operations management in manufacturing and service industries chapter 11
TRANSCRIPT
OPERAT
IONS
MANAGEMENT IN
MANUFACTU
RING A
ND
SERVICE IN
DUSTRIE
S
CH
AP
TE
R 1
1
Operations Management
The value-creation activities that convert a company’s inputs into finished goods and services.
Materials Management
The set of activities that control the flow of resources into and out of a firm’s operating system.
Creating a competitive advantage
Production Operation Systems
Make-to-Order
Alden Restaurant Furniture
Production Operation Systems
Mass Production
X-Box
Production Operation Systems
Mass Customization
Sears Optical
Facility Layouts
Arranging the product process as efficiently as possible.
Process layout: Grouping people by task; specialized equipment used to perform tasks.
Product layout: Products produced by people arranged in an assembly line.
Cellular layout: Small teams handle all aspects of production (e.g., construction, plumbers, or electricians)
Tyco’s factory layout
Bread factory layout
Furniture factory layout
Keeping track of production schedules
Gantt chart
Vermont Teddy Bear
Keeping track of production schedules
Start
Cut material for cloth (10 min.)
Sew clothes (10 min.)
Embroider T-shirt (10 min.)
Dress bear (15 min.)
Package bear (5 min.)
Ship bear (5 min.)
Cut fur (10 min.)
Stuff fur (30 min.)
Cut accessories (5
min.)
Sew accessories (10
min.)
PERT Chart: How long does it take to make a teddy bear?
Keeping track of production schedules
Start
Cut material for cloth (10 min.)
Sew clothes (10 min.)
Embroider T-shirt (10 min.)
Dress bear (15 min.)
Package bear (5 min.)
Ship bear (5 min.)
Cut fur (10 min.)
Stuff fur (30 min.)
Cut accessories (5
min.)
Sew accessories (10
min.)
PERT Chart: How long does it take to make a teddy bear?
Critical Path: The longest path
Service Blueprint Components
Blueprint for Overnight Hotel Stay ServiceS
UP
PO
RT
PR
OC
ES
SC
ON
TAC
T P
ER
SO
N
(Bac
k S
tage
)(O
n S
tage
)
CU
ST
OM
ER
Hotel ExteriorParking
Cart for Bags
DeskRegistrationPapersLobbyKey
ElevatorsHallwaysRoom
Cart for Bags
RoomAmenitiesBath
Menu DeliveryTrayFoodAppearance
Food BillDeskLobbyHotel ExteriorParking
Arriveat
Hotel
Give Bagsto
BellpersonCheck in
Go toRoom
ReceiveBags
SleepShower
CallRoom
Service
ReceiveFood
EatCheck out
andLeave
Greet andTakeBags
ProcessRegistration
DeliverBags
DeliverFood
ProcessCheck Out
Take Bagsto Room
TakeFoodOrder
RegistrationSystem
PrepareFood
PH
YS
ICA
LE
VID
EN
CE
Line of Interaction
Line of Visibility
Line of Internal Interaction
RegistrationSystem
Total Quality Management (TQM)
Continuous improvement of the product process by increasing the quality of product and lowering operating costs.
Key components of TQM
• Involve top management• Employee involvement• Focus on customer satisfaction• Continuous improvement