ENGINEERING MANAGEMENT

Muhammad Asif Akhtarimasif@uet.edu.pk

LEARNING OBJECTIVES

Operations Management Supply Chain ManagementEight Dimensions Of QualityTQM Tools And Techniques

How Would You Describe Operations Management?

• The set of management activities used by an organization to transform resource inputs into products, services, or both.

A View of the Transformation Process

InputResources

TheTransformation

ProcessConvertingResources

FinishedProduct

OrService

Why Is Operations Important?

• Efficient and effective operations ensures:– Competitiveness– Overall

organizational performance

– Maintains quality– Maintains

productivity

What Is Manufacturing?

• A form of business that combines and transforms resource inputs into tangible outcomes that are then sold to others.

Can You Define a Service Organization?

• An organization that transforms resources into an intangible output and creates time or place utility for its customers, such as:– Hairdresser– Car leasing– Hotels

What Does the Capacity Decision Involve?

• It involves choosing the amount of products, services, or both that can be produced.

• What are the next determining factors?– The type of facility

required; where the physical location should be.

Organizational Technologies

Automation can be completely or almost completely performed

by machines

Computer-AssistedManufacturing

Relies on computers to

design ormanufacture

products

RoboticsArtificial

devise thatcan perform

functions

A Simple Automatic Control Mechanism

Is It True That Employees Lose Jobs Due to Automation?

• YES, but when?– In the short term.

• What is the truth about the impact of automation on employees?– In the long term more

jobs are created, this is especially true for the electronics industry, the rising demand for products has led to increasing employment.

Service Technology

• Name some examples of technology used in the service industry?– Banking: automatic teller

machines.– Hotels: accepting and

recording room reservations.

– Hospitals: technology to manage patient records.

– Restaurants: to record and fill customer orders.

What Is Supply Chain Management?

• The process of managing operations control.

• Resource acquisition. • Inventory.• What does supply chain management

improve?– Overall efficiency and effectiveness.

What Does Supply Chain Management Include?

TheManufacturer Suppliers Transporters

Warehouses Retailers Customers

It Includes allFunctions

What Is Purchase Management?

• Purchasing management:– Buying the materials and resources

required to produce products and services.• What is a new approach to purchasing?

– Reducing the number of suppliers and negotiating special product-delivery arrangements.

Inventory Management Requires?

• Inventory control.• What are the 4 basic

kinds of control?– Raw materials.– Work in process.– Finished goods.– Products in transit.

A View of JIT: Just-In-Time

Supplier Transporting

Completedfor

Customer

TransformationProcess

Total Quality Management

• What is the meaning of quality?– The totality of features and characteristics

of a product or service that bear on its ability to satisfy stated or implied needs.

• What is needed for TQM?– The cooperation of all levels within the

organization.

What Are the Elements for TQM?

• Strategic commitment.

• Employee involvement.

• Technology.• Materials.• Methods

improvement.

Total Quality Management

TQM Tools and Techniques

• Value-added analysis—what is it?– A comprehensive

evaluation of:• All work activities.• Materials flow.• Paperwork to

determine the value added for customers.

What Is Benchmarking?

• The process of learning how other firms do things in an exceptionally high quality manner.

• What does benchmarking enable firms to do?– To stay abreast of improvements and

changes its competitors are using.

More TQM Techniques:

• Speed:– The time needed to get something accomplished;

it can be emphasized in any area, including developing, making, and distributing products or services.

• ISO 9000:– A set of quality standards created by International

Organization for Standards.• SQC:

– Statistical Quality Control, a set of specific statistical techniques used to monitor quality.

How Would You Define Productivity?

• An economic measure of efficiency that summarizes what is produced relative to resources used to produce a product or service.

• Levels of productivity:– The units of analysis used to calculate or

define productivity.• Forms of productivity:

Productivity =Outputs

Inputs

Why Is Productivity Important?

• It determines the organization’s level of profitability.

• It determines people’s standard of living within a particular country.