Chapter Eighteen Operations Management
Chapter Eighteen Operations Management
Chapter Objectives(1 of 2) Describe the role of the transformation process in operations management Explain what factors determine organizational productivity Discuss what re-engineering of work processes involves Describe how adding a"manufacturing focus"to organizational strategy affects an organization Identify the four key decisions that provide the long-term strategic direction for operations planning
Chapter Objectives (1 of 2) Describe the role of the transformation process in operations management Explain what factors determine organizational productivity Discuss what re-engineering of work processes involves Describe how adding a “manufacturing focus” to organizational strategy affects an organization Identify the four key decisions that provide the long-term strategic direction for operations planning
Chapter Objectives(2 of 2 Describe the three decisions that make up tactical operations planning Identify the three approaches to maintenance control Explain the contingency factors that affect the implementation of TQM Discuss the advantages and potential problems of just-in-time (JIT)inventory systems Explain how flexible manufacturing systems could give an organization a competitive advantage Describe how speed can be a competitive advantage
Chapter Objectives (2 of 2) Describe the three decisions that make up tactical operations planning Identify the three approaches to maintenance control Explain the contingency factors that affect the implementation of TQM Discuss the advantages and potential problems of just-in-time (JIT) inventory systems Explain how flexible manufacturing systems could give an organization a competitive advantage Describe how speed can be a competitive advantage
The operations System Inputs Outputs People Goods Technology Services Capital Transformation Equipment Materia process Information Figure 19-1
The Operations System Inputs • People • Technology • Capital • Equipment • Material • Information Transformation process Outputs • Goods • Services Figure 19-1
Deming,'s 14 Points for Improving Management's Productivit 1. Plan for the long-term future not for next month or next year 2. Never be complacent concerning the quality of your product 3. Establish statistical control over your production processes and require your suppliers to do so as well 4. Deal with the fewest number of suppliers-the best ones, of course 5. Find out whether your problems are confined to particular parts of the production process or stem from the overall process itself Table 19-1a
Deming’s 14 Points for Improving Management’s Productivity 1. Plan for the long-term future, not for next month or next year. 2. Never be complacent concerning the quality of your product. 3. Establish statistical control over your production processes and require your suppliers to do so as well. 4. Deal with the fewest number of suppliers - the best ones, of course. 5. Find out whether your problems are confined to particular parts of the production process or stem from the overall process itself. Table 19-1a
Deming's 14 Points for Improving Management's Productivity 6. Train workers for the job that you are asking them to perform 7. Raise the quality of your line supervisors 8. Drive out fear 9. Encourage departments to work closely together rather than to concentrate on departmental or divisional distinctions 10. Do not be sucked into adopting strictly numerical goals, including the widely popular formula of zero defect Table 19-1b
Deming’s 14 Points for Improving Management’s Productivity 6. Train workers for the job that you are asking them to perform. 7. Raise the quality of your line supervisors. 8. Drive out fear. 9. Encourage departments to work closely together rather than to concentrate on departmental or divisional distinctions. 10. Do not be sucked into adopting strictly numerical goals, including the widely popular formula of “zero defect.” Table 19-1b
Deming,'s 14 Points for Improving Management's Productivit 11. Require your workers to do quality work, not just to be at their stations from 9 to 5 12. Train your employees to understand statistical methods 13. Train your employees in new skills as the need arises 14. Make top managers responsible for implementing these principles Table 19-1c
Deming’s 14 Points for Improving Management’s Productivity 11. Require your workers to do quality work, not just to be at their stations from 9 to 5. 12. Train your employees to understand statistical methods. 13. Train your employees in new skills as the need arises. 14. Make top managers responsible for implementing these principles. Table 19-1c
Characteristics of services Intangible Can't be stored in inventory Service organizations Produce Services Involve customer or client in actual production Figure 19-2
Characteristics of Services Services Intangible Can’t be stored in inventory Involve customer or client in actual production Service Organizations Produce Figure 19-2
-Decisions Made in Planning Operations Strategic Operations plans Capacity Facilities Facilities Location Process Planning Layout What Planning Planning Planning is to be Which How should How many Where are produced? are to be they to be production equipment and methods are workstations produced? produced? o be used? be arranged? Tactical Operations Plans Aggregate Planning Master Scheduling What's the over- Materials all production Requiremnt How many units of pla plan for all Compre- Planning each product will products? hensive What materials be produced? (Typically for the Operations are needed to (Typically for the year) Plans satisfy the month) master schedule? Figure 19-3
Decisions Made in Planning Operations What is to be produced? How many are to be produced? Where are they to be produced? Which production methods are to be used? How should equipment and workstations be arranged? Capacity Planning Facilities Location Planning Process Planning Facilities Layout Planning Strategic Operations Plans What’s the overall production plan for all products? (Typically for the year) Aggregate Planning How many units of each product will be produced? (Typically for the month) Master Scheduling What materials are needed to satisfy the master schedule? Materials Requireemnts Compre- Planning hensive Operations Plans Figure 19-3
A Process layout at a Medical clinic Neurology Obstetrics/ Gynecology Laboratory Tests Rest Room Patient X-ray Waiting Reception room Area Plastic and Recon Pediatrics structive Surgery Pharmacy Patient enters clinic Patient exits clinic Figure 19-4
A Process Layout at a Medical Clinic Neurology Obstetrics/Gynecology Rest Rooms Reception room Pediatrics Pharmacy X-ray Laboratory Tests Plastic and Reconstructive Surgery Patient enters clinic Patient exits clinic Patient Waiting Area Figure 19-4
