management

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management

  1. 1. Managing the Value Chain, Information Technology, and E-Business CHAPTER 14 0
  2. 2. Learning Outcomes <ul><li>Define operations management and describe its application within manufacturing and service organizations. </li></ul><ul><li>Explain today’s partnership approach to supply chain management . </li></ul><ul><li>Summarize considerations in designing facilities layout . </li></ul><ul><li>Discuss new technologies used for manufacturing and service operations, and explain what is meant by lean manufacturing . </li></ul><ul><li>Explain why small inventories are preferred by most organizations and describe just-in-time inventory management . </li></ul><ul><li>Identify ways in which information technology has transformed the manager’s job. </li></ul><ul><li>Describe different types of IT systems used in today’s organizations and how they support daily operations and decision making. </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  3. 3. Which Side of Your Brain Do You Use? <ul><li>Managers are inundated with data and information </li></ul><ul><li>Computers and the Internet have expanded the options of information </li></ul><ul><li>Managers choose from written reports, explicit data or visuals </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  4. 4. The Organization As a Value Chain <ul><li>At the center of the transformation process is the technical core </li></ul><ul><ul><li>The management of inputs to produce products and services (output) </li></ul></ul><ul><ul><li>Drive value to customers </li></ul></ul><ul><li>Operations Management pertains to the day-to-day management of the technical core </li></ul><ul><ul><li>Managing the physical production of goods or services </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  5. 5. The Value Chain Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  6. 6. Manufacturing vs. Service Organizations Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  7. 7. Supply Chain Management <ul><li>Efficient and reliable system for distributing finished products </li></ul><ul><li>Managing the sequence of suppliers and purchasers </li></ul><ul><li>From obtaining raw materials to distributing finished goods </li></ul><ul><li>Use of Internet technologies </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  8. 8. Integrated Supply Chain Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  9. 9. Facilities Layout <ul><li>Process Layout – similar functions are grouped together </li></ul><ul><li>Product Layout – assembly line, tasks are arranged according to progress </li></ul><ul><li>Cellular Layout – sequenced tasks are grouped into cells </li></ul><ul><li>Fixed-Position Layout – product remains at one location and resources are brought to it </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  10. 10. Basic Production Layouts Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  11. 11. Technology Automation <ul><li>Radio-Frequency Identification (RFID) – electronic tagging to track items </li></ul><ul><li>Flexible Manufacturing Systems – production lines that can be adapted to produce different products </li></ul><ul><li>Lean Manufacturing – using highly trained employees, technology and innovative methods to cut waste and improve quality </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  12. 12. Inventory Management <ul><li>Inventory is expensive to carry </li></ul><ul><li>Unproductive asset </li></ul><ul><li>Dollars not tied up in inventory can be used in other areas </li></ul><ul><li>High levels of inventory hide business problems </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  13. 13. Just-in-Time Inventory <ul><li>Designed to reduce the level of inventory and associated costs </li></ul><ul><ul><li>Stockless systems, zero inventory systems, kanban systems </li></ul></ul><ul><li>Suppliers deliver inventory at the exact moment needed </li></ul><ul><li>Reduces raw materials inventory to zero </li></ul><ul><li>Matching finished-goods inventory to sales demand </li></ul><ul><li>Reduced inventory frees capital for other uses </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  14. 14. Information Technology Has Transformed Management <ul><li>Collaboration </li></ul><ul><ul><li>Information technology connects people around the world </li></ul></ul><ul><ul><li>Sharing and exchanging information and ideas </li></ul></ul><ul><li>Knowledge Management </li></ul><ul><ul><li>Systematically gathering and organizing knowledge </li></ul></ul><ul><ul><li>Foster a culture of continuous learning and knowledge sharing </li></ul></ul><ul><ul><li>Knowledge is different than data and information, knowledge has a human factor; drawn conclusions </li></ul></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  15. 15. Management Information Systems (MIS) <ul><li>Computer-based system </li></ul><ul><li>Provides information and support for effective decision making </li></ul><ul><ul><li>Decision Support Systems </li></ul></ul><ul><ul><li>Executive Information Systems </li></ul></ul><ul><ul><li>Groupware/Collaborative Work Systems </li></ul></ul><ul><li>Enterprise Resource Planning (ERP) integrates business processes across the firm </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  16. 16. Basic Elements of MIS Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  17. 17. Enterprise Resource Planning Systems <ul><li>Backbone of an organization’s operation </li></ul><ul><li>Optimizes business processes </li></ul><ul><li>Collects, processes, and provides information about the entire firm </li></ul><ul><li>Managers can analyze decisions across the organization </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  18. 18. Example of ERP Applications Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  19. 19. New Generation of Information Technology <ul><li>Innovative technology on the Internet is being fueled by individuals </li></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><li>Wikis </li></ul></ul><ul><ul><li>Social Networking </li></ul></ul><ul><ul><li>Peer-to-Peer File Sharing </li></ul></ul><ul><li>Companies are using these tools and starting their own </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0
  20. 20. The Internet and E-Business <ul><li>Organizations have been incorporating the Internet to expand their operations </li></ul><ul><ul><li>Improve business processes </li></ul></ul><ul><ul><li>Reaching new customers </li></ul></ul><ul><ul><li>Leveraging resources </li></ul></ul><ul><li>Managers must align e-Business strategies with corporate strategy </li></ul>Copyright ©2010 by South-Western, a division of Cengage Learning.  All rights reserved. 0

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