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Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Beni AsllaniBeni Asllani
University of Tennessee at ChattanoogaUniversity of Tennessee at Chattanooga
Operations and CompetitivenessOperations and Competitiveness
Operations Management - 5th EditionOperations Management - 5th Edition
Chapter 1Chapter 1
Roberta Russell & Bernard W. Taylor, IIIRoberta Russell & Bernard W. Taylor, III
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-22
Lecture OutlineLecture Outline
What Do Operations Managers Do?What Do Operations Managers Do? Operations FunctionOperations Function Evolution of Operations ManagementEvolution of Operations Management Operations Management and E–businessOperations Management and E–business Globalization and CompetitivenessGlobalization and Competitiveness Primary Topics in Operations ManagementPrimary Topics in Operations Management Learning Objectives for this CourseLearning Objectives for this Course
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-33
What Do Operations Managers What Do Operations Managers Do? Do? (design, operate, and improve production system)(design, operate, and improve production system)
What is Operations?What is Operations? a function or system that transforms inputs into a function or system that transforms inputs into
outputs of greater value outputs of greater value ( role is to create value)( role is to create value)What is a Transformation Process?What is a Transformation Process?
a series of activities along a a series of activities along a value chain value chain extending from supplier to customer.extending from supplier to customer.
activities that do not add value are superfluous activities that do not add value are superfluous and should be eliminatedand should be eliminated
What is Operations Management?What is Operations Management? design, operation, and improvement of design, operation, and improvement of
productive systemsproductive systemsOperations Management includes organizing work , selecting process, Operations Management includes organizing work , selecting process, arranging layouts, locating facilities, designing jobs, measuring performance, arranging layouts, locating facilities, designing jobs, measuring performance, controlling quality , scheduling work, managing inventory and planning controlling quality , scheduling work, managing inventory and planning productionproduction. . The Operations Manager needs good technical , conceptual and behavioral The Operations Manager needs good technical , conceptual and behavioral skill. Operation is to transform inputs into outputs with value addition ; e.g. inputs are skill. Operation is to transform inputs into outputs with value addition ; e.g. inputs are converted into outputs ( products/ services) with added value- not sum of the inputs. converted into outputs ( products/ services) with added value- not sum of the inputs.
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-44
Physical: Physical: as in manufacturing operationsas in manufacturing operations Locational: Locational: as in transportation operationsas in transportation operations Exchange: Exchange: as in retail operationsas in retail operations Physiological: Physiological: as in health careas in health care Psychological: Psychological: as in entertainmentas in entertainment Informational: Informational: as in communicationas in communication
Transformation Process ( Transformation Process ( Input- transformation- Input- transformation- out put process - characteristic of a wide variety of operating systems.)out put process - characteristic of a wide variety of operating systems.)
Automobile industry : Steel sheet is formed in different shapes , painted and finished, and then assembled with many component parts to produce a working automobile. In hospital , patients are helped to become healthier through special care , meal, medicine, surgical procedure etc.
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-55
INPUT •Material•Machines•Labor•Management•Capital
TRANSFORMATIONPROCESS
OUTPUT •Goods•Services
FeedbackFeedback
Operations as a Operations as a Transformation ProcessTransformation Process
Requirements
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Operations Function( Operations Function( Operations : Technical Operations : Technical core or hub of the organization, interacting with other functional areas core or hub of the organization, interacting with other functional areas and suppliers to produce products/services for the customers)and suppliers to produce products/services for the customers)
OperationsOperations MarketingMarketing Finance and Finance and
AccountingAccounting Human Human
ResourcesResources Outside Outside
Suppliers Suppliers Firm’s 4 primary functional area : Marketing, finance , operations, HR
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-77
How is Operations Relevant to my How is Operations Relevant to my Major?Major?
AccountingAccounting
Information Information TechnologyTechnology
ManagementManagement
““As an auditor you must As an auditor you must understand the fundamentals of understand the fundamentals of operations management.”operations management.”
““IT is a tool, and there’s no better IT is a tool, and there’s no better place to apply it than in operations.” place to apply it than in operations.”
““We use so many things you learn We use so many things you learn in an operations class—scheduling, in an operations class—scheduling, lean production, theory of lean production, theory of constraints, and tons of quality constraints, and tons of quality tools.”tools.”
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-88
How is Operations Relevant to my How is Operations Relevant to my Major?Major?
EconomicsEconomics
MarketingMarketing
FinanceFinance
““It’s all about processes. I live It’s all about processes. I live by flowcharts and Pareto by flowcharts and Pareto analysis.”analysis.”
““How can you do a good job How can you do a good job marketing a product if you’re marketing a product if you’re unsure of its quality or delivery unsure of its quality or delivery status?”status?”
