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Operations Management 8 TH Edition

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2K views

Operations Management 8 TH Edition

Uploaded by

Elmer John Ballon
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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1-1 Introduction to Operations Management

Operations Management

Wil lia m J. Stevenson

8 th edition
1-2 Introduction to Operations Management

CHAPTER
1

Introduction to 
Operations Management

Operations Management, Eighth Edition, by William J. Stevenson


McGraw-H ill/Irwin Copyright © 2005 by The McGraw-H ill Companies, Inc. All rights reserved.
1-3 Introduction to Operations Management

Operations Management
Figure 1.1

The ma nagement of systems or processes 


thatcreate goods a nd/or provide services

Organization

Finance Operations Marketing


1-4 Introduction to Operations Management

Va lue-Added
Figure 1.2
The difference between the cost of inputs 
a nd the va lue or price of outputs.
Va lue added
Inputs
Transformation/ Outputs
Land
Conversion Goods
Labor
process Services
Capital
Feed back

Control
Feed back Feed back
1-5 Introduction to Operations Management

Goods-service Continuum
Figure 1.3

Steel production Home remodeling Auto Repair Maid Service Teaching


Automobile fa brication Retail sa les Applia nce repair Ma nua l ca r wash Lawn mowing

High percentage goods Low percentage goods


Low percentage service High percentage service
1-6 Introduction to Operations Management

Food Processor
Table 1.2

I nputs Processi ng Outputs


Raw Vegeta bles Clea ning Ca nned 
Meta l Sheets Ma king ca ns vegeta bles
Water Cutting
Energy Cooking
La bor Packing
Building La beling
Equipment
1-7 Introduction to Operations Management

Hospita l Process
Table 1.2

I nputs Processi ng Outputs

Doctors, nurses Exa mination Hea lthy 


Hospita l Surgery patients
Medica l Supplies Monitoring
Equipment Medication
La boratories Thera py
1-8 Production of Goods vs. Delivery of Services
Introduction to Operations Management

 Production of goods – ta ngible output


 Delivery of services – a n act
 Service job categories
 Government
 Wholesa le/retail
 Fina ncia l services
 Hea lthca re
 Persona l services
 Business services
 Education
1-9 Introduction to Operations Management

Key Differences

1. Customer contact
2. Uniformity of i nput
3. La bor content of jobs
4. Uniformity of output
5. Measurement of prod uctivity
6. Prod uction a nd delivery
7. Qua lity assura nce
8. Amount of i nventory
1-10 Introduction to Operations Management

Scope of Operations Management


 Operations Ma nagement i ncl udes:
 Forecasting
 Ca pacity pla nning
 Scheduling
 Ma naging inventories
 Assuring qua lity
 Motivating employees
 Deciding where to locate facilities
 And more . . .
1-11 Introduction to Operations Management

 The operations function


 Consists of a l l activities directly related to
producing goods or providing services
1-12 Introduction to Operations Management

Figure 1.4

Y e a r M fg . S e r v i c e
45 79 21
50 72 28
55 72 28
60 68 32
65 64 36
70 64 36
75 58 42
80 44 46
85 43 57
90 35 65
95 32 68
00 30 70
1-13 Introduction to Operations Management

Responsibilities of Operations Ma nagement


Table 1.6

Pla nning Orga nizing


– Capacity – Degree of centralization
– Location – Process selection
– Products & services Staffing
– Make or buy – H iring/laying off
– Layout – Use of Overtime
– Projects Directing
– Scheduling – Incentive plans
Control ling/I mproving – Issuance of work orders
– Inventory – Job assignments
– Quality
– Costs
– Productivity
1-14 Introduction to Operations Management

Key Decisions of Operations Managers

 What
What resources/what a mounts
 When
Needed/scheduled/ordered
 Where
Work to be done
 How
Desig ned
 Who
To do the work
1-15 Introduction to Operations Management

Business Operations Overla p


Figure 1.5

Operations

Ma rketing Fina nce


1-16 Introduction to Operations Management

Operations I nterfaces
Industrial
Engi neeri ng
Mai ntenance
Distribution

Purchasi ng Public 
Operations Relations

Legal
Personnel

Accounti ng M IS
1-17 Introduction to Operations Management
Trends in Business

 Major trends
 The Internet, e-commerce, e-business
 Ma nagement technology
 Globa lization
 Ma nagement of supply chains
 Agility

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