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Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
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Productivity.op mgmt.chpt 20
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Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
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Productivity.op mgmt.chpt 20
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Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
Productivity.op mgmt.chpt 20
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Productivity.op mgmt.chpt 20
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Productivity.op mgmt.chpt 20

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WACE PRINCIPLES OF MANAGEMENT LECTURES 2010

WACE PRINCIPLES OF MANAGEMENT LECTURES 2010

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  • 1. SEWP ZC 241: PRINCIPLES OF MANAGEMENT Productivity, Operations Management, and Total Quality Management
  • 2. After studying this chapter, you should understand:
    • The nature of productivity issues and ways to improve effectiveness and efficiency.
    • Production and operations management as an applied case of managerial planning and control.
    • 3.  Techniques for improving productivity including JIT and outsourcing.
    • 4.  The importance of quality, the nature of a variety of techniques for improving quality, and lean manufacturing.
  • 3. What is Productivity?
    • Productivity is the input-output ratio within a time period with due consideration
    • for quality
  • 4. Production and Operations Management: Manufacturing and Service
    • Production management was the term used to refer to those activities
    • necessary to
    • manufacture
    • products
  • 5. Production and Operations Management: Manufacturing and Service
    • Operations management refers to activities necessary to produce and deliver a service
    • as well as a
    • physical product
  • 6. WHAT IS OPERATIONS MGMT?
    • Business Function that:
      • PLANS
      • ORGANIZES
      • COORDINATES
      • CONTROLS
      • the RESOURCES needed to provide company’s GOODS and SERVICES .
      • OPERATIONS MANAGEMENT is a MANAGEMENT FUNCTION .
  • 7. WHAT IS OPERATIONS MGMT?
    • Definitions of tasks:
    • PLANNING:
      • Activities that establish a course of action. Guides future decision making.
    • ORGANIZING:
      • Activities that establish a structure of tasks and authority.
    • CONTROLLING:
      • Activities that ensure that actual performance is in accordance with planned performance.
  • 8. WHAT IS OPERATIONS MGMT?
    • Operations management INVOLVES:
      • People
      • Equipment
      • Technology
      • Information
      • OPERATIONS MANAGEMENT is a CORE FUNCTION of any company.
  • 9. ROLE OF OPERATIONS MGMT: OPERATIONS SYSTEM INPUTS COMPARISON: ACTUAL VERSUS DESIRED OUTPUTS CONVERSION/ TRANSFORMATION PROCESS ADJUSTMENT NEEDED MONITOR OUTPUT RANDOM FLUCTUATIONS To TRANSFORM company’s INPUTS into FINISHED GOODS or SERVICES
  • 10. ROLE OF OPERATIONS MGMT: COMPONENT DEFINITIONS
    • INPUTS:
      • Human Resource
      • Facilities and processes
      • Materials
      • Technology
      • Information
    • OUTPUTS:
      • Physical Goods
      • Services
  • 11. ROLE OF OPERATIONS MGMT: COMPONENT DEFINITIONS
    • OPERATION SYSTEMS:
    • Part of orgn. That produces organizations physical goods and services.
    • CONVERSION/ TRANSFORMATION PROCESS:
    • The process of changing INPUTS to OUTPUTS.
    • TECHNOLOGY:
    • The level of scientific sophistication in plant/ equipement or skills in the CONVERSION PROCESS..
  • 12. ROLE OF OPERATIONS MGMT: COMPONENT DEFINITIONS
    • RANDOM FLUCTUATIONS:
    • Unplanned/ Uncontrollable influences that cause differences between ACTUAL and EXPECTED output.
    • Can be EXTERNAL or INTERNAL.
    • VALUE ADDED:
    • Net increase between FINAL VALUE of outputs compared to SUM of VALUE OF INPUTS .
    • Greater the value, more profitable the business.
  • 13. ROLE OF OPERATIONS MGMT: COMPONENT DEFINITIONS
    • FEEDBACK:
    • INFORMATION in the control process that allows management to decide whether organizational activities require ADJUSTMENT .
  • 14. DEFINITION OF OPERATIONS MANAGEMENT:
    • OPERATIONS MANAGEMENT : THE MANAGEMENT OF THE CONVERSION PROCESS WHICH CONVERTS INPUTS INTO DESIRED OUTPUTS OF GOODS AND SERVICES.
  • 15. DISTINCTIONS BETWEEN MANUFACTURING & SERVICE OPERATIONS
    • Organizations divided into 2 broad categories based on their OUTPUTS.
    • Primary distinctions
    Manufacturing organizations Service organizations Produces physical tangible goods. Produces intangible goods (Services) Can be stored as INVENTORY before they rae needed. Cannot be produced AHEAD of time. Customers have no DIRECT CONTACT with the conversion process. Customers are present during CREATION or DELIVERY of SEVICES.