““Most of our capital budgeting Most of our capital budgeting requests are from operations, requests are from operations, and most of our cost savings, and most of our cost savings, too.”too.”
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Evolution of Operations Evolution of Operations Management (Management (began during industrial revolution in began during industrial revolution in 1700s)1700s)
Craft productionCraft production process of handcrafting products or services for process of handcrafting products or services for
individual customers individual customers ( every piece, unique, hand –fitted , and made by ( every piece, unique, hand –fitted , and made by individual person- craft production still exists)individual person- craft production still exists)
Division of laborDivision of labor dividing a job into a series of small tasks each dividing a job into a series of small tasks each
performed by a different workerperformed by a different worker( specialization of worker on ( specialization of worker on limited, repetitive tasks, make him specialized in these tasks) limited, repetitive tasks, make him specialized in these tasks)
Interchangeable partsInterchangeable parts standardization of parts initially as replacement parts; standardization of parts initially as replacement parts;
enabled mass productionenabled mass production( e.g. watch, clock, sewing M/C- ( e.g. watch, clock, sewing M/C- resulting in volume production of standardized parts, resulting in volume production of standardized parts, requiring a standard method of production with inspection/ requiring a standard method of production with inspection/ measurement system).measurement system).
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1010
Scientific management Scientific management ( approaching management of work as ( approaching management of work as science through measurement/ analysis- applied by Henry Ford for reducing time for car science through measurement/ analysis- applied by Henry Ford for reducing time for car assembly) assembly) systematic analysis of work methods ( systematic analysis of work methods ( identification identification
of the best method of performing and of the best method of performing and standardizing this for each workmanstandardizing this for each workman))Mass ProductionMass Production
high-volume production of a standardized product for a high-volume production of a standardized product for a mass market mass market ( can not adapt well to demand changes( can not adapt well to demand changes))
Lean production Lean production ( developed in Japan using concept like JIT)( developed in Japan using concept like JIT) adaptation of mass production that prizes quality adaptation of mass production that prizes quality (rather (rather
than quantity) , than quantity) , and flexibilityand flexibility (rather than efficiency) (rather than efficiency) - - ( this ( this reducing/ eliminating all kind of wastes) reducing/ eliminating all kind of wastes)
Evolution of Operations Evolution of Operations Management (cont.)Management (cont.)
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Historical Events in Historical Events in Operations ManagementOperations Management
Era Events/Concepts Dates Originator
Industrial
Revolution
Steam engine 1769 James Watt
Division of labor 1776 Adam Smith
Interchangeable parts 1790 Eli Whitney
Scientific Management
Principles of scientific
management1911 Frederick W. Taylor
Time and motion studies 1911Frank and Lillian Gilbreth
Activity scheduling chart 1912 Henry Gantt
Moving assembly line( conveyor belt assembly concept)
1913 Henry Ford
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1212
Historical Events in Historical Events in Operations Management Operations Management (cont.)(cont.)
Era Events/Concepts Dates Originator
Human Relations
Hawthorne studies (worker motivation & technical aspect of job affect productivity)
1930 Elton Mayo
Motivation theories
1940s Abraham Maslow
1950sFrederick Herzberg
1960s Douglas McGregor
Operations Research
Linear programming( model of linear relationship between firm’s objective and resources & constraint)
1947 George Dantzig
Digital computer 1951 Remington RandSimulation, waiting
line theory, decision
theory, PERT/CPM
1950sOperations research groups
MRP, EDI, EFT, CIM 1960s, 1970s
Joseph Orlicky, IBM, and others
MRP : Materials requirement planning.EDI : Electronic data interchange between computers.
EFT : Earliest Finish timeCIM : Computer integrated manufacturing
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1313
Historical Events in Historical Events in Operations Management Operations Management (cont.)(cont.)
Era Events/Concepts Dates Originator
Quality
Revolution
JIT (just-in-time) 1970s Taiichi Ohno (Toyota)TQM (total quality
management)1980s
W. Edwards Deming,
Joseph JuranStrategy and
operations1990s
Wickham Skinner,
Robert HayesBusiness process
reengineering1990s
Michael Hammer,
James Champy
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Historical Events in Historical Events in Operations Management Operations Management (cont.)(cont.)
