operation managment 1
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Iniciacion en direccion de operacionesTRANSCRIPT
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Introduction to Operations
Management
GP40 – Operations Management
Toufik BOUDOUH
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Lecture Outline
• What is Operations Management?
• Operations Function
• Historical Events in Operations Management
• Operations Performance Objectives
• Strategy and Operations
• Processes and technology
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What is operations management?
• Operations management is the activity of managing
the resources which produce and deliver products
and services
– Design, operation, and improvement of productive
systems
• The operations function is the part of the
organization that is responsible for this activity
• Operations managers are the people who have
particular responsibility for managing some, or all, of
the resources which compose the operations
function
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Operations in the organization
• Three core functions:
– the marketing (including sales) function – which is
responsible for communicating the organization’s products
and services to its markets in order to generate customer
requests for service
– the product/service development function – which is
responsible for creating new and modified products and
services in order to generate future customer requests for
service
– the operations function – which is responsible for fulfilling
customer requests for service through the production and
delivery of products and services
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Operations in the organization
• The support functions:
– the accounting and finance function – which provides the
information to help economic decision-making and
manages the financial resources of the organization
– the human resources function – which recruits and
develops the organization’s staff as well as looking after
their welfare
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Operations Management 6
Activities of core functions
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Operations Management 7
relationship between the
operations function and other
core and support functions
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Operations Management 8
Operations management is important in all types of
organization
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What is operations?
• Operations is often defined as a transformation
process
• All operations produce products and services by
changing inputs into outputs using an ‘input-
transformation-output’ process
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Operations as a Transformation
Process
INPUT •Material•Machines•Labor•Management•Capital
TRANSFORMATIONPROCESS
OUTPUT •Goods•Services
Feedback & Requirements
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Operations as a Transformation
Process
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Transformation Process
• Physical: as in manufacturing operations
• Locational: as in transportation or warehouse
operations
• Exchange: as in retail operations
• Physiological: as in health care
• Psychological: as in entertainment
• Informational: as in communication
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Inputs to the process
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Outputs from the process
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Examples of operations and processes
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Operations: Function or Activity?
• we must distinguish between two meanings of
‘operations’
– ‘Operations’ as a function: the part of the organization
which produces the products and services for the
organization’s external customers
– ‘Operations’ as an activity: the management of the
processes within any of the organization’s functions
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Processes in non-operations functions
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Evolution of Operations and Supply
Chain Management
• Craft production– process of handcrafting products or services for individual
customers
• Division of labor– dividing a job into a series of small tasks each performed
by a different worker
• Interchangeable parts– standardization of parts initially as replacement parts;
enabled mass production
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Evolution of Operations and Supply
Chain Management
• Scientific management
– systematic analysis of work methods
• Mass production
– high-volume production of a standardized product for a
mass market
• Lean production
– adaptation of mass production that prizes quality and
flexibility
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Historical Events in Operations
Management
Era Events/Concepts Dates Originator
IndustrialRevolution
Steam engine 1769 James Watt
Division of labor 1776 Adam Smith
Interchangeable parts 1790 Eli Whitney
Scientific Management
Principles of scientificmanagement
1911 Frederick W. Taylor
Time and motion studies 1911 Frank and Lillian Gilbreth
Activity scheduling chart 1912 Henry Gantt
Moving assembly line 1913 Henry Ford
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Historical Events in Operations
Management
Era Events/Concepts Dates Originator
Human Relations
Hawthorne studies 1930 Elton Mayo
Motivation theories1940s Abraham Maslow1950s Frederick Herzberg1960s Douglas McGregor
Operations Research
Linear programming 1947 George DantzigDigital computer 1951 Remington RandSimulation, waitingline theory, decisiontheory, PERT/CPM
1950sOperations research groups
MRP, EDI, EFT, CIM1960s, 1970s
Joseph Orlicky, IBMand others
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Historical Events in Operations
Management
Era Events/Concepts Dates Originator
QualityRevolution
JIT (just-in-time) 1970s Taiichi Ohno (Toyota)TQM (total qualitymanagement)
1980sW. Edwards Deming, Joseph Juran
Strategy andoperations
1980sWickham Skinner, Robert Hayes
Business process reengineering
1990sMichael Hammer,James Champy
Six Sigma 1990s GE, Motorola
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Historical Events in Operations
Management
Era Events/Concepts Dates OriginatorInternet Revolution
Internet, WWW, ERP, supply chain management
1990s ARPANET, TimBerners-Lee SAP,i2 Technologies,ORACLE
E-commerce 2000s Amazon, Yahoo, eBay, Google, and others
Globalization WTO, European Union, and other trade agreements, global supply chains, outsourcing, BPO, Services Science
1990s2000s
Numerous countriesand companies
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Operations performance objectives
• Quality
• Speed
• Dependability
• Flexibility
• Cost
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The quality objective• Quality reduces costs
