Instructor Lecture PowerPoints


20 Νοε 2013 (πριν από 4 χρόνια και 7 μήνες)

141 εμφανίσεις



Business Essentials, 7




2009 Pearson Education, Inc.

Operations Management and

Instructor Lecture PowerPoints

PowerPoint Presentation prepared by

Carol Vollmer Pope Alverno College

What Does

Mean Today?

Operations (Production)

All the activities involved in making products

goods and services

for customers

Service Operations (Service Production)

Provide intangible and tangible service products

Goods Operations (Goods Production)

Produce tangible products

Operations managers create utility for customers
through production, inventory and quality control.

© 2009 Pearson Education, Inc.

Creating Value Through Operations


The ability of a product to satisfy a want or need

Form utility

Time utility

Place utility

Operations (Production) Management

The systematic direction and control of processes that
transform resources into finished services and goods that
create value for and provide benefits to customers

© 2009 Pearson Education, Inc.

Differences Between Service and Goods
Manufacturing Operations

Goods are
, services are

Service operations differ from manufacturing
operations in that service operations:

Involve interacting with consumers.

Are sometimes intangible and unstorable.

Involve a customer’s presence in the process.

Involve certain service quality considerations.

© 2009 Pearson Education, Inc.

Operations Processes

Operations Process

A set of methods and technologies used to produce
a good or a service

Goods Production Processes

order processes

stock processes

Service Production Processes

Extent of Customer Contact

contact systems: low customer involvement

contact systems: high customer involvement

© 2009 Pearson Education, Inc.

Business Strategy as the

Driver of Operations

Businesses with contrasting business
strategies choose different operations

the activities or processes that
production must

especially well, with
high proficienc

© 2009 Pearson Education, Inc.

TABLE 7.1 Business Strategies That Win
Customers for Four Companies

© 2009 Pearson Education, Inc.

Operations Planning

Capacity Planning

: T
he amount of a product that a
company can produce under normal conditions

Planning deals with determining how much can
be produced

Location Planning

Location affects production costs and flexibility

Planning deals with determining where it will be

© 2009 Pearson Education, Inc.

Operations Planning (cont’d)

Layout Planning

The layout of machinery, equipment, and supplies
determines whether a company can respond
efficiently to demand for more and different
products or whether it finds itself unable to match
competitors’ speed and convenience

Planning deals with determining how the product
will be produced

Process layouts

Product layouts

© 2009 Pearson Education, Inc.

FIGURE 7.1 Operations Planning and Control

© 2009 Pearson Education, Inc.

Quality Planning

What Is Quality?

The combination of “characteristics of a product
or service that bear on its ability to satisfy stated
or implied needs” (American Society for Quality)

Quality planning begins when products are
designed: goals are set for performance and

Quality planning includes deciding what
constitutes a high
quality product and
determining how to measure these quality

© 2009 Pearson Education, Inc.

Methods Planning

Managers identify each production step and
methods for performing it.

They reduce waste and inefficiency by examining
procedures in an approach called

They reduce waste and inefficiency by improving
process flows

A detailed description, often a
process flowchart
, helps
managers organize and record information.

They attempt to improve customer service.

© 2009 Pearson Education, Inc.

Operations Scheduling

Operations Scheduling

Identifying times when specific production
activities will occur

Kinds of Planning Schedules

Master schedule:

Shows which products will be
produced, and when, in upcoming time periods

Detailed schedule:

Shows day
day activities
that will occur in production

Staff schedules:

Show who and how many
employees will be working, and when

Project schedules:

Coordinate completion of
scale projects

© 2009 Pearson Education, Inc.

Project Scheduling

Gantt Chart

Breaks down projects into steps to be performed

Specifies the time required to complete each step

A Project Manager uses the Gantt chart to:

List all activities to be performed

Estimate the time required for each step

Record the progress on the chart

Check the progress against the time scale on the report

© 2009 Pearson Education, Inc.

Figure 7.4 Gantt Chart

© 2009 Pearson Education, Inc.

Operations Control

Operations Control

Requires managers to monitor performance by
comparing results with detailed plans and

Checking to ensure that production
decisions are being implemented

is a key and
ongoing facet of operations.

© 2009 Pearson Education, Inc.

Materials Management

Materials Management

The process by which managers plan, organize,
and control the flow of materials from sources of
supply through distribution of finished goods

Materials Management Activities

Supplier selection




Inventory control

© 2009 Pearson Education, Inc.

Lean Production Systems: Just
Time Operations

Lean Production Systems Goals

Smooth production flows avoid inefficiencies

Elimination of unnecessary inventories

Continuous improvement in production processes

Time (JIT) Production

Bringing together all needed materials only when
they are required, creating fast and efficient
responses to customer orders

© 2009 Pearson Education, Inc.

Benefits of Just
Time Production

Reduces the number of goods in process

(goods not yet finished)

Minimizes inventory costs

Reduces inventory storage space requirements

Replaces stop
go production with

smooth movement

Disruptions are more visible and get resolved

more quickly

Continuous improvement of the process

© 2009 Pearson Education, Inc.

Quality Control

Quality Control

Taking action to ensure that operations produces
products that meet specific quality standards

Requires establishment of specific standards and

© 2009 Pearson Education, Inc.

Quality Improvement and Total Quality Management

Quality Improvement

Building quality into products and services rather than
trying to control quality by inspection

Total Quality Management (TQM)

All of the activities necessary for getting high
quality goods
and services into the marketplace

Quality Ownership

Quality belongs to each person who creates it while
performing a job and it requires a focus on quality by all
parts of an organization

© 2009 Pearson Education, Inc.

Total Quality Management

Always Delivering High Quality

Planning for quality

Organizing for quality

Directing for quality

Controlling for quality

© 2009 Pearson Education, Inc.

Tools for Total Quality Management

Competitive Product Analysis

Analyzing competitors’ products to identify improvements

Added Analysis

Eliminating wasteful and unnecessary activities

Quality Improvement Teams

quality circles

Getting Closer to the Customer

Identifying internal and external customers

ISO 9000 and ISO 14000

Ensuring certification of quality management in processes

Business Process Reengineering

Starting over from scratch to improve processes

© 2009 Pearson Education, Inc.

Adding Value Through Supply Chains

Supply Chain (or Value Chain)

The flow of information, materials, and services
that starts with raw
materials suppliers and
continues adding value through other stages in
the network of firms until the product reaches the
end customer

© 2009 Pearson Education, Inc.

FIGURE 7.5 Supply Chain for Baked Goods

© 2009 Pearson Education, Inc.

The Supply Chain Strategy

Supply Chain Management (SCM)

Working with the supply chain as a whole to
improve overall flow through a system composed
of companies working together

Supply Chain Reengineering

Improving the process for better results:

Lower costs, speedier service, and coordinated flows of
information and material

Outsourcing and Global Supply Chains

Paying suppliers and distributors to perform
certain business processes or to provide needed
materials or services

© 2009 Pearson Education, Inc.