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Buspro infosheet1 Presentation Transcript

  • 1. 1 Operations and Productivity PowerPoint presentation to accompany Heizer and Render Operations Management, 10e Principles of Operations Management, 8e PowerPoint slides by Jeff Heyl © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 2. Learning Objectives • • • • • • • • Definition of Operations Management (OM) Organizational Functions Why Study OM? A brief history of operations management The future of the discipline Goods Versus Services Measuring productivity Career opportunities in operations management © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 3. 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 © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 4. Organizing to Produce Goods and Services • Essential functions: 1. Marketing – generates demand 2. Production/operations – creates the product 3. Finance/accounting – tracks how well the organization is doing, pays bills, collects the money 4. Human Resources – provides labor, wage and salary administration and job evaluation © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 5. Organizational Charts Commercial Bank Operations Teller Scheduling Check Clearing Collection Transaction processing Facilities design/layout Vault operations Maintenance Security © 2011 Pearson Education, Inc. publishing as Prentice Hall Marketing Finance Loans Human Resources Commercial Recruitment Industrial Job evaluation Financial Performance evaluation Personal Wage and Salary Adm. Mortgage Personnel records Investments Security Real estate Accounting Auditing Trust Department
  • 6. Organizational Charts Manufacturing 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 © 2011 Pearson Education, Inc. publishing as Prentice Hall Finance/ accounting Disbursements/ credits Receivables Payables General ledger Funds Management Money market International exchange Capital requirements Stock issue Bond issue and recall Human Resources Recruitment Marketing Sales promotion Advertising Sales Market research Job evaluation Performance evaluation Wage and Salary Adm. Personnel records
  • 7. Why Study OM? 1. OM is one of four major functions of any organization, we want to study how people organize themselves for productive enterprise 2. We want (and need) to know how goods and services are produced 3. We want to understand what operations managers do 4. OM is such a costly part of an organization © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 8. Options for Increasing Contribution Marketing Option OM Option Current Sales Cost of Goods Gross Margin Finance Costs Subtotal Taxes at 25% Contribution Finance/ Accounting Option Increase Sales Revenue 50% Reduce Finance Costs 50% Reduce Production Costs 20% $100,000 – 80,000 20,000 – 6,000 14,000 – 3,500 $ 10,500 $150,000 – 120,000 30,000 – 6,000 24,000 – 6,000 $ 18,000 $100,000 – 80,000 20,000 – 3,000 17,000 – 4,250 $ 12,750 $100,000 – 64,000 36,000 – 6,000 30,000 – 7,500 $ 22,500 © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 1.1
  • 9. What Operations Managers Do Basic Management Functions      Planning Organizing Staffing Leading Controlling © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 10. The Critical Decisions 1. Design of goods and services – What good or service should we offer? – How should we design these products and services? 2. Managing quality – How do we define quality? – Who is responsible for quality? © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 1.2 (cont.)
  • 11. The Critical Decisions 3. Process and capacity design – What process and what capacity will these products require? – What equipment and technology is necessary for these processes? 4. Location strategy – Where should we put the facility? – On what criteria should we base the location decision? © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 1.2 (cont.)
  • 12. The Critical Decisions 5. Layout strategy – How should we arrange the facility? – How large must the facility be to meet our plan? 6. Human resources and job design – How do we provide a reasonable work environment? – How much can we expect our employees to produce? © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 1.2 (cont.)
  • 13. The Critical Decisions 7. Supply-chain management – Should we make or buy this component? – Who should be our suppliers and how can we integrate them into our strategy? 8. Inventory, material requirements planning, and JIT – How much inventory of each item should we have? – When do we re-order? © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 1.2 (cont.)
  • 14. The Critical Decisions 9. Intermediate and short–term scheduling – Are we better off keeping people on the payroll during slowdowns? – Which jobs do we perform next? 10. Maintenance – How do we build reliability into our processes? – Who is responsible for maintenance? © 2011 Pearson Education, Inc. publishing as Prentice Hall Table 1.2 (cont.)
  • 15. Opportunities Figure 1.2 © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 16. Significant Events in OM Figure 1.3 © 2011 Pearson Education, Inc. publishing as Prentice Hall
  • 17. Self-Check • What are the 4 essential function of organizing products and services? • What basic functions do managers do? • What 10 critical decisions do managers make?
  • 18. Answer Key 1. Marketing, Production/operations, Finance/accou nting, Human Resources 2. Planning, Organizing, Staffing, Leading, Controlling 3. 10 critical decisions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Design of goods and services Managing quality Process and capacity design Location strategy Layout strategy Human resources and job design Supply-chain management Inventory, material requirements planning, and JIT Intermediate and short–term scheduling Maintenance
  • 19. Fast Food Feast Case • Visit at least two different fast-food restaurants that make hamburgers. For example, McDonald's, Jollibee, Whoopee are good choices. Observe the basic operational differences between these stores. Note the differences in the following processes: • QUESTIONS • How are in-store orders taken? • Are the hamburgers prepared to order, or are they prepared ahead of time and delivered from a storage bin? • How are special orders handled? • How are the hamburgers cooked? • How are the hamburgers assembled? • Is a microwave oven used in the process? • How are other common items, such as french fries and drinks, handled?