Académique Documents
Professionnel Documents
Culture Documents
1 Productivity
Operations Marketing
Finance
Teller Scheduling Loans Human Resources
Investments
Check Clearing Commercial Recruitment
Security
Collection Industrial Job evaluation
Real estate
Transaction processing Financial Performance evaluation
Accounting
Facilities design/layout Personal Wage and Salary Adm.
Auditing
Vault operations Mortgage Personnel records
Operations
Finance/ accounting Human Resources
Facilities Disbursements/
Construction; maintenance credits Recruitment
Production and inventory control Receivables
Scheduling; materials control Marketing
Payables Job evaluation
Quality assurance and control
Supply-chain management General ledger Sales
Manufacturing Funds Management promotion Performance evaluation
Tooling; fabrication; assembly Money market
Design
International
Advertising
Product development and design Sales Wage and Salary Adm.
Detailed product specifications exchange
Industrial engineering Capital requirements Market research Personnel records
Efficient use of machines, space, Stock issue
and personnel
Bond issue
Process analysis
Development and installation of and recall
production tools and equipment
Table 1.1
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1-9
What Operations
Managers Do
Basic Management Functions
Planning
Organizing
Staffing
Leading
Controlling
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1 - 10
Ten Critical Decisions
Ten Decision Areas Chapter(s)
1. Design of goods and services 5
2. Managing quality 6, Supplement 6
3. Process and capacity 7, Supplement 7
design
4. Location strategy 8
5. Layout strategy 9
6. Human resources and 10
job design
7. Supply-chain 11, Supplement 11
management
8. Inventory, MRP, JIT 12, 14, 16
9. Scheduling 13, 15
10. Maintenance 17 Table 1.2
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1 - 11
The Critical Decisions
1. Design of goods and services
What good or service should we
offer?
How should we design these
products and services?
2. Managing quality
How do we define quality?
Who is responsible for quality?
Figure 1.2
Figure 1.3
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1 - 18
The Heritage of OM
Division of labor (Adam Smith 1776;
Charles Babbage 1852)
Standardized parts (Whitney 1800)
Scientific Management (Taylor 1881)
Assembly line (Ford/ Sorenson 1913)
Gantt charts (Gantt 1916)
Motion study (Frank and Lillian Gilbreth
1922)
Quality control (Shewhart 1924; Deming
1950)
Turkey
Germany
Japan
Spain
Canada
China
Czech Rep
Russian Fed
Hong Kong
France
Mexico
UK
South Africa
US
Australia
Agriculture 8.8%
Industry 25.7%
Services 65.5%
1 - 25
Goods and Services
Automobile
Computer
Installed carpeting
Fast-food meal
Restaurant meal/auto repair
Hospital care
Advertising agency/
investment management
Consulting service/
teaching
Counseling
100% 75 50 25 0 25 50 75 100%
| | | | | | | | |
Figure 1.5
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1 - 27
Changing Challenges
Traditional Reasons for Current
Approach Change Challenge
Low cost Public sensitivity to Environmentally
production, environment; ISO 14000 sensitive
with little standard; increasing production; green
concern for disposal costs manufacturing;
environment; sustainability
free
resources
(air, water)
ignored
Low-cost Rise of consumerism; Mass
standardized increased affluence; customization
products individualism
Figure 1.5
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1 - 28
Changing Challenges
Traditional Reasons for Current
Approach Change Challenge
Emphasis on Recognition of the Empowered
specialized, employee's total employees;
often manual contribution; knowledge enriched jobs
tasks society
“In-house” Rapid technological Supply-chain
production; change; increasing partnering; joint
low-bid competitive forces ventures,
purchasing alliances
Large lot Shorter product life Just-In-Time
production cycles; increasing need performance;
to reduce inventory lean; continuous
improvement
Figure 1.5
© 2011 Pearson Education, Inc. publishing as Prentice Hall 1 - 29
New Trends in OM
Ethics
Global focus
Environmentally sensitive production
Rapid product development
Mass customization
Empowered employees
Supply-chain partnering
Just-in-time performance
Important Note!
Production is a measure of output
only and not a measure of efficiency
1 - 32
Efficiency Versus
Effectivenes
For example, if a company is not doing
well and they decide to train their
workforce on a new technology. The
training goes really well - they train all
their employees in avery short time and
tests show they have absorbed the
training well. But overall productivity
doesn't improve. In this case the
company's strategy was efficient but not
effective.
1 - 33
The Economic System
Inputs Transformation Outputs
Feedback loop
Figure 1.6
1,000
= = 4 units/labor-hour
250
0
10 15 20 25 30 35
Percentage investment
1 - 52