Lecture Fundamentals of operations management (4/e): Chapter 1 - Davis, Aquilano, Chase

Chapter 1 - Introduction to operations management. After studying this chapter you will be able to: Introduce and define operations management (OM) in terms of its contribution and the activities it involves, describe how operations contributes to the overall betterment of society, present operations as a function that addresses issues in both manufacturing and services,...

Trang 1

Introduction to Operations Management

© The McGraw-Hill Companies, Inc., 2003

chapter 1

DAVIS AQUILANO CHASE

PowerPoint Presentation by Charlie Cook

Trang 2

Management 4e

• Present operations as a function that addresses

issues in both manufacturing and services

• Show how operations management is gaining more recognition both internally and externally to an

organization

Trang 3

Management 4e

1–3

Chapter Objectives (cont’d)

• Demonstrate how the operations management

function interacts with the other functional areas within

an organization

• Present a brief history of operations management as a field and its evolution to its current role in an

organization

Trang 4

Management 4e

1–4

Managerial Issues

• Shift in balance of power to consumers

–Globalization of business and markets

–E-commerce

• Achieving higher levels of productivity

–Creating higher quality products

–Delivering better customer service

–Achieving shorter delivery times

–Reducing labor and material costs

Trang 5

Management 4e

1–5

What Is Operations Management?

• Operations Management

–Management of the conversion process which

transforms inputs such as raw material and

labor into outputs in the form of finished goods and services.

Trang 6

Management 4e

1–6

Role of OM within an Organization

Exhibit 1.1

Trang 7

Management 4e

• Efficient scheduling of

resources –Operational planning

and control (short-range)

• Immediate tasks and

activities

Trang 8

Management 4e

1–8

An OperationalLevel OM Perspective

• OM’s function focuses on adding value

through the transformation process

(technical core) of converting inputs into

Trang 9

Management 4e

1–9

The Transformation Process within OM

Exhibit 1.2

Trang 10

Management 4e

1–10

InputTransformationOutput Relationships for Typical Systems

Exhibit 1.3

Trang 11

Management 4e

1–11

OM’s Contributions to Society

• Higher Standard of Living

–Ability to increase productivity

–Lower cost of goods and services

• Better Quality Goods and Services

–Competition increases quality

• Concern for the Environment

–Recycling and concern for air and water quality

• Improved Working Conditions

–Better job design and employee participation

Trang 12

Management 4e

1–12

Annual Change in Productivity in the United States (19802000)

Exhibit 1.4

Source: Economic Report of the President, United States

Government Printing Office, Washington, DC January, 2001.

Trang 13

Management 4e

Source: The World Factbook 2000, Central

Intelligence Agency, Washington, DC.

Trang 14

Management 4e

1–14

Good

The Emergence of OM

• Application of OM to Service Operations

–Batch cooking operations at McDonald’s

–Just-in-Time (JIT) at Northern Telecomm, Inc –Automatic inventory replenishment at Wal-Mart

Trang 15

Management 4e

Source: Handbook of U.S Labor Statistics, edited by Eva E Jacobs,

Fifth Edition, Bernan Press, 2001, Table 2-1, pp 161–164.

Trang 16

Management 4e

1–16

16

Differences Between Goods and Services

• Goods

–Tangible –Can be

inventoried

–No interaction

between customer and process

• Services

–Intangible –Cannot be

inventoried

–Direct interaction

between customer and process

Exhibit 1.7

Trang 17

Management 4e

Trang 18

Management 4e

Trang 19

Management 4e

1–19

A New Paradigm for OM

• Post-War U.S Dominance in Manufacturing

–Available capacity built to support the war effort –Pent-up demand for consumer goods

–Destruction of overseas production capabilities

• Proactive Operations Function (Skinner)

–Add value to products, increase profit margins –Compete on dimensions other than costs:

• Quality

• Speed of delivery

• Process flexibility

Trang 20

Management 4e

1–20

The EverChanging World of OM

• Increased Global Competition

–Transformation into a global economy

–Pressure to excel on multiple competitive

dimensions

–Increased emphasis on logistics

• Advances in Technology

–Information technology (IT)

–Internet email and commerce (B2B)

–Automation and robotics

Trang 21

Management 4e

1–21

Ford’s Global Network to Supportthe Manufacturing of the Escort

Source: From Joseph E Stiglitz, Principles of Micro-economics, 2nd ed

Trang 22

Management 4e

–The process was often more efficient than input

and distribution processes.

–Productivity was maximized when processes

operated at continuous rates.

–Process management skills were different from

those of other functional activities.

Trang 23

Management 4e

–Lack of communication between customers and

the shop floor for problem solving.

• Value Chain

–Steps an organization requires to produce a

good or a service regardless of where they are performed.

Trang 24

Management 4e

1–24

The Value Chain and Its Support Functions

Exhibit 1.10

Trang 25

Management 4e

1–25

Line and Staff Jobs in OM

Exhibit 1.11

Trang 26

Management 4e

1–26

Inputs Provided by OM to Other Functional Areas

Exhibit 1.12

Trang 27

Management 4e

–Whitney’s standardized gun parts in 1801.

–Industrial Revolution began at mid-century.

Trang 28

Management 4e

1–28

Historical Development of OM (cont.)

• Scientific Management (Frederick W Taylor)

–Systematic approach to increasing worker

productivity through time study, standardization

of work, and incentives.

–Viewed workers as an interchangeable asset.

• Other Management Pioneers

–Frank and Lillian Gilbreth

• Motion study and industrial psychology

–Henry L Gantt

• Scheduling and the Gantt chart

Trang 29

Management 4e

1–29

• Moving Assembly Line (1913)

–Labor specialization reduced assembly time.

• Hawthorne Studies

–Yielded unexpected results in the productivity of

Western Electric plant workers after changes in their production environment.

–Led to recognition of the importance of work

design and employee motivation.

Trang 30

Management 4e

1–30

• Operations Research (Management Science)

–Outgrowth of WWII needs for logistics control

and weapons-systems design.

–Seeks to obtain mathematically optimal

(quantitative) solutions to complex problems.

• OM Emerges as a Field

–1950–1960, OM moved beyond industrial

engineering and operations research to the view

of the production operation as a system.

Trang 31

Management 4e

1–31

• OM Emerges as a Field

–1950–1960, OM moved beyond industrial

engineering and operations research to the view

of the production operation as a system.

• The Marriage of OM and IT

–Integrated solutions approaches

• Business process reengineering

• Supply chain management

• Systems integration (SAP)

Trang 32

Management 4e

1–32

• Operations Management in Services

–OM concepts can apply to both manufacturing

and service operations.

• Integration of Manufacturing and Services

–Conducting world class operations requires

compatible manufacturing and service

operations.

Định dạng
Số trang	32
Dung lượng	1,11 MB