Introduction to Production and Operation Management


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Introduction to Production and Operation Management

  1. 1. Introduction to Source: Dr. Felton Lean Retrieve from: ปรับปรุ งโดย ดร.กฤษดา เชียรวัฒนสุ ข
  2. 2. Feedback Inputs Processes Outputs Workers Goods Managers Services Equipment Feedback Facility Materials Land Operations and Processes Energy Information Lead time: The time between ordering a good or service and receiving it.
  3. 3. The management of systems or processes that create goods and/or provide services.  Planning  Coordinating  Executing
  4. 4. OVERVIEW OF OPERATIONS MANAGEMENT MODEL Input resources raw materials machines personnel capital land/buildings utilities information etc. Transformation Process Control Output Goods or Services
  5. 5. The difference between the cost of inputs and the value or price of outputs . Value added Inputs Material Labor Land Capital Transformation/ Conversion process Outputs Goods Services
  6. 6. Feedback and Control Physical Flow Information Flow Measurements taken at various points in the transformation process for control purposes are called feedback. The process of comparing outputs to previously established standards to determine if corrective action is needed is called controlling
  7. 7.  Operations management considers how the input are transformed into goods or services.  Control is when something is learned about the goods or services that is used to more effectively transform future goods or services.
  8. 8.        
  9. 9. Inputs Processing Outputs Improvement of patients health condition
  10. 10. Inputs Processing Outputs Knowledge Lecturing Future • Text Book Tutoring Operations • Lecture Notes Assignment Managers • Handouts Exam • Course CD • …… Teaching Evaluation
  11. 11.   
  12. 12. Production of goods “ Delivery of services
  13. 13. Standardized Customized high degree of uniformity Radio Canned food Mobile Phone Television Car Eyeglasses Tailoring A la Carte
  14. 14. Characteristic Manufacturing Tangible High High Low Easy Low High Easy Usually Service
  15. 15.  Forecasting  Capacity planning  Scheduling  Managing inventories  Assuring quality  Motivating employees  Deciding where to locate facilities  And more . . .
  16. 16.  Forecasting: Weather, landing conditions, seat demands for flights.  Capacity Planning: How many number of planes in each route?  Scheduling: Scheduling of planes for flights and for routine maintenance, scheduling of pilots and flights attendants.  Quality: Quality of the services, Safety.
  17. 17.  Forecasting: Demands for cars.  Capacity Planning : Number of shifts, level of workforce.  Inventory: Various component, parts.  Scheduling: Scheduling of various types of cars, Scheduling of workforce.  Quality: Quality of products, services.
  18. 18. Responsibilities of Operations Manager Planning – Capacity – Location – Products & services – Make or buy – Layout – Projects – Scheduling Controlling / Improving – Inventory – Quality – Costs – Productivity Organizing – Degree of centralization – Process selection Staffing – Hiring/laying off – Use of Overtime Directing – Incentive plans – Issuance of work orders – Job assignments
  19. 19. Why is Operations Management Important?
  20. 20. Capital Markets, Stockholders Marketing Customers Workers Operations Personnel Purchasing Suppliers Finance
  21. 21. The Overlapping of Three Major Functions • Competitor • Customer preference • Trend of technology
  22. 22. Operational based competitive advantage can be achieved by: *Doing things right the first time - Quality advantage; *Doing things cost effectively - Cost advantage; *Do things fast: Speed advantage;
  23. 23. *Change things quickly: Adaptability-advantage; (ability to change from making Tea, Coffee, etc) - Change operations to meet customer demand for variety. - SME Furniture manufacturer (beds, chairs, tables, sofa). *Do things right every time: Reliability-advantage; - Offer error-free products or services to customers every time. *Do things better: Service-advantage and continuous improvement; (e.g., TQM – all aspects of business important in delivering quality service to customer).
  24. 24. Forecasting Capacity Planning Product and Service Design Technological Change Facilities and Equipment Layout Process Selection Work Design
  25. 25.  Variety  How much  Flexibility Batch  What degree  Volume  Expected output Repetitive Job Shop Continuous
  26. 26.  Job shop/ Unit Production  Batch/ Process Departments  Assembly Line/ Product Departments  Continuous Flow/ Process Industries
  27. 27.  Job shop  Small scale  Batch  Moderate volume  Repetitive/assembly line  High volumes of standardized goods or services  Continuous  Very high volumes of non-discrete goods
  28. 28. Process Type Amount ∞ 0 Job Shop Appliance repair Not feasible Emergency room Commercial bakery Batch Classroom Lecture Automotive assembly Repetitive Automatic carwash Continuous (flow) Not feasible Oil refinery Water purification
  29. 29. Dimension Job variety Very High Moderate Low Very low Process flexibility Very High Moderate Low Very low Unit cost Very High Moderate Low Very low Volume of output Very Low Low High Very High
  30. 30. PROCESS FLOW  UNIT/JOB SHOP One of a Kind, Custom Tools, Buildings, Software, Research Projects, Exclusive Restaurants  BATCH Furniture, Clothes, Most Plastic Parts, Many Photo Shops  MASS Autos, BIC pens, Consumer Electronics, One-Hour Photos, Fast Food Restaurants  CONTINUOUS PROCESS Chemicals, Primary Materials, Petroleum, Lumber
  32. 32. Low Volume One of a Kind I. Job Shop II. Batch III. Assembly Line IV. Continuous Flow Multiple Products, Low Volume Few Major Products, Higher Volume High Volume, High Standardization Flexibility (High) Unit Cost (High) Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery Flexibility (Low) Unit Cost (Low) Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209.
  33. 33.  Flexibility/Variety is Higher  Costs are Higher  OK with low volume markets  OK when high customization is necessary Threats:  A competitor can undercut you  Risky when high volume can be stimulated through price competition
  34. 34.  Costs are lower  Automation is higher  Greater investment Threats:  Greater market risk – what do you do with an automated highly specialized plant when demand decreases?  Competition may match costs with greater product variety.
  35. 35. Types of Service Operations Service Labor Intensive Capital Intensive Automatic Monitored by Unskilled Operators Operated by Skilled Operators Vending machines, automated car washes Movie theaters, taxis, dry cleaners Airlines, medical testing, excavating Unskilled Labor Skilled Labor Professionals Lawn care, janitorial, guards Appliance repair, banks, catering Doctors, lawyers, consultants
  36. 36.  Defining Services - Types of Processes Type Mfg. Example Project Construction, Consulting, Shipbuilding Software Development Sign-making Auto Repair Tailoring Restaurant Automobiles Fast Food Restaurant Appliance Shop Car Wash Job Shop Flow Shop Continuous Process Oil Refinery Cereal Plant Service Example ATMs Police / Fire Service
  37. 37.  Service System Primary Input Conversion Process Desired Output University . Students Knowledge Transmission Educated People Hospital . Patient Health Care Healthy People Restaurant . Customers Food Preparation Satisfied Customers Video Store . Customers Fill Requests Satisfied Customers
  38. 38. Consumer Need Market Research Consumer Acceptance Demand Analysis Product Design Production Design Approved Proposal to Management Approval Sales Cash Sale & Promotion Planning Credit Revenue Reports Not Approved Execute Production Plan and Quality Control Production Planning Approved Purchase of Material Wage & Salary Profits & Reserve
  39. 39. Idea generation Feasibility study/ Advanced product planning Advanced design Detailed engineering design Production process design & development Product evaluation Product improvement Product use & support / After sales services