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Introduction to the Course
Operations Management
Master Degree CourseIn Management Engineering
Prof. Sergio Cavalieri
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Course objectivesOperations Management course aims to provide the student of the
graduate program in Management Engineering with an understanding of the issues related to the strategic management of
Operations in terms of concepts, methodologies and tools needed to optimize the manufacturing processes both in terms of radical
change and of continuous improvement
Success factors
Breakthrough
approaches
Continuous
improvement
Current
activities
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Educational goalsBy the end of the course, students will acquire
Knowledge related to the methods of analysis, the modeling and simulation techniques of the business processes,
Mastery on how to manage the Production Planning and Control Process, in order to complement the knowledge already acquired during the industrial production management course,
Insight on the role of the industrial services, and in particular on the maintenance activities to support the company operations,
Good theoretical and practical understanding of the lean production techniques: kaizen principles, auto-quality, just in time techniques, and Hoshin
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Management Theory and Practice
The Course includes the alternation of theoreticalsessions with exercises and simulation business casestudies, and at least one industrial visit
It also provides articles related to industrial casestudies to complement the theoretical part.
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Course OrganizationResponsible: Prof. Sergio Cavalieri
Teaching assistants: Dr. Fabiana Pirola – assistant researcher of CELS Center
– Research Group on Industrial Engineering, Logisticsand Service Operations
E-learning: http://elearning8.unibg.it/moodle25
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Lecture Schedule
Lectures are normally scheduled in the following days andhours.
• Tuesday from 2.00 pm to 5.00 pm
• Thursday from 2.00 pm to 4.00 pm
Schedules could be subjected to variations or prolongationsaccording to the specific topic or for logistics reasons.In particular, the lectures given by Prof. Crespo will betaught on Thursday and Fridays afternoon with a 4-hourschedule for each module.
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Course program and calendar - 1
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Date Subject Professor02/10/2014 Role of Operations in manufacturing and service industries Cavalieri07/10/2014 Tutoring - Fundamentals of OM Pirola09/10/2014 Operations Strategy in industrial companies Cavalieri14/10/2014 Operations Strategy in industrial companies Cavalieri
16/10/2014 Innovative operation strategies in Spain. Sample case studies in the service sector and in the textile industry Crespo
17/10/2014 Methods and techniques for maintenance management effectiveness and efficiency Crespo
21/10/2014 Business Process Re-engineering Cavalieri23/10/2014 Methods and tools for Business Process Modeling and Simulation Pirola28/10/2014 Exercises on BPM Pirola30/10/2014 Exercises on BPM Pirola04/11/2014 Simulation Pirola
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Course program and calendar - 2
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Date Subject Professor06/11/2014 Methods and techniques for maintenance management control Crespo07/11/2014 Methods and techniques for maintenance management control Crespo11/11/2014 Industrial Visit Cavalieri, Pirola13/11/2014 Kaizen, polivalence and policompetence Cavalieri18/11/2014 Lean Production: definition and general concepts. Cavalieri20/11/2014 No lecture25/11/2014 VSM (Case study) Cavalieri27/11/2014 VSM (Case study) Cavalieri02/12/2014 Industrial Visit in ABB Cavalieri, Pirola04/12/2014 SMED Cavalieri09/12/2014 Lean Production: Indicators Cavalieri11/12/2014 Lean Production: Indicators (exercise) + Final Lecture Cavalieri16/12/2014 No lecture18/12/2014 No lecture
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Exam RulesThe examination will consist of two parts: Written Oral (based on assignments)
The written exam includes exercises and questions, based on all theOperations Management program (exercise, theory and mandatorypapers).
The oral exam consists of the discussion of the assignments. The assignments can be prepared either individually or by groups
of two students. The assignments must be uploaded on the eLearning platform 1 week
before the written exam (the duedate will be available on the platform) The assignments’ contents and rules will be provided during the course
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Consulting Hours
Prof. Sergio Cavalieri – Office 406 – Tuesday from 9.30 am to 11.30 am (Appointment needed). e-mail: [email protected] Ph. 035-2052384
Ing. Fabiana Pirola – CELS Lab– Monday from 10.30 am to 12.30 am (Appointment needed). e-mail: [email protected] Ph. 035-2052005
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What is Operations Management?
Operations Management is responsible for all activities ofplanning, implementation and improvement of businesssystems that create products and provide services.
It supervises an entire system that produces an asset ordelivers a product or a service.
Operations operate in production systems. They produceproducts, manage quality, create services.They are located in banking systems, hospitals, companies,working with suppliers, customers, and using technology.
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Why should we studyOperations Management?