  • 16. TYPE OF GOODS MANUFACTURING- TANGIBLE SERVICES- INTANGIBLE
  • 17. DEGREE OF CUSTOMER CONTACT MANUFACTURING- LOW SERVICES- HIGH
  • 18. INVENTORY MANUFACTURING- STORED AHEAD OF USAGE SERVICES- REAL TIME
  • 19. CHARACTERISTICS: MFG & SERVICES ORGANIZATIONS
  • 20. OVERLAPS
    • In many organizations, there is an overlap of manufacturing and services:
      • Computer + Service
      • Car+ Service
      • There are certain organizations, which have:
        • Low Customer Contact.
        • Highly Capital Intensive.
        • Yet, they provide a SERVICE.
        • These are called QUASI MANUFACTURING ORGANIZATIONS
  • 21. QUASI MANUFACTURING ORGANIZATION: EXAMPLE
  • 22. INDIA POSTS
    • Provides SERVICE- sppedy, reliable delivery of letters, documents & packages.
    • Output is intangible and cant be stored in inventory.
    • Customer not present during creation of service.
    • Highly capital intensive- 1,20,000+ Post Offices, telecom equipment, delivery trucks .
    MANY ORGANIZATIONS FALL IN BETWEEN MANUFACTURING & SERVICES
  • 23. Operations Management Systems
  • 24. Steps in Product and Production Design
    • 1. Create product ideas by searching for consumer needs and screening the various alternatives
    • 2. Select the product on the basis of various considerations, including data from market and economic analyses, and make a general feasibility study
    • 3. Prepare a preliminary design by evaluating various alternatives, taking into consideration reliability, quality, and maintenance requirements
  • 25. Steps in Product and Production Design
    • 4. Reach a final decision by developing, testing, and simulating the processes to see if they work
    • 5. Decide whether the enterprise's current facilities are adequate or if new or modified facilities are required
    • 6. Select the process for producing the product; consider the technology and the methods available
    • 7. After the product is designed, prepare the layout of the facilities to be used, plan the system of production, and schedule the various things that must be done
  • 26. PROCESS OF CONVERTING AN IDEA INTO A PRODUCT OR A SERVICE
  • 27. INNOVATION: DEFINITION
    • Innovation means a new way of doing something.
    • Something new must be substantially different to be innovative, NOT an insignificant change.
    • Linked to performance and growth through improvements in efficiency, productivity , quality , competitive positioning , market share .
  • 28.  
  • 29. COMPONENTS OF INNOVATION
    • BASIC RESEARCH
    • APPLIED RESEARCH
    • DEVELOPMENT
    • IMPLEMENTATION
  • 30. COMPONENTS OF INNOVATION
    • BASIC RESEARCH
      • Research for advancement
      • of scientific knowledge that
      • has no specific commercial
      • use.
      • Maybe, of present or potential interest
    • APPLIED RESEARCH
      • Research for advancement of scientific knowledge that has specific commercial uses.
  • 31. COMPONENTS OF INNOVATION
    • DEVELOPMENT
      • Technical activity concerned
      • with translating basic and
      • applied research results into
      • products or processes.
    • IMPLEMENTATION
      • Activities involved with designing and building pilot models, equipment and facilities, and initiating marketing channels for products or services emerging from R & D
  • 32. DECAY CURVE FOR NEW PRODUCT IDEAS Screening Economic Analysis Development Testing Commercial Use
  • 33. TYPES OF PROCESS TECHNOLOGIES
    • PROJECTS
    • JOB SHOP
    • BATCH
    • ASSEMBLY LINE
    • CONTINOUS PLANTS
  • 34. CHARACTERISTICS: PROJECT TECHNOLOGY
    • Unique Product
    • Requirement of customer tailor made
    • Products not standardized .
    • Flexible conversion process.
    • High degree of problem solving required.
    • Teamwork and coordination essential.
  • 35. EXAMPLES: PROJECT TECHNOLOGY
  • 36. CHARACTERISTICS: JOB SHOP TECHNOLOGY
    • Small batches of different products.
    • High degree of customization .
    • Unique process steps or ‘Routing’
    • Each product uses small portion of resources.
    • Elaborate job tracking and control systems required.
    • High lead time for access to machines.
    • Equipment overloaded or under loaded .
  • 37. EXAMPLES: JOB SHOP TECHNOLOGY
  • 38. CHARACTERISTICS: BATCH TECHNOLOGY
    • Higher standardization than job shop.
    • Several products produced repeatedly and in large volumes .
    • Certain parts/ components/ items produced and stocked without customers orders.
    • System flexibility for small volume/ high variety products.
    • No product sufficiently dominant to warrant dedicated equipment processes .
  • 39. EXAMPLES: BATCH TECHNOLOGY
  • 40. CHARACTERISTICS: ASSEMBLY LINE TECHNOLOGY
    • Narrow range of specialized products.
    • Relatively stable product designs .
    • Specialized equipment, human skills and management systems.
    • Beyond a range, manufacturing system is inflexible .
