exploring business 2.0 © 2012 flat world knowledge 1 chapter 11: operations management in...
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Exploring Business 2.0 © 2012 Flat World Knowledge
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Chapter 11: Operations Chapter 11: Operations Management in Manufacturing and Management in Manufacturing and
Service IndustriesService Industries
Exploring Business 2.0 © 2012 Flat World Knowledge
Chapter ObjectivesChapter Objectives1. Define operations management, and discuss the
role of the operations manager in a manufacturing company.
2. Describe the decisions made in planning the production process in a manufacturing company.
3. Describe four major types of facility layouts: process, product, cellular, and fixed position.
4. Identify the activities undertaken by the operations manager in overseeing the production process in a manufacturing company.
5. Explain how to create and use both PERT and Gantt charts.
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Chapter ObjectivesChapter Objectives6. Explain how manufacturing companies use
technology to produce and deliver goods in an efficient, cost-effective manner.
7. List the characteristics that distinguish service operations from manufacturing operations.
8. Describe the decisions made in planning the product delivery process in a service company.
9. Identify the activities undertaken to manage operations in a service organization.
10.Explain how manufacturing and service companies alike use total quality management and outsourcing to provide value to customers.
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Exploring Business 2.0 © 2012 Flat World Knowledge
Operations Operations ManagementManagement
“…consists of all activities involved in transforming a product idea into a finished product, as well as those
involved in planning and controlling the systems that produce goods and services.”
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The Transformation The Transformation ProcessProcess
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ManufacturingManufacturing
“…manufacturers…perform the same basic function: to
transform resources into finished goods.”
Operations Management:Operations Management:
1.1. Production PlanningProduction Planning
2.2. Production ControlProduction Control
3.3. Quality ControlQuality Control6
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Planning:Planning:Production Method Production Method
DecisionsDecisionsMake-To-Order
Mass Production
Mass Customization
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Facilities DecisionsFacilities Decisions• Site Selection• Close to suppliers, customers, or both• Supply of skilled workers• Quality of life• Resource costs• Business climate
• Capacity Planning• Layout Planning
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Facility LayoutFacility Layout
“…how equipment, machinery, and people will be arranged to make the
production process...efficient...”
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Materials Materials ManagementManagement
“…encompass(es)... activities: purchasing, inventory control, and
work scheduling.”
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Purchasing And Supplier Purchasing And Supplier SelectionSelection
Purchasing
Supplier Selection
E-Purchasing
Electronic Data Interchange
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Inventory Inventory ControlControl
Just-In-Time
Material Requirements Planning
Manufacturing Resource Planning
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Work SchedulingWork Scheduling
Master Production Schedule
Gantt Charts
PERT Charts
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Technology OfTechnology OfGoods ProductionGoods Production
Computer-Aided Design
Computer-Aided Manufacturing
Computer- Integrated Manufacturing
Flexible Manufacturing Systems
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Differences BetweenDifferences BetweenManufacturers and Service Manufacturers and Service
ProvidersProviders
Intangibility
Customization
Customer Contact
Operational Efficiency...Important (to both)Operational Efficiency...Important (to both)
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Service Provider Service Provider DecisionsDecisions
• What services/goods to offer?• How to provide services?• Where to locate business and what
will it look like?• How to forecast demand for
services?
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Operations Operations PlanningPlanning
Operations Processes
• Make-To-Order
• Make-To-Stock
Facilities
• Site Selection
• Size/Layout
• Capacity Planning
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Managing Managing OperationsOperations
•Scheduling
•Inventory Control
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QualityQuality“…the characteristics of a
product or service that bear on its ability to satisfy stated or implied needs.”
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Quality ManagementQuality ManagementOr Assurance- TQMOr Assurance- TQM
Customer SatisfactionEmployee InvolvementContinuous Improvement
• Statistical Process Control
• Benchmarking
International Quality Standards• ISO 9000
• ISO 14000
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OutsourcingOutsourcing
•“…having outside vendors manufacture the actual product.”
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