Ops management   lecture 1 introduction
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Ops management   lecture 1 introduction Ops management lecture 1 introduction Presentation Transcript

  • Operations management “TO FAIL TO PLAN IS TO PLAN TO FAIL” Anonymous
  • Jill MitchellEmail: jmitchell@vcconnect.co.zaBackgroundBSc(Hons) Chemical EngineeringChartered/Professional EngineerMBA – Bristol Business School, UKCurrently studying for a PhD in Entrepreneurship at PretoriaUniversity25 years+ industry experience, specifically brewing , food &packaging industry12 years+ small business management experience, UK & RSA:-setting up and running businesses
  • Course aimsUnderstand and identify the role of the operationsfunction in manufacturing and service environmentsRelate the role of the operations function to thecontribution which operations bring to thecompetitiveness of the businessIdentify the different stakeholders which any operationhas to considerUnderstand the effects of operations on businessperformanceUnderstand the basic operation systems within themanufacturing and services environments
  • Skills developmentUnderstand the challenges within OPS MAN environmentUnderstand the role and task of an OPS MAN in relation to that of theirfunctional peersUnderstand the scope, design and management of manufacturing andservice organisationsEvaluate the elements and implementation of lean and efficient operationsEvaluate and apply techniques and business processes of operationalplanning and control systemsUnderstand the difference in resource scheduling problems betweenmanufacturing and service environmentsUnderstand the fundamental differences between alternative ops manapproaches and their applicationEvaluate alternative operational planning and control approaches
  • assessmentTwo assignments 1 40% weighting due 24th April 2012 2 60% weighting due 26th June 2012
  • Assignment 1Theory & practical10 hoursLearning Units 1-6No short or long questions(sentences& paragraphs)Essay ResponseMarks: 100
  • Assignment 2Theory & practical10 hoursLearning Units 7-13No short or long questions(sentences& paragraphs)Essay ResponseMarks: 100
  • Additional readingP17 of manual
  • History of om EARLY CONCEPTS – 1776 TO 1880 Industrial Revolution Agricultural subsistence ->factory ad mass production Specialisation of labour (Smith & Babbage) Standardised parts (Whitney) SCIENTIFIC MANAGEMENT – 1880 TO 1910 Loading & scheduling charts (Gantt) Time & motion studies (Gilbreth) Process analysis/process optimisation(Taylor)
  • History of om ERA OF MASS PRODUCTION – 1910 TO 1980 Use of assembly line (Ford) Statistical sampling in quality control(Shewhart) Economic order quantity (EOQ) models (Harris) Linear programming, PERT and critical path (Du Pont) Materials requirement planning (MRP) Pareto analysis, cost of quality, quality trilogy (Juran) Total quality control (Feigenbaum/Ishikawa) ERA OF LEAN PRODUCTION – 1980 TO 1995 JIT/CAD evolved (Toyota) Electronic data interchange (EID) Empowerment of employees Total quality management (TQM)
  • History of omERA OF MASS CUSTOMISATION – 1995 TO PRESENT Globalisation Internet – Ecommerce Enterprise resource planning (ERP) – SAP,BAAN, Q-Music Supply chain management (SCM) Finite scheduling
  • SCOPEManufacturingServicesSchedulingInventory controlManufacturingPlant maintenanceProductivity, efficiency, customer service………..