• Quality increases dependability
• Quality means different things in different
operations
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The quality objective• Quality reduces costs
• Quality increases dependability
• Quality means different things in different
operations
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The quality objective• Quality reduces costs
• Quality increases dependability
• Quality means different things in different
operations
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The speed objective• Speed reduces inventories
• Speed reduces risks
• Speed means different things in different
operations
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The speed objective• Speed reduces inventories
• Speed reduces risks
• Speed means different things in different
operations
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The speed objective• Speed reduces inventories
• Speed reduces risks
• Speed means different things in different
operations
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The dependability objective• Dependability saves time and money
• Dependability means different things in
different operations
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The dependability objective• Dependability saves time and money
• Dependability means different things in
different operations
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The dependability objective• Dependability saves time and money
• Dependability means different things in
different operations
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The flexibility objective
• Product/service flexibility – the operation’s ability to introduce new or modified products and services
• Mix flexibility – the operation’s ability to produce a wide range or mix of products and services
• Volume flexibility – the operation’s ability to change its level of output or activity to produce different quantities or volumes of products and services over time
• Delivery flexibility – the operation’s ability to change the timing of the delivery of its services or products
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The flexibility objective
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• Flexibility means different things in different
operations
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The flexibility objective
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• Flexibility means different things in different
operations
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The flexibility objective
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• Flexibility means different things in different
operations
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The cost objective
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• Low cost is a universally attractive objective
• Cost means different things in different
operations
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The cost objective
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• Low cost is a universally attractive objective
• Cost means different things in different
operations
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The cost objective
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• Low cost is a universally attractive objective
• Cost means different things in different
operations
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Productivity and Competitiveness
• Competitiveness– degree to which a nation can produce goods and services
that meet the test of international markets
• Productivity– ratio of output to input
• Output– sales made, products produced, customers served, meals
delivered, or calls answered
• Input– labor hours, investment in equipment, material usage, or
square footage
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Productivity and Competitiveness
Measures of Productivity
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Strategy and Operations• Strategy
– Provides direction for achieving a mission
• Five Steps for Strategy Formulation– Defining a primary task
• What is the firm in the business of doing?
– Assessing core competencies• What does the firm do better than anyone else?
– Determining order winners and order qualifiers• What qualifies an item to be considered for purchase?
• What wins the order?
– Positioning the firm• How will the firm compete?
– Deploying the strategy
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Policy Deployment
• Policy deployment
– translates corporate strategy into measurable
objectives
• Hoshins
– action plans generated from the policy
deployment process
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Policy Deployment
Derivation of an Action Plan Using Policy Deployment
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Processes and Technology
• Process Planning (selection)
• Process Analysis
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Process Planning
• Process
– a group of related tasks with specific inputs and outputs
• Process design
– what tasks need to be done and how they are coordinated among functions, people, and organizations
• Process strategy
– an organization’s overall approach for physically producing goods and services
• Process planning
– converts designs into workable instructions for manufacture or delivery
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Process Selection
• Projects
– one-of-a-kind production of a product to customer order
• Batch production
– processes many different jobs at the same time in groups or batches
• Mass production
– produces large volumes of a standard product for a mass market
• Continuous production
– used for very-high volume commodity products
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Product-Process Matrix
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Process Plans
• Set of documents that detail manufacturing and
service delivery specifications
– assembly charts
– operations sheets
– quality-control check-sheets
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Operations sheet
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Process Analysis
• Building a flowchart
– Determine objectives
– Define process boundaries
– Define units of flow
– Choose type of chart
– Observe process and collect data
– Map out process
– Validate chart
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Process Flowcharts
• Look at manufacture of product or delivery of
service from broad perspective
• Incorporate
– nonproductive activities (inspection,
transportation, delay, storage)
– productive activities (operations)
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Process Flowchart Symbols
Operations
Inspection
Transportation
Delay
Storage
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Process Flowchart: Example
Process
Flowchart
of Apple
Processing
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