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ISSUES
y ABUBAKARI YAKUBU y QUIZZES y EXAMS y ANY OTHER ISSUES : y RULES OF ENGAGEMENT
Definition
y Operations management is the process of obtaining and utilising resources to produce useful goods and services so as to meet the goals of the organisation
Significant Ev nts in O
Figure 1.3
Contributions From
Human factors Industrial engineering Management science Biological science Physical sciences Information science
New Challenges in OM
From
Local or national focus Batch shipments Low bid purchasing Lengthy product development Standard products Job specialization
To
Global focus JustJust -inin-time Supply chain partnering Rapid product development, alliances Mass customization Empowered employees, teams
Characteristics of Goods
Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction
Characteristics of Service
Intangible product Produced and consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge edge-based Frequently dispersed
understand the fundamentals of operations management. y Information y IT is a tool, and theres no better Technology place to apply it than in operations. y Management y We use so many things you learn in operations managementscheduling, lean production, decision theory, materials management and lots of quality tools.
y Marketing
y Finance
flowcharts and Pareto analysis. y How can you do a good job marketing a product if youre unsure of its quality or delivery status? y Most of our capital budgeting requests are from operations, and most of our cost savings, too.
operations mgt as a result of the need to encompass the rapidly expanding service sector y Operations mgt can be described as mgt of manufacturing and services y Some of the functional sub areas have achieved great importance that they are being explored as distinct subjects of study eg quality mgt, technology mgt, project mgt and ergonomics.
Productivity Challenge
Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital) The objective is to improve this measure of efficiency
Important Note! Production is a measure of output only and not a measure of efficiency
resources at their disposal y Input=Output+Waste y There are two approaches for enhancing productivity a. Increasing productivity Productivity=Output/Input The ratio can be improved in various ways 1. Increasing output while keeping inputs constant 2. Decreasing inputs while keeping output constant 3. Increasing output in greater proportion than increase in input
the environment (comments) y As a result of the increase of production, the environment has been damaged to an extent that the ozone layer is threatened y Various laws have been enacted to control the following pollutants- solid waste, liquid waste, atmospheric waste and noise pollution
vanguard of material progress y It has made life more comfortable and enjoyable y Industrialisation has created the need and awareness of knowledge and information
Intoduction
utilisation of enterprise resources required to produce goods and service y In this competitive environment organisations are compelled to develop strategy which will make them competitive y For achieving this the functional level strategies shd contribute to the coherent strategy of the organisation
their strategy formulation as a result of the following: 1. The production /operations mgr should have the ability to handle the strategic aspects of production/operations mgt consistently 2. Production/operations mgrs rely more on verbal communication and have little interest in written words 3. The production/operations mgrs has the tendency to view themselves as holding a reactive corporate brief
mgt as a short term and reactive to and do not stress the long term nature of this task
the rapid economic change and technological advancement y According to Ogawa production mgt may be defined as the planning, implementation and control of production activities conducted by organisational entity with define performance objectives subject to modifications according to ambient conditions y Production mgt encompasses all the activities right to the end of the production process y The production system which are responsive to rapid changes are capable of reducing the start up period.
Systems Perspective
y Inputs y Transformation System y Alter y Transport y Store y Inspect y Outputs y Environment
Inputs
y Inputs include facilities, labor, capital, equipment, raw
materials, and supplies. y A less obvious input is knowledge of how to transform the inputs into outputs.
consisting primarily of inputs and output does not have the wider connotations involving all phases from technology forecasting to manufacturing y Interrelationship among systems- The closed relationships that exist between production and preproduction arrangements is known as the interrelationships between systems y Stratum Formulation- A production system consisting of various strata of corporate hierarchy wherein each stratum has a role to play
expands it trends to have large number of hierarchical strata each performing specialised functions y Increase of Entropy- according to Ogawa entropy is a measure of the degradation of the matter and the energy in the universe to an ultimate state of inert uniformity. To cope with the rapid changes of technological innovation the organisation as well as production system needs to be rejuvenated. y Insofinality Insofinality is the process of reaching the same goal by different routes. There are different approaches to converting input to output.