  • SCOPEThe day to day management of processesManagement of the strategic role The process that makes things happen The management of the needs of the customer and what the market requires
  • Operations planning & control decisions Must take into account the strategic and tactical plansOps Planning DecisionsHow much inventory to carryQuantity of raw materials to purchaseHow much overtime to workControl DecisionsBudget controlProductivity of factory
  • FUUNCTION RELATIONSHIP Board of Directors Finance Operations Marketing Accounts Payable Production Sales PromotionAccounts Receivable Logistics Market Research Investments Procurement Advertising Loans Product Design Customer Satisfaction
  • Operations at EmiratesFilm
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services 2. MANPOWER – Selection, mentoring, training and rewarding of workforce
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services 2. MANPOWER – Selection, mentoring, training and rewarding of workforce 3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services 2. MANPOWER – Selection, mentoring, training and rewarding of workforce 3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service 4. METHODS – Design of processes for optimisation and manufacture or deliver the service
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services 2. MANPOWER – Selection, mentoring, training and rewarding of workforce 3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service 4. METHODS – Design of processes for optimisation and manufacture or deliver the service 5. MANAGEMENT – Manage in roles of planning, organising, leading and controlling
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services 2. MANPOWER – Selection, mentoring, training and rewarding of workforce 3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service 4. METHODS – Design of processes for optimisation and manufacture or deliver the service 5. MANAGEMENT – Manage in roles of planning, organising, leading and controlling 6. MACHINES - Plant must be reliable and well maintained
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services 2. MANPOWER – Selection, mentoring, training and rewarding of workforce 3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service 4. METHODS – Design of processes for optimisation and manufacture or deliver the service 5. MANAGEMENT – Manage in roles of planning, organising, leading and controlling 6. MACHINES - Plant must be reliable and well maintained 7. MESSAGES – Communication between departments, management and employees
  • 8 M’s of Operations Management 1. MONEY – Finance available to produce goods or services 2. MANPOWER – Selection, mentoring, training and rewarding of workforce 3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service 4. METHODS – Design of processes for optimisation and manufacture or deliver the service 5. MANAGEMENT – Manage in roles of planning, organising, leading and controlling 6. MACHINES - Plant must be reliable and well maintained 7. MESSAGES – Communication between departments, management and employees 8. MARKETS - Need to be aware of markets and market requirements
  • CLASS EXERCISEGROUPS20 MINUTESImagine you are the managing directorof a manufacturing company thatmanufactures dogfood. Write a profileof an operations manager you requirefor your factory
  • RELATIONSHIP WITH OTHER DEPARTMENTS FINANCE HUMAN QUALITY RESOURCES OPERATIONS SALES & ENGINEERING MARKETING PURCHASING IT
  • TRANSFORMATION VALUE ADDED INPUTS MoneyManpower OUTPUTS Materials TRANSFORMATION Finished goods and services MethodsManagement Machines Messages Markets FEEDBACK
  • GOODS VS SERVICESSERVICES GOODSIntangible TangibleProvided by service organisations Produced by manufacturersImpossible to store Easy to storeCannot be transported Can be transportedConsume & produce simultaneously Delay between production & consumptionLose value rapidly Maintain value much longerLikely to be unique Less likely to be uniqueHigh customer/provider interaction Little/no contactCustomers participate in service Little/no participationService near customer Centralised away from customerVery labour intensive Mostly automatedDifficult to measure quality Easier to measure qualityServer determines quality Does not depend on one personCannot measure output accurately Easier to measure output
  • GOODS SERVICES SCALE GOODS High product content Laptop sales Medium product content Restaurant Low product content Medical Services No product content Lecturing SERVICES
  • MODES OF OMPRIMARY – Sourcing of raw material from naturalsources eg. Mining, fishing, forestrySECONDARY – Utilises the materials from primaryfunctions in the manufacture of goods. Allmanufacturing operations fall into this categoryTERTIARY –Rendering of services only eg.Doctor, attorney etc
  • OM STRUCTURESDECENTRALISED – Local manager determines needs andtherefore delivery date and time. Planning carried outonly for this facility. ADVANTAGE: Reduced need forcommunication & control. DISADVANTAGE: Inventorylevels hard to control, customer service?CENTRALISED – All systems managed from a centralpoint. All scheduling, purchasing, planning determinedby Head Office. Management of inventory to ensureequitable distribution of raw materials. ADVANTAGE:Synchronisation of orders, production schedules etc.DISADVANTAGE: Ability to react quickly to localsituations
  • GROUP EXERCISE GROUPS 20 MINUTES1. Provide examples of operations managers and discuss the jobs of each2. What are the 8 M’s involved in this lecture and how do they fit into the transformation process3. Name examples of companies that provide goods and services or a combination of both