Era Events/Concepts Dates OriginatorGlobalization WTO, European Union,
and other trade agreements
1990s
2000s
Numerous countries
and companies
Internet Revolution
Internet, WWW, ERP, supply chain management
1990s ARPANET, Tim
Berners-Lee SAP,
i2 Technologies,
ORACLE,
PeopleSoftE-commerce 2000s Amazon, Yahoo,
eBay, and others
ERP : Enterprise resource planning – software integrating components ( including supply chain) of a company by sharing and organizing information & data
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1515
Continuum from Goods to Continuum from Goods to Services Services ( Operations Management- equally applicable to ( Operations Management- equally applicable to service sector- here profit, intangible, and having enhanced customer service sector- here profit, intangible, and having enhanced customer contact in taking operating decisions )contact in taking operating decisions )
Source: Adapted from Earl W. Sasser, R. P. Olsen, and D. Daryl Wyckoff, Management of Service Operations (Boston: Allyn Bacon, 1978), p.11.
Product manufacturing/Service : Distinction , not very clear; many businesses bundle goods with service- PC/ internet
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1616
Operations Management Operations Management and E-Businessand E-Business
Categories of E-Commerce
Bu
sin
ess
Bu
sin
ess
Co
nsu
mer
Co
nsu
mer
BusinessBusiness ConsumerConsumer
B2B Commerceone.com
B2CAmazon.com
C2BPriceline.com
C2CeBay.com
B2B : Business to supplier ; B2C : Business to customer/ consumer ; C2 B : Consumer to Business- like requirement, price reduction, feedback, bidding on airline tickets.; C2C : Consumer to consumer auction.
Value chain : the set of activities that create and deliver products to the customers.
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1717
An Integrated Value ChainAn Integrated Value Chain
Value chain: Value chain: set of activities that create and deliver set of activities that create and deliver products to customerproducts to customer
Manufacturer SupplierCustomer
Flow of information (customer order)Flow of information (customer order)
Manufacturer SupplierCustomer
Flow of information (customer order)Flow of information (customer order)
Flow of product (order fulfillment)Flow of product (order fulfillment)
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1818
Impact of E-Business on Impact of E-Business on Operations ManagementOperations Management
Comparison shopping by customers
Direct contact with customers
Business processes conducted online
Customer expectations escalate; quality must be maintained and costs lowered
No more guessing about demand is necessary; inventory costs go down; product and service design improves; build to-order products and services is made possible
Transaction costs are lower; customer support costs decrease; e-procurement saves big bucks
Benefits of E-Business Impact on Operations
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-1919
Impact of E-Business on Impact of E-Business on Operations Management (cont.)Operations Management (cont.)
Access to customers worldwide
Middlemen are eliminated
Access to suppliers worldwide
Demand increases; order fulfillment and logistics become major issues; production moves overseas
Logistics change from delivering to a store or distribution center to delivering to individual homes; consumer demand is more erratic and unpredictable than business demand
Outsourcing increases; more alliances and partnerships among firms are formed; supply is less certain; global supply chain issues arise
Benefits of E-Business Impact on Operations
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-2020
Impact of E-Business on Impact of E-Business on Operations Management (cont.)Operations Management (cont.)
Online auctions and e-marketplaces
Better and faster decision making
Competitive bidding lowers cost of materials; supply needs can be found in one location
More timely information is available with immediate access by all stakeholders in decision-making process; customer orders and product designs can be clarified electronically; electronic meetings can be held; collaborative planning is facilitated
Benefits of E-Business Impact on Operations
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Impact of E-Business on Impact of E-Business on Operations Management (cont.)Operations Management (cont.)
IT synergy
Expanded supply chains
Productivity increases as information can be shared more efficiently internally and between trading partners
Order fulfillment, logistics, warehousing, transportation and delivery become focus of operations management; risk is spread out; trade barriers fall
Benefits of E-Business Impact on Operations
After the World Trade Center attack on Sept 11, 2001, US border was closed, and air travel shut down. With the help of internet and world-wide supplier network, Dell Computer could identify where production would be disrupted due to supply constraints- it quickly ramped up production in European & Asian plants and prioritizes orders to fill the most important customers first. Compaq, however, unable to ship $ 300 million worth of orders due to supply chain disruptions
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-2222
Globalization and Globalization and CompetitivenessCompetitiveness
Favorable costFavorable cost Access to international Access to international
marketsmarkets Response to changes in Response to changes in
demanddemand Reliable sources of supplyReliable sources of supply 14 major trade agreements in 14 major trade agreements in
1990s 1990s ( WTO, NAFTA, SAFTA, TA ( WTO, NAFTA, SAFTA, TA between ASEAN- Thailand, Japan, between ASEAN- Thailand, Japan, Indonesia)Indonesia)
Peak: 26% in 2000Peak: 26% in 2000 2/ 3 of businesses operate 2/ 3 of businesses operate
globally.globally.World Trade Compared to World GDPSource: “Real GDP and Trade Growth of OECD Countries, 2001–03,” International Trade Statistics 2003, World Trade Organization, www.wto.org
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Globalization and Globalization and Competitiveness (cont.)Competitiveness (