11N71) Office Hours: 10.30 am – 12.00noon Monday, 09.30 am – 12.00noon Tuesday, or by appointment Textbook: Jay Heizer and Barry Render (2011), Operations Management , 10 th edition, Prentice Hall
Course Introduction / Orientation Methods of Evaluation Assignment value Due Class Participation and Learning 15% May 30, June 13, Reinforcement/Quizzes July 11 Group assignments (3 @ 15%) 45% June 1 & 20, July 15 Final Exam (Closed book) 40% July 18
“ The systematic design, direction and control of processes that transform inputs into services and products for internal, as well as external customers ” Operations Management is ---- Inputs Transformation Processes (Adding value) Outputs
Firms have many processes that support the core processes.
Core & Support Process Linkages Support processes New service/ product development process Supplier relationship process Order fulfillment process Customer relationship process External Suppliers External Customers
Provide key resources, capabilities, or other inputs required to execute core processes
Can include: accounting & finance, human resources functions, Information and Communications Technology (ICT) support, and enterprise and functional management.
Support/Non-Core Processes – provide vital resources and inputs to the core processes and are essential to the management of the business
Firms have many processes that support the core processes. Support Process Support processes New service/ product development process Supplier relationship process Order fulfillment process Customer relationship process External Suppliers External Customers (i.e. accounting, finance, human resource management, etc)
Answers to the previous six questions are challenged by asking still another set of questions.
Why is the process even being done?
Why is it being done where it is being done?
Why is it being done when it is being done?
Process Value Analysis Step 1: what activities are being done – where, when, how, and who Step 2: why are they (activities) being done this way? Step 3: Is each step necessary; does it add value? Step 4: Design alternative ways to add value; consider radical verses incremental Change
Facilitation 101 – a facilitator is a third-party who’s main purpose is to assist a group of people in generating ideas and solutions to various problems under consideration . Specific tasks can vary however facilitators should follow the
Business process management (BPM) is a management discipline that combines a process-centric, IT enabled, and cross-functional approach to improving how organizations achieve their business goals.
BPM ensures that business processes follow a disciplined design, the process is repeatable and is followed, measured regularly, and the processes are kept up-to-date.
What Is Operations Management? Production is the creation of goods and services Operations management (OM) is the set of activities that create value in the form of goods and services by transforming inputs into outputs
Manufacturing Organizational Charts Marketing Sales promotion Advertising Sales Market research Operations Facilities Construction; maintenance Production and inventory control Scheduling; materials control Quality assurance and control Supply-chain management Manufacturing Tooling; fabrication; assembly Design Product development and design Detailed product specifications Industrial engineering Efficient use of machines, space, and personnel Process analysis Development and installation of production tools and equipment Finance/ accounting Disbursements/ credits Receivables Payables General ledger Funds Management Money market International exchange Capital requirements Stock issue Bond issue and recall
Goods and Services Automobile Computer Installed carpeting Fast-food meal Restaurant meal/auto repair Hospital care Advertising agency/ investment management Consulting service/ teaching Counseling Percent of Product that is a Good Percent of Product that is a Service 100% 75 50 25 0 25 50 75 100% | | | | | | | | |
Productivity Challenge Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as labour and capital) The objective is to improve productivity! Important Note! Production is a measure of output only and not a measure of efficiency
Flexibility is matching market changes in design innovation and volumes
Institutionalization at Hewlett-Packard
Reliability is meeting schedules
German machine industry
Timeliness is quickness in design, production, and delivery
Johnson Electric, Bennigan’s, Motorola
Competing on Response
Components of OM Mission and Strategy P/OM Mission and Strategy Location Procurement Human Resources & Job Design Inventory Reliability and Maintenance Process Design Layout Scheduling Quality Management Product Design
Product Life Cycle Best period to increase market share R&D engineering is critical Practical to change price or quality image Strengthen niche Poor time to change image, price, or quality Competitive costs become critical Defend market position Cost control critical Introduction Growth Maturity Decline Company Strategy/Issues Internet search engines Sales Drive-through restaurants CD-ROMs Analog TVs iPods Boeing 787 LCD & plasma TVs Twitter Avatars Xbox 360
Product Life Cycle Product design and development critical Frequent product and process design changes Short production runs High production costs Limited models Attention to quality Forecasting critical Product and process reliability Competitive product improvements and options Increase capacity Shift toward product focus Enhance distribution Standardization Fewer product changes, more minor changes Optimum capacity Increasing stability of process Long production runs Product improvement and cost cutting Little product differentiation Cost minimization Overcapacity in the industry Prune line to eliminate items not returning good margin Reduce capacity Introduction Growth Maturity Decline OM Strategy/Issues
Developing Missions and Strategies Strategy Process
The operations manager’s job is to implement an OM strategy, provide competitive advantage, and increase productivity Strategy Development and Implementation
Strategy Development Process Determine the Corporate Mission State the reason for the firm’s existence and identify the value it wishes to create. Form a Strategy Build a competitive advantage, such as low price, design, or volume flexibility, quality, quick delivery, dependability, after-sale service, broad product lines. Analyze the Environment Identify the strengths, weaknesses, opportunities, and threats. Understand the environment, customers, industry, and competitors.