class 03 - management and decision making
TRANSCRIPT
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7/28/2019 Class 03 - Management and Decision Making
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Operations Management
Management and Decision Making
DecisionMaking
Industrial Engineering
Productivity
Production / operations management is all about management anddecision making in the following areas.
Products / Services
Planning
Capacity
Location
Make or Buy
Layout
Projects
Scheduling
Controlling
Inventory Quality
Organizing
Degree of Centralization
Subcontracting
Staffing Hiring/Laying off
Use of Overtime
Directing
Incentive Plans
Issuance of Work Orders
Job Assignments
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Operations Management
Decision Making
DecisionMaking
Industrial Engineering
Productivity
Quantitative Approaches. Linear programming, queuingtechnique, inventory planning, statistics, forecasting, and PERT(Project Evaluation and Review Technique) / CPM (Critical PathMethod)
Trade-offs. Managers can add weights to reflect the relativeimportance of various factors on listed items.
Systemic Approaches. The output and objectives of a system takeprecedence over those of any one subsystem.
Priorities. Pareto phenomenon: A few factors are very important;many factors are much less important.
Ethics. Safety, quality, environment, and community.
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Operations Management
Decision Making
DecisionMaking
Industrial Engineering
Productivity
All organizations are based on decisionsDecisions follow a similar path
Strategic Decisions - very broad
Strategic Decisions set the direction for the entirecompany; they are broad in scope and long-term innature
Tactical Decisions - focus on
Specific day-to-day issuesResource needs, schedules, & quantities to produce
Tactical decisions are very frequent
Strategic decisions less frequent
Tactical decisions must align with strategic decisions
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Operations Management
DecisionMaking
Industrial Engineering
Productivity
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Operations Management
Decision Making
DecisionMaking
Industrial Engineering
Productivity
System Operations
System Design
Personnel
Inventory Scheduling Project
Management Quality assurance
Capacity
Location
Arrangement of Departments
Product and Service Planning
Acquisition and Placement of Equipment
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Operations Management
Pareto Phenomenon
DecisionMaking
Industrial Engineering
Productivity
A vital few things are important for reaching an objective orsolving a problem.
80/20 Rule - 80% of problems are caused by 20% of the activities
How do weidentify the
vital few?
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Operations Management
DecisionMaking
Industrial Engineering
Productivity
ProductivityIs a measure of process improvement and representsoutput relative to input
ProductivityUnits produced
Input used=
Productivity = Output / ( Labor + material + energy +capital + miscellaneous)
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Operations Management
DecisionMaking
Industrial Engineering
Productivity
Productivity Measures
Partial Output Output Output Outputmeasures Labor Machine Capital Energy
Multifactor Output Outputmeasures Labor + Machine Labor + Capital + Energy
Total Goods or Services Produced
measure All inputs used to produce them
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Operations Management
DecisionMaking
Industrial Engineering
Productivity
Productivity Variables
Labor- contributes about 10% of the annual increaseCapital- contributes about 32% of the annual increaseManagement- contributes about 52% of the annual increase
Competitiveness
How effectively an organization meets the needs ofcustomers relative to others that offer similar goods orservices.