Introduction

Outlines for Introducing Operations Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Background: Steve Peng ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What is Operations Management ,[object Object],[object Object],[object Object]

Operations Management INPUTS _____________ Labor Materials Technology Capacity VALUE-ADDING ACTIVITIES _________________ Performed with tools, machines, techniques, and human skills OUTPUTS ____________ Goods and/or services Management Process (planning, organizing, staffing, leading, and controlling) embedded in IT infrastructures

Operations in Manufacturing Firm Consumer Retailer Manufacturing Material Flow VISA ® Credit Flow Supplier Supplier Wholesaler Retailer Cash Flow Order Flow Schedules

Operations in Different Firms ,[object Object],[object Object],[object Object],[object Object]

Organizational Charts Airline Operations Ground support equipment Maintenance Ground Operations Facility maintenance Catering Flight Operations Crew scheduling Flying Communications Dispatching Management science Finance & Accounting Accounting Payables Receivables General Ledger Finance Cash control International exchange rates Marketing Traffic administration Reservations Schedules Tariffs (pricing) Sales Advertising

Organizational Charts Manufacturing Operations Facilities: Construction:maintenance Production & inventory control Scheduling: materials control Supply-chain management Manufacturing Tooling, fabrication,assembly Design Product development and design Detailed product specifications Industrial engineering Efficient use of machines, space, and personnel Process analysis Development and installation of production tools and equipment Finance & Accounting Disbursements/credits Receivables Payables General ledger Funds Management Money market International exchange Capital requirements Stock issue Bond issues and recall Marketing Sales promotions Advertising Sales Market research

Organizational Charts Commercial Bank Operations Teller Scheduling Check Clearing Transactions processing Facilities design/layout Vault operations Maintenance Security Finance Investments Security Real Estate Accounting Auditing Marketing Loans Commercial Industrial Financial Personal Mortgage Trust Department

Characteristics of Service Operations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Why Study OM? ,[object Object],[object Object],[object Object],[object Object]

The Role of OM during Business Turbulence

The Hard Rock Cafe ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Top Management’s Goal ,[object Object],[object Object],[object Object],[object Object]

Customer’s Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Business Mission and Operations Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Sample Mission - Merck ,[object Object]

Mission of the Hard Rock Café ,[object Object]

Strategy Process Marketing Decisions Operations Decisions Fin./Acct. Decisions Company Mission Business Strategy Functional Area Functional Area Strategies

Webvan’s Mission and Operations Strategies ,[object Object],[object Object],[object Object]

Notes on Business Mission and Operations Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Concepts for Developing Operations Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Advantage through Operations ,[object Object],[object Object]

Advantage through Operations ,[object Object],[object Object],[object Object],[object Object],[object Object]

Combination of Three Concepts ,[object Object],[object Object],[object Object]

Ten Critical Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Ch. 5 Ch. 6, 6S Ch. 7, 7S Ch. 8 Ch. 9 Ch. 10, 10S Ch. 11,11s Ch. 12, 14, 16 Ch. 3, 13, 15 Ch. 17

Strategic Decisions in OM (Designing Operations) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Strategic Decisions in OM (Managing Operations) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Jobs in Operations Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Significant Events in Operations Management

The Heritage of Operations Management Division of labor (Adam Smith 1776 and Charles Babbage 1852) Standardized parts (Whitney 1800) Scientific Management (Taylor 1881) Coordinated assembly line (Ford/Sorenson/Avery 1913) Gantt charts (Gantt 1916) Motion study (Frank and Lillian Gilbreth 1922 Quality control (Shewhart 1924; Deming 1950) Computer (Atanasoff 1938) CPM/PERT (DuPont 1957)

The Heritage of Operations Management - Continued Material requirements planning (Orlicky 1960) Computer aided design (CAD 1970) Flexible manufacturing system (FMS 1975) Baldrige Quality Awards (1980) Computer integrated manufacturing (1990) Globalization(1992) Internet (1995)

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Productivity Measurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Reasons for Operating Globally ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Examples of Global Operations ,[object Object],[object Object],[object Object],[object Object]

Evolution of Komatsu’s Global Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]

Issues in Global Service Operations ,[object Object],[object Object],[object Object],[object Object],[object Object]

Trade and Tariffs ,[object Object],[object Object],[object Object],[object Object]

Global Integration of Operations ,[object Object],[object Object],[object Object],[object Object]

Considerations in Global Operations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Considerations in Global Operations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Minit-Lube Inc ,[object Object],[object Object],[object Object],[object Object]

Issues in Minit-Lube Inc ,[object Object],[object Object],[object Object],[object Object],[object Object]

Competition Analysis ,[object Object],[object Object],[object Object],[object Object]

Strength and Opportunity vs. Weakness and Threat ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Mission Statement and Potential Competitive Advantage ,[object Object],[object Object]

10 Strategic Operations Decisions in Minit-Lube Inc ,[object Object],[object Object],[object Object],[object Object],[object Object]

Mission, Strategy and Ten OM Decisions in Kaiser Permanent’s New Facility ,[object Object],[object Object],[object Object]

10 Strategic OM Decisions in Kaiser’s New Hospital ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Introduction

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Introduction