Chapter 11 Operations Management in Manufacturing and Service

Chapter Objectives 1. 2. 3. 4. 5. Define operations management, and discuss the role

Chapter Objectives 6. Explain how manufacturing companies use technology to produce and deliver goods

Operations Management “…consists of all activities involved in transforming a product idea into a

The Transformation Process Exploring Business 2. 0 © 2012 Flat World Knowledge 5

Manufacturing “…manufacturers…perform the same basic function: to transform resources into finished goods. ” Operations

Planning: Production Method Decisions v. Make-To-Order v. Mass Production v. Mass Customization Exploring Business

Facilities Decisions • Site Selection • Close to suppliers, customers, or both • Supply

Facility Layout “…how equipment, machinery, and people will be arranged to make the production

Process Layout Exploring Business 2. 0 © 2012 Flat World Knowledge 10

Product Layout Exploring Business 2. 0 © 2012 Flat World Knowledge 11

Cellular Layout Exploring Business 2. 0 © 2012 Flat World Knowledge 12

Materials Management “…encompass(es). . . activities: purchasing, inventory control, and work scheduling. ” Exploring

Purchasing And Supplier Selection üPurchasing üSupplier Selection üE-Purchasing üElectronic Data Interchange Exploring Business 2.

Inventory Control Just-In-Time Material Requirements Planning Manufacturing Resource Planning Exploring Business 2. 0 ©

Work Scheduling Master Production Schedule Gantt Charts PERT Charts Exploring Business 2. 0 ©

Gantt Chart Exploring Business 2. 0 © 2012 Flat World Knowledge 17

PERT Chart Exploring Business 2. 0 © 2012 Flat World Knowledge 18

Technology Of Goods Production : Computer-Aided Design : Computer-Aided Manufacturing : Computer- Integrated Manufacturing

Differences Between Manufacturers and Service Providers óIntangibility óCustomization óCustomer Contact Operational Efficiency. . .

Service Provider Decisions • What services/goods to offer? • How to provide services? •

Operations Planning l. Operations Processes • Make-To-Order • Make-To-Stock l. Facilities • Site Selection

Managing Operations • Scheduling • Inventory Control Exploring Business 2. 0 © 2012 Flat

Quality “…the characteristics of a product or service that bear on its ability to

Quality Management Or Assurance- TQM ? Customer Satisfaction ? Employee Involvement ? Continuous Improvement

Outsourcing • “…having outside vendors manufacture the actual product. ” Exploring Business 2. 0

Outsourcing • Manufacturing • Service Exploring Business 2. 0 © 2012 Flat World Knowledge

Slides: 27

Download presentation

Chapter Objectives 1. 2. 3. 4. 5. Define operations management, and discuss the role of the operations manager in a manufacturing company. Describe the decisions made in planning the production process in a manufacturing company. Describe four major types of facility layouts: process, product, cellular, and fixed position. Identify the activities undertaken by the operations manager in overseeing the production process in a manufacturing company. Explain how to create and use both PERT and Gantt charts. Exploring Business 2. 0 © 2012 Flat World Knowledge 2

Chapter Objectives 6. Explain how manufacturing companies use technology to produce and deliver goods in an efficient, costeffective 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. Exploring Business 2. 0 © 2012 Flat World Knowledge 3

Operations Management “…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. ” Exploring Business 2. 0 © 2012 Flat World Knowledge 4

Manufacturing “…manufacturers…perform the same basic function: to transform resources into finished goods. ” Operations Management: 1. Production Planning 2. Production Control 3. Quality Control Exploring Business 2. 0 © 2012 Flat World Knowledge 6

Facilities Decisions • Site Selection • Close to suppliers, customers, or both • Supply of skilled workers • Quality of life • Resource costs • Business climate • Capacity Planning • Layout Planning Exploring Business 2. 0 © 2012 Flat World Knowledge 8

Technology Of Goods Production : Computer-Aided Design : Computer-Aided Manufacturing : Computer- Integrated Manufacturing : Flexible Manufacturing Systems Exploring Business 2. 0 © 2012 Flat World Knowledge 19

Differences Between Manufacturers and Service Providers óIntangibility óCustomization óCustomer Contact Operational Efficiency. . . Important (to both) Exploring Business 2. 0 © 2012 Flat World Knowledge 20

Service Provider Decisions • 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? Exploring Business 2. 0 © 2012 Flat World Knowledge 21

Quality Management Or Assurance- TQM ? Customer Satisfaction ? Employee Involvement ? Continuous Improvement • Statistical Process Control • Benchmarking ? International Quality Standards • ISO 9000 • ISO 14000 Exploring Business 2. 0 © 2012 Flat World Knowledge 25