1 Introduction to Operations Management

operations management

- company's ability to compete - nation's ability to compete internationally

operations management

operations management

finance operations marketing

value-added process

value-added

product packages

product packages

raw vegetables metal sheets water energy labor building equipment

cleaning making cans cutting cooking packing labeling

canned vegetables

doctors, nurses hospital medical supplies equipment laboratories

examination surgery monitoring medication therapy

healthy patients

manufacturing

service

manufacturing

manufacturing

service

production of goods

delivery of service

government wholesale or retail financial services healthcare personal services business services education

customer contact uniformity of input labor content of jobs uniformity of output measurement of productivity production and delivery quality assurance amount of inventory evaluation of work ability to patent design

goods low service high

goods high service low

goods low service high

goods high service low

goods tangible service intangible

goods easy service difficult

goods high service low

goods much service little

goods easier service difficult

goods usually service not usual

forecasting capacity planning scheduling managing inventories measuring quality motivating employees deciding where to locate facilities supply chain management

goods producing storage or transportation exchange entertainment communication

farming mining construction manufacturing power generation

warehousing tracking mail service moving taxis buses hotels airlines

retailing wholesaling banking renting leasing library loans

films radio and television concerts recording

newspapers radio and television newscasts telephone satellites

productivity

outsourcing

18 million

70%

20%

what when where how who

what resources or what amounts

needed or scheduled or ordered

work to be done

designed

to do the work

models quantitative approaches analysis of trade-offs systems approach establishing priorities ethics

capacity location arrangement of departments product and service planning acquisition and placement of equipment

personnel inventory scheduling project management quality assurance

models

physical schematic mathematical

trade-off

trade-off

trade off

models are beneficial

models are beneficial

models are beneficial

models are beneficial

models are beneficial

models are beneficial

limitations of models

limitations of models

limitations of models

limitations of models

linear programming queuing techniques inventory models project models statistical models

analysis of trade-offs

increased cost of holding inventory versus level of customer service

the whole is greater than the sum of the parts

pareto phenomen

80/20 rule

pareto phenomenon

financial statements worker safety product safety quality environment community hiring or firing workers closing facilities workers rights

industrial evolution (1770's) scientific management (1911) - mass production - interchangeable parts - division of labor human relations movement (1920-60) decision models (1915, 1960-70's) influence of japanese manufacturers

the internet, e-commerce, e-business management technology globalization management of supply chains outsourcing agility ethical behavior

technology

product and service technology process technology information technology

suppliers direct suppliers producer distributor final consum