1. Operations, Quality, and Productivity

6. Exhibit 14 – 1 ● How Operations Systems Are Classified, Designed, and Managed

14. Exhibit 14 –2 ● Classifying Operating Systems

16. Exhibit 14 –3 ● Throughput Stages

18. Exhibit 14 –4 ● Facility Layout

19. Exhibit 14 –4 ● Facility Layout (cont’d)

28. Exhibit 14 –5 ● Planning Sheet

29. Exhibit 14 –6 ● Gantt Chart (Orders by Week) * Indicates today’s date—the first day of the third week of May. Ends of bars indicate scheduled starting and ending dates of project. The shaded part of the bar indicates the part of the project completed to date, while the blank space to the end of the bar indicates work still to be completed. The GE project is done. The IBM project is right on schedule and should be completed this week. The GM project is behind schedule and should be completed during the fourth week in May. The AT&T project is ahead of schedule and should be completed during the first week of June.

30. Developing a PERT Network 1. List all the activities/events that must be completed to reach the specific objective. 2. Determine the time it will take to complete each activity/event. 3. Arrange the tasks on the diagram in the sequence in which they must be completed. 4. Determine the critical path.

31. Exhibit 14 –7 ● PERT Network

33. Exhibit 14 –8 ● Inventory Control within the Systems Process Just-in-Time Inventory: An inventory method in which necessary parts and raw materials are delivered shortly before they are needed.

39. Exhibit 14 –9 ● Five Rules of Customer Human Relations

42. Statistical Quality Control Steps 1. Set a range that includes the highest and lowest levels of acceptable quality, with the desired standard in the middle. 2. Determine the sampling technique and the frequency of measuring performance. 3. Measure performance and plot it on an SPC chart. 4. Use the exception principle and do nothing if performance is within range, but take corrective action if it is out of control limits.

43. Exhibit 14 – 10 ● Statistical Process Control Chart for 16-Ounce Bags of Lay’s Potato Chips Trend

50. Exhibit 14 – 11 ● Functional Area Ratios

51. Exhibit 14 – 11 ● Functional Area Ratios (cont’d)

53. Exhibit 14 – 12 ● The Balanced Scorecard Source: Based on Robert Kaplan and David Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review, January-February 1996, pp. 75–85.

54. Exhibit 14 – 13 ● Futura Industries’ Balanced Scorecard