Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Â
Management ch19
1. PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook
Copyright Š 2005 Prentice Hall, Inc.Copyright Š 2005 Prentice Hall, Inc.
All rights reserved.All rights reserved.
8th
edition
Steven P. Robbins
Mary Coulter
2. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â2
L E A R N I N G O U T L I N E
Follow this Learning Outline as you read and study this chapter.
What Is Operations Management and Why Is It
Important?
⢠Explain what operations management is.
⢠Contrast manufacturing and services organizations.
⢠Describe managersâ role in improving productivity.
⢠Discuss the strategic role of operations management,
Value Chain Management
⢠Define value chain and value chain management.
⢠Describe the goal of value chain management.
⢠Discuss the requirements for successful value chain
management.
3. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â3
L E A R N I N G O U T L I N E (contâd)
Follow this Learning Outline as you read and study this chapter.
Value Chain Management (contâd)
⢠Tell what benefits result from value chain management.
⢠Explain the obstacles to value chain management.
Current Issues in Operations Management
⢠Discuss technologyâs role in manufacturing.
⢠Tell some of the various quality dimensions.
⢠Explain ISO9000 and Six Sigma.
⢠Describe mass customization and how operations
management contributes to it.
4. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â4
What Is Operations Management?
⢠Operations Management
ďThe design, operation, and control of the
transformation process that converts such resources
as labor and raw materials into goods and services
that are sold to customers.
⢠The Importance of Operations Management
ďIt encompasses both services and manufacturing.
ďIt is important in effectively and efficiently managing
productivity.
ďIt plays a strategic role in an organizationâs
competitive success.
5. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â5
Manufacturing and Services
⢠Manufacturing Organizations
ďUse operations management in the transformation
process of turning raw materials into physical goods.
⢠Service Organizations
ďUse operations management in creating nonphysical
outputs in the form of services (the activities of
employees interacting with customers).
6. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â6
Managing Productivity
⢠Productivity
ďThe overall output of goods or services produced
divided by the inputs needed to generate that output.
ďA composite of people and operations variables.
⢠Benefits of Increased Productivity
ďEconomic growth and development
ďHigher wages and profits without inflation
ďIncreased competitive capability due to lower costs
7. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â7
Value and the Value Chain
⢠Value
ďThe performance characteristics, features and
attributes, and any other aspects of goods and
services for which customers are willing to give up
resources (i.e., spend money).
⢠The Value Chain
ďThe entire series of organizational work activities that
add value at each step beginning with the processing
of raw materials and ending with the finished product
in the hands of end users
8. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â8
Value Chain Management
⢠Value Chain Management
ďThe process of managing the entire sequence of
integrated activities and information about product
flows along the entire value chain.
⢠Goal of Value Chain Management
ďTo create a value chain strategy that fully integrates
all members into a seamless chain that meets and
exceeds customersâ needs and creates the highest
value for the customer.
9. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â9
Value Chain Management (contâd)
⢠Requirements for Value Chain Management
ďA new business model incorporating:
ďś Coordination and collaboration
ďś Investment in information technology
ďś Changes in organizational processes
ďś Committed leadership
ďś Flexible jobs and adaptable, capable employees
ďś A supportive organizational culture and attitudes
10. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â10
Value Chain Management (contâd)
⢠Obstacles to Value Chain Management
ďOrganizational barriers
ďś Refusal or reluctance to share information
ďś Reluctance to shake up the status quo
ďś Security issues
ďCultural attitudes
ďś Lack of trust and too much trust
ďś Fear of loss of decision-making power
ďRequired capabilities
ďś Lacking or failing to develop the requisite value chain
management skills
11. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â11
Value Chain Management (contâd)
⢠Obstacles to Value Chain Management (contâd)
ďPeople
ďś Lacking commitment to do whatever it takes
ďś Refusing to be flexible in meeting the demands of a
changing situation
ďś Not being motivated to perform at a high level
ďś Lack of trained managers to lead value chain initiatives
12. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â12
Current Operations Management Issues
⢠Technologyâs Role in Manufacturing
ďIncreased automation and integration of production
facilities with business systems to to control costs
ďś Predictive maintenance, remote diagnostics, and utility
cost savings
⢠Quality
ďThe ability of
⢠Mass Customization
13. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â13
Current Issues⌠(contâd)
⢠Quality
ďThe ability of a product or service to reliably do what
itâs supposed to do and to satisfy customer
expectations.
⢠How is Quality Achieved
ďPlanning for quality
ďOrganizing and leading for quality
ďControlling for quality
⢠Quality Goals
ďISO900 certification and Six Sigma standards
14. Copyright Š 2005 Prentice Hall, Inc. All
rights reserved. 19â14
Current Issues⌠(contâd)
⢠Mass Customization
ďA design-to-order concept that provides consumers
with a product when, where, and how they want it.
ďMakes heavy use of technology in developing flexible
manufacturing techniques and engaging in continual
dialogue with customers.
⢠Benefits of Mass Customization
ďCreates an important relationship between the firm
and the customer in providing loyalty-building value to
the customer and in garnering valuable market
information for the firm.