chapter one introduction to production ppt.ppt
- 1. 1-1 Introduction to Operations Management William J. Stevenson Operations Management 8th edition
- 2. 1-2 Introduction to Operations Management CHAPTER 1 Introduction to Operations Management McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
- 3. 1-3 Introduction to Operations Management Operations Management The management of systems or processes that create goods and/or provide services Organization Finance Operations Marketing Figure 1.1
- 4. 1-4 Introduction to Operations Management Value-Added The difference between the cost of inputs and the value or price of outputs. Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Control Feedback Feedback Feedback Value added Figure 1.2
- 5. 1-5 Introduction to Operations Management Steel production Automobile fabrication Home remodeling Retail sales Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing High percentage goods Low percentage service Goods-service Continuum Low percentage goods High percentage service Figure 1.3
- 6. 1-6 Introduction to Operations Management Food Processor Inputs Processing Outputs Raw Vegetables Cleaning Canned vegetables Metal Sheets Making cans Water Cutting Energy Cooking Labor Packing Building Labeling Equipment Table 1.2
- 7. 1-7 Introduction to Operations Management Hospital Process Inputs Processing Outputs Doctors, nurses Examination Healthy patients Hospital Surgery Medical Supplies Monitoring Equipment Medication Laboratories Therapy Table 1.2
- 8. 1-8 Introduction to Operations Management Production of Goods vs. Delivery of Services Production of goods – tangible output Delivery of services – an act Service job categories Government Wholesale/retail Financial services Healthcare Personal services Business services Education
- 9. 1-9 Introduction to Operations Management Key Differences 1. Customer contact 2. Uniformity of input 3. Labor content of jobs 4. Uniformity of output 5. Measurement of productivity 6. Production and delivery 7. Quality assurance 8. Amount of inventory
- 10. 1-10 Introduction to Operations Management Operations Management includes: Forecasting Capacity planning Scheduling Managing inventories Assuring quality Motivating employees Deciding where to locate facilities And more . . . Scope of Operations Management
- 11. 1-11 Introduction to Operations Management The operations function Consists of all activities directly related to producing goods or providing services
- 12. 1-12 Introduction to Operations Management U.S. Manufacturing vs. Service Employment 0 20 40 60 80 100 45 50 55 60 65 70 75 80 85 90 95 00 Year Percent Year Mfg. Service 45 79 21 50 72 28 55 72 28 60 68 32 65 64 36 70 64 36 75 58 42 80 44 46 85 43 57 90 35 65 95 32 68 00 30 70 Figure 1.4
- 13. 1-13 Introduction to Operations Management Responsibilities of Operations Management Products & services Planning – Capacity – Location – – Make or buy – Layout – Projects – Scheduling Controlling/Improving – Inventory – Quality Organizing – Degree of centralization – Process selection Staffing – Hiring/laying off – Use of Overtime Directing – Incentive plans – Issuance of work orders – Job assignments – Costs – Productivity Table 1.6
- 14. 1-14 Introduction to Operations Management Key Decisions of Operations Managers What What resources/what amounts When Needed/scheduled/ordered Where Work to be done How Designed Who To do the work
- 15. 1-15 Introduction to Operations Management Business Operations Overlap Operations Finance Figure 1.5 Marketing
- 16. 1-16 Introduction to Operations Management Operations Interfaces Public Relations Accounting Industrial Engineering Operations Maintenance Personnel Purchasing Distribution MIS Legal
- 17. 1-17 Introduction to Operations Management Trends in Business Major trends The Internet, e-commerce, e-business Management technology Globalization Management of supply chains Agility