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    management management Presentation Transcript

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