Education in management Management
Operations
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Systemic vision of business processes
Career Opportunities
Interdisciplinaryapplications
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Systemic Vision
Procurement Production Order delivery
Collectionand order
entry
Create delivery
Transport.planning
VehicleReceiving
Picking and delivery output
TransportPromotion Billing
AvailabilityControl
PriceControl
Master data setControl
CreditControl
Primary processes
Demand satisfaction
Support process
Case: Active Cycle – Expedite an order
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…to a complex logistics system
Volkswagen Logistics Network
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Education in management disciplines
Finance / AccountingProduction and Inventory data
Capital budgeting request
Capacity expansion and technology plans
Budgets
Cost Analysis
Capital investments
Stockholder requirements
Personnel needs
Skill sets
Performance evaluations
Job design
Work measurement
Hiring/firing
Training
Legal requirement
Union contractNegotiations
Human Resources
Sup
plie
rs
Orders for Materials
Production and Delivery schedules quality requirements Design/performance Spec
Material available
Quality data
Delivery Schdules
Design
Marketing
Product /service available
Lead – time estimates
Status of order
Delivery Schedules
Sales Forecast
Customers Orders
Customer feedback
Promotions
Operations
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Interdisciplinary applications
WSM
WDP
DP
WOM
OPS
AATP
PPATP
DMO
eXecute!
Aggregate demand planning
Aggregate production & purchase &distribution planning
Production todemand allocation
(AATP)
Order quotingwith ATP
Product & Processdevelopment
Marketing and/or customers
Searching & qualifing suppliers
Collaborative sourcing(contract definition)
Detailed production & purchase & distribution planning & scheduling
Production & purchasescheduling
Distributionscheduling
Order quotingwith CTP
Collaborative ordering(order launching/
dispatching)
Distributeb demand planning(local area/channel)
Collaborative ordering(order launching/
dispatching)
Supp
liers
/sub
cont
ract
ors
Collaborativedelivering
(order replanning)
Order tracking & monitoring
Agents/commercial partners
Custom
ers/distributors
Collaborativereplanishment
Collaborative sourcing(contract definition)
Shop floor control Order tracking & monitoring
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Management; 3%Gestione della qualità;
13%
Produzione; 10%
Informatica; 8%
Responsabile altre mansioni; 10%
Banche - Consulenza finanziaria; 8%
Controllo di gestione; 4%
nsegnamento; 3%
Impiegato altre mansioni; 13%
Altro; 1%
Logistica; 13%
Commerciale - marketing; 6%
Progettazione; 7%
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Career OpportunitiesMain areas of graduate employment in Management
Engineering at Politecnico of Milan
(fonte AIP-IARD )
The first job after graduation (Politecnico)
Main areas of graduate employment in Management Engineering at University of Bergamo
Major industries (UNIBG)Informatica e servizi
annessi; 11%
Industria altro; 25%
Industria metalmeccanica; 33%
Industria macchine elettriche, ottiche ed
elettroniche; 2%
Altro; 14%
Industria costruzioni; 4%
Credito, assicurazioni, interm. finanziaria; 6%
Commercio ecc. 6%
Article Corriere Article Italia Oggi
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The ten main dutiesof an Operations Manager
Product/Service planning design Business process (re-)engineering Factory Lay-out Planning Human Resources Management Supply Chain Management Inventory management Production planning and control Industrial Asset Management Quality Management
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What is a production system ?
A production system is traditionally defined as a system that uses resources to transform inputs into desired output
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Transformation Processes
Physical processes (ex. manufacturing) Localization processes (ex. transport) Trade processes (ex. trading retail) Storage processes (ex. goods warehouse) Human-related processes (ex. health care); Information processes (ex. telecommunications).
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Produce to serve
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“The line between manufacturing and services is blurred”The Economist
Extended productObject that integrates the key features of a tangible product. It's also aset of services that contribute to highlight its properties and to diversifythe supply on the market.
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The variety of services to support the life cycle of a product
Source: Thoben et al. (2002)
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The effect on management policies
source Thoben et al. (2002)
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«Production» in a hospital
Fonte: iBMG – Erasmus University
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Managing Operations in a hospital
Fonte: iBMG – Erasmus University
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The organization chart of OM
The company brings together its own manufacturing operations usually needed to carry the product in one area or function.
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OM in Corporate Services
In service businesses, operations pervade the wholeorganization:
in an airline company managing reservation is part ofthe process of operations, although the departmentis specifically dedicated to operations;
This is most visible in the banking system, whichoften provide a "production unit" both at the counterof commercial services and at the counter ofconventional services.
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Decision levers available to OM
sourcesourceSupplierCustomer
PERFORMANCE MEASUREMENT
SUPPLY CHAIN PLANNING
OPERATIVE LOGISTICS
stockstockmakemake deliverdeliver
SUPPLY -CHAIN CONFIGURATION
CUSTOMER SERVICE
STRATEGY
Strategic level
DemandInventoryDistributionProductionSupply
Tactical level
Execution level
Dec
isio
nLe
vel
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