  • 41. EXAMPLES: ASSEMBLY LINE TECHNOLOGY
  • 42. CHARACTERISTICS: CONTINOUS FLOW TECHNOLOGY
    • Products manufactured in continuous , endless flows.
    • Highly standardized products.
    • Normally highly capital intensive .
    • High degree of automation and process controls required.
    • High start up costs.
  • 43. EXAMPLES: CONTINOUS FLOW TECHNOLOGY
  • 44. SERVICE PROCESS TECHNOLOGIES
    • As diverse as product process technologies.
    • Services vary:
      • In amount of customer contact .
      • In intensiveness of labour versus capital .
  • 45. CUSTOMER CONTACT
    • Occurs in TWO ways:
      • Involvement during designing or customizing service
      • During creation of service.
  • 46. CUSTOMER CONTACT
    • Basis for categorizing services (high to low)
    • Trade off between flexibility and operational effectiveness .
    • High contact process technology:
      • More flexible , efficiency low since conversion process cant be standardized .
    • Low contact process technology:
      • Less flexible , but operations more standardized and efficient..
  • 47. TYPES OF SERVICE PROCESS TECHNOLOGIES LOW CUSTOMER CONTACT HIGH CUSTOMER CONTACT CAPITAL INTENSIVE QUASI MANUFACTURING CUSTOM SHOP SERVICES LABOUR INTENSIVE MASS SERVICES PROFESSIONAL SERVICES
  • 48. CHARACTERISTICS: SERVICE PROCESS TECHNOLOGIES
    • QUASI MANUFACTURING:
      • Rigidly standardized service.
      • Concerned with reliable delivery schedule.
      • Major capital intensive decisions.
    • MASS SERVICES:
      • Scheduling of human resource critical.
      • Standardized services.
      • Emphasis on training & development..
  • 49. CHARACTERISTICS: SERVICE PROCESS TECHNOLOGIES
    • CUSTOM SHOP SERVICE:
      • Professional staff, customized service.
      • Relatively capital intensive conversion technology..
      • Emphasis on cost containment and capital investment decisions.
    • MASS SERVICES:
      • Customized service.
      • Intensive interaction between customer and professional personnel.
      • Professional skills critical.
  • 50. LABOUR VERSUS CAPITAL INTENSIVENESS
    • CAPITAL INTENSIVE
    • LABOUR INTENSIVE
    Dominant concerns: Employee scheduling & training Dominant concerns: Technological advancements & capital investments
  • 51. Tools and Techniques for Improving Productivity
    • Inventory Planning and Control
    • Just-in-Time Inventory System
      • In the just-in-time (JIT) inventory method, the supplier delivers the components and parts to the production line "just in time" to be assembled
    • Outsourcing
      • Outsourcing means that production and operations are contracted to outside vendors that have expertise in specific areas
  • 52. What is Operations Research?
    • Operations research is the application of scientific methods to the study of alternatives in a problem situation, with a view to obtaining a quantitative basis for arriving at a best solution
  • 53. What is Operations Research?
    • An interdisciplinary branch of applied mathematics and formal science that uses methods such as mathematical modeling , statistics , and algorithms to arrive at optimal or near optimal solutions to complex problems .
  • 54. What is Operations Research?
  • 55. OR APPLICATIONS
    • statistics ,
    • optimization ,
    • probability theory ,
    • queuing theory ,
    • game theory ,
    • graph theory ,
    • decision analysis , and simulation
  • 56. What is Value Engineering?
    • Value engineering, is the process of analyzing the operations of the product or service, estimating the value of each operation, and attempting to improve that operation by trying to keep costs low at each step or part
  • 57. What is Work Simplification?
    • Work simplification is the process of obtaining the participation of workers in simplifying their work
  • 58. What is a Quality Circle?
    • A quality circle (QC) is a group of people from the same organizational area who meet regularly to solve problems they experience at work
  • 59. Total Quality Management (TQM)
    • Total quality management (TQM) is the organization's long-term commitment to the continuous improvement of quality, throughout the organization and with the active participation of all members at all levels, to meet and exceed customer expectations
  • 60. Mass Production vs Lean Production
    • MASS PRODUCTION
    • Sporadic and inconsistent improvements
    • Satisfied with “good enough”
    •   High inventory acceptable
    • LEAN PRODUCTION
    •   Continuous improvements (“kaizen”) with strategic breakthroughs
    • Aim at zero defects
    • Just-in-time inventory system
  • 61. Mass Production vs Lean Production
    • MASS PRODUCTION
    • “ Me” management with emphasis on individual performance
    •   Workers considered the cause of poor quality
    • LEAN PRODUCTION
    •   “ We” or team management
    • Everyone is the problem; especially management
  • 62. CAD/CAM
    • CAD/CAMs help engineers design products much more quickly than they could with the traditional paper-and-pencil approach
  • 63. THANK YOU!!! HAVE A GREAT WEEKEND

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