Feedback control- In this type of control the output is obtained as a result of input and processing. It is then measured to see if it is in agreement with the goal. If the output is not in agreement with the goal, corrective measures are taken to address the shortfall 2. Feedforward control- In this type of control mechanism, input is checked against pre-specified standards prior to processing as well as output phase. The feedforward control system collects measurement data, compares them against the specification and
1.
mix of varying proportions of the element of production y The production system design must be effective in its overall context y Production system must be designed with both the internal and external factors in mind
Productivity Improvement
y Productivity is a function of the relationship between
input and output y Productivity improvement results when a given output is achieved with less input or a given output is achieved with less input y Productivity is a summary measure of the quantity and quality of work performance with optimal utilisation of scare resources y In order to maximise the output and minimise the input it is necessary to control the whole of production systems
organisation y Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services. y Quality activities are planned and managed into systems and are oriented towards the achievement of complete customer satisfaction
control, quality assurance and total quality control y Quality control is concerned with defect detection by using post-production inspection procedures y Quality assurance systems aim to produce as per design specifications and emphasise defect prevention y Total quality control systems are concerned with cost reduction efforts as a drive towards continual improvement
Defining Quality
y In technical usage, quality can have two meanings: y the characteristics of a product or service that bear on its ability to satisfy stated or implied needs, and y a product or service free of deficiencies
y Producers view
y conformance to requirements (Crosby) y costs of quality (prevention, scrap, warranty) y increasing conformance raises profits
y Governments view
y products should be safe y not harmful to environment
Types of Customers
y External - outside the organization (people who pay
the bills.)
y End-user customers y Manufacturer (OEM) for suppliers.
your work y In many situations, producers have multiple customers and therefore find it useful to identify core customers
identify critical customer attributes and to create a specific link between customer attributes and design parameters y It helps marketing and design to answer three primary question? a. What attributes are critical to our customers? b. What design parameters are important in driving those attributes? c. What should the design parameter targets be for the new design?
product based on their expectations and give them weights according to their importance Establishing critical design parameters that drive system performance Establishing the relationship between customer wants and design parameters Identifying the inter-relationships between the various design parameters to establish trade-offs Focusing on customer perceptions of the companys existing product compared to its competitors
Progress, 1993) An average customer with a complaint tells 9-10 people; if it is resolved he/she only tells 5 people. For every complaint received, there are twenty others that are not reported. It costs 5-10 times more in resources to replace a customer than it does to retain one. Companies spend 95% of service time redressing problems and only 5% trying to figure out what made the customer angry.
of quality. y 2. Top Management must provide leadership and support for all quality initiatives. y 3. Preventing variability is the key to producing high quality. y 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. y 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions
Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems y Customers Quality for the customer as a driving force and central concern. y Culture Shared values and beliefs, expressed by leaders, that define and support quality.
continuous improvements to all functions. y TQM represents an ongoing, continuous commitment to improvement. y The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement
Geneva y ISO tech committee - TC 176 started in 1979 y Standards created in 1987
y To eliminate country to country differences y To eliminate terminology confusion y To increase quality awareness
Standardizing Associations (ISA) y 1946 London - delegates from 25 countries decided to create a new international organization "the object of which would be to facilitate the international coordination and unification of industrial standards y 1947 - ISO began to officially function y 1951 - The first ISO standard was published
y "Standard reference temperature for industrial length
measurement".
management and quality assurance ISO 14000 series provides a similar framework for environmental management Internationally standardized freight containers Standardized paper sizes. Automobile control symbols ISO international codes for country names, currencies and languages
fundamentals and vocabulary y ISO 9001:2000 Quality Management Systems Requirements (required for certification) Management responsibility Resource management Product/service realization
Measurement, analysis, improvement
Unit 4 - Need & Importance of Forecasting Unit 5 - Qualitative methods of Forecasting Unit 6 - Quantitative methods of Forecasting