5. Production Planning and Control UTCC Page 5
ตาราป ระกอบ การเรยน การส อน
ตำ าราห ลก็ใน ก็ารเรยน
• Slide Handout
• William J. Stevenson, Production Operations Management, seventh edition, 2002
ตำ าราอ างอ งใน ก็ารเรยน
ภาษ าไทย (In Thai) :
• รศ.ดร.วิชัย แหวินเพ ชัร,การวิางแผนและควิบ คมการผลต,2543
ภาษ าอังกฤษ (In English) :
• Richard B. Chase, Nicholas J. Aquilano, F. Robert Jacobs, Operations Management for Competitive Advantage,
ninth edition Steven Nahmias, Production and Operations Analysis, fourth edition
• Seetharama L. Narasimhan, Dennis W. CmLeavey, Perter J. Billington, Production Planning and Inventory
Control, second edition
• Lee J. Krajewski, Larry P. Ritzman, Operations Management: Strategy and Analysis, fifth edition
• Jay Heizer, Barry Render, Operations Management, sixth edition
7. Production Planning and Control UTCC Page 7
Production Planning
and Control 1
School of Engineering
The University of the Thai
Chamber of Commerce
8. Production Planning and Control UTCC Page 8
School of Engineering
The University of the Thai Chamber of Commerce
Introduction
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Introduction
• Operations management is the management of process or
systems that create goods and/or provide services. It
encompasses
– Forecasting
– Capacity planning
– Scheduling
– managing inventories
– Assuring quality
– Motivating employees
– Deciding where to locate facilities
– more
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Why are we here?
• OM/PPC activities are at the core of all business
organizations.
• 50% or more of all jobs are in OM/PPC related areas.
• Activities in all of the other areas of business
organizations are all interrelated with OM/PPC activities.
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Functions within business organizations
organization
Finance Operations Marketing Operations
MarketingFinance
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Operations
• Operations function consists of all activities directly related to producing
goods or providing services.
• The operations function is the core of most business organizations.
• The essence of operations function is to add value during the
transformation process
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Finance
• Comprises activities related to securing resources at
favorable prices and allocating those resources
throughout the organization.
– Budgeting. Budgets must be periodically prepared to plan
financial requirements.
– Economic analysis of investment proposals. Evaluation of
alternative investments in plant and equipment requires
inputs from both operations and finance people.
– Provision of funds. The necessary funding of operations and
the amount and timing of funding can be important and even
critical when funds are tight.
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Marketing
• M arketing’s focus is on selling
and/or promoting the goods or
services of an organization.
• Mkt is also responsible for
assessing customer wants and
needs and for communicating
those to operations people and to
design people.
Industrial
engineering
Accounting
distribution
MIS personnel
Public
relations
maintenancepurchasing
operation
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Differentiating features of operations systems
• Degree of standardization
– Standardized output
• Goods: radios, televisions, computers, newspapers
• Services: automatic car washes, taped lectures, commercial airline
service
– Customized output
• Goods: eyeglasses, custom-fitted clothes, window glass
• Services: tailoring, taxi rides, surgery
• Type of operation
• Production of goods versus service operations
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Production of goods versus service operations
• Customer contact
• Uniformity of input
• Labor content of jobs
• Uniformity of output
• Measurement of productivity
• Simultaneous production and delivery
• Quality assurance
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Operations Manager and Decision Making
• Models
• Quantitative approaches
• Analysis of trade-off
• Establishing priorities
• Ethics
– Work safety, product safety, quality, the environment, the
community, hiring and firing workers, closing facilities,
w orkers’rights
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The historical evolution of operations management
• The industrial revolution
• Scientific management
• The human relations movement
• Decision models and management science
• The influence of Japanese manufacturers
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Trends in Business
• Recent Trends
– The Internet and e-business
– Supply Chain Management
• Continuing Trends
– Quality and process improvement
– Technology
– Globalization
– Operations strategy
– Environmental issues
– Corporate downsizing
– Lean production: system that uses minimal amounts of resources to
produce a high volume of high quality goods with some variety
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Case: Wegmans Food Markets
• Premier grocery chains
• Employs over 28,000 people
• Strong reputation for offering its customers high
product quality and excellence service
• Do market research, trial and error,
listening to its customers
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Case: Wegmans Food Markets
Superstore
• Giant 100,000 square foot (double or triple size of average
supermarkets)
• 25-35 checkout lanes
• Fish section, bakery section, film processing, pharmacy, a card
shop, video rentals, flora shops, bulk food department
Produce department
• Replenished 12 times a day
• Farm to market
Meat department
• Full service butcher shop
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Case: Wegmans Food Markets
Ordering
• Each department handles its own ordering
• For seasonal periods, managers often check scanner records to learn what
past demand was during a comparable period
• Typically receive one truckload of goods per day from main warehouse,
peak periods, may receive two truckload
Inventory management
• Departments take a monthly inventory count to verify the amount shown in
the companywide system
• Department receive a periodic report indicating how many days of inventory
the department has on hand.
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Case: Wegmans Food Markets
Employees
• Recognizes the value of good employees.
• Invest on employees to train each new employee
• Learn the importance of good customer service and how to provide it
• Employees are helpful, cheerfully answering customer questions or handling complaints.
• Employees are motivated through a combination of compensation, profit sharing, and
benefits.
Quality
• Private label food item
• Managers are responsible for checking and maintaining product and service quality in their
department
• Employees are encouraged to report problems to managers.
• The customers is offered a choice of a replacement or refund.
• If the item is a Wegmans brand food item, it is then sent to the test kitchen to determine the
cause of the problem
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Discussion
• Briefly describe the term PPC and operation
management
• Identify some of the current trends in PPC and relate
them to recent new items or to personal experience.
• Why are services important? Why is manufacturing
important?
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Discussion
• How do customers judge the quality of a supermarket?
• Indicate how and why each of these factors is important to the
successful operation of a supermarket:
– Customer satisfaction
– Forecasting
– Capacity planning
– Location
– Inventory management
– Layout of the store
– Scheduling
