Chapter 7 Managing Operations and Improving Quality Power

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Chapter 7 Managing Operations and Improving Quality Power. Point Presentation by Charlie Cook Copyright

Chapter 7 Managing Operations and Improving Quality Power. Point Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved.

“There are many ways of going forward, but only one way of standing still.

“There are many ways of going forward, but only one way of standing still. ” —Franklin D. Roosevelt Copyright © 2005 Prentice Hall, Inc. All rights reserved. 2

Key Topics • Operations and the utility provided by operations processes • Service operations

Key Topics • Operations and the utility provided by operations processes • Service operations vs. goods production • Operations planning • Total quality management tools • The supply chain strategy vs. traditional strategies for coordinating operations Copyright © 2005 Prentice Hall, Inc. All rights reserved. 3

Defining Operations • Service Operations: Ø Produce tangible and intangible services. • Goods Production:

Defining Operations • Service Operations: Ø Produce tangible and intangible services. • Goods Production: Ø Produces tangible products. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 4

Growth in the Goods and Services Sectors Millions of Workers (Billions) 100 Services 80

Growth in the Goods and Services Sectors Millions of Workers (Billions) 100 Services 80 $4, 000 60 $3, 000 40 $2, 000 Copyright © 2005 Prentice Hall, Inc. All rights reserved. 2000 1998 1996 1994 1990 1988 1986 1984 2000 1992 Goods Production $1, 000 1998 1996 1994 1992 1990 1988 Goods Production 1986 1984 20 5

Integration of Global Operations • Technology has pushed operations to become cleaner, faster, and

Integration of Global Operations • Technology has pushed operations to become cleaner, faster, and safer…on a global scale. • The internet has integrated production with global suppliers and customers. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 6

Products and Services Create Utility To Satisfy Human Wants • Time Utility • Place

Products and Services Create Utility To Satisfy Human Wants • Time Utility • Place Utility • Ownership utility • Form Utility Operations managers create utility for customers through production, inventory, and quality control. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 7

Operations Management: A Resource Transformation Process Operations Managers • plan • organize Inputs •

Operations Management: A Resource Transformation Process Operations Managers • plan • organize Inputs • • • land capital human resources material customers information • schedule • control Transformation Activities Copyright © 2005 Prentice Hall, Inc. All rights reserved. Outputs (Goods and Services) 8

Operations Processes Are Methods Used in Production • Goods-Manufacturing: Ø Analytic processes Ø Synthetic

Operations Processes Are Methods Used in Production • Goods-Manufacturing: Ø Analytic processes Ø Synthetic processes • Service Delivery Ø High contact processes Ø Low contact processes Copyright © 2005 Prentice Hall, Inc. All rights reserved. 9

Service Operations Differ Markedly From Manufacturing • Focus on: Ø Performance Ø Process and

Service Operations Differ Markedly From Manufacturing • Focus on: Ø Performance Ø Process and outcome Ø Service characteristics Ø Customer-service link Ø Service quality considerations Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10

Operations Planning Capacity Location Quality Layout § § § Process Product Cellular Copyright ©

Operations Planning Capacity Location Quality Layout § § § Process Product Cellular Copyright © 2005 Prentice Hall, Inc. All rights reserved. Methods 11

Operations Scheduling • Scheduling Goods Operations • Scheduling Service Operations Copyright © 2005 Prentice

Operations Scheduling • Scheduling Goods Operations • Scheduling Service Operations Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12

Operations Control Monitors Results, Which Ensures Performance • Materials managers plan, organize, and control

Operations Control Monitors Results, Which Ensures Performance • Materials managers plan, organize, and control the flow of materials from design through distribution. • Transportation • Warehousing • Purchasing • Supplier Selection • Inventory Control Copyright © 2005 Prentice Hall, Inc. All rights reserved. 13

Tools for Operations Process Control Worker Training Just-in-time Production Systems (JIT) Material Requirements Planning

Tools for Operations Process Control Worker Training Just-in-time Production Systems (JIT) Material Requirements Planning Quality Control Copyright © 2005 Prentice Hall, Inc. All rights reserved. 14

Total Quality Management • Always Delivering High Quality ØPlanning for quality ØOrganizing for quality

Total Quality Management • Always Delivering High Quality ØPlanning for quality ØOrganizing for quality ØDirecting for quality ØControlling for quality Copyright © 2005 Prentice Hall, Inc. All rights reserved. 15

Tools for Total Quality Management Statistical Process Control Quality/Cost Studies ISO 9000 Getting Close

Tools for Total Quality Management Statistical Process Control Quality/Cost Studies ISO 9000 Getting Close to the Customer Process Reengineering Outsourcing Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16

Adding Value Through Supply Chains Grain Flour Bakery Wood Pulp Paper Packager Copyright ©

Adding Value Through Supply Chains Grain Flour Bakery Wood Pulp Paper Packager Copyright © 2005 Prentice Hall, Inc. All rights reserved. Packaged Baked Goods 17

The Supply Chain Strategy Supply Chain Management Working with the supply chain as a

The Supply Chain Strategy Supply Chain Management Working with the supply chain as a whole to improve overall flow. Supply Chain Reengineering Improving the process for better results. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 18

Chapter Review • Explain “operations” and the utility that operations processes provide. • Distinguish

Chapter Review • Explain “operations” and the utility that operations processes provide. • Distinguish service operations from goods production. • Describe the five decision areas involved in operations planning. • Identify the key tools for total quality management. • Explain the supply chain strategy. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 19

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Operations Management Managing Quality Chapter 6 Power PointOperations Management Managing Quality Chapter 6 Power Point
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Operations Management Managing Quality Chapter 6 Power PointOperations Management Managing Quality Chapter 6 Power Point
Operations Management Managing Quality Chapter 6 Power PointOperations Management Managing Quality Chapter 6 Power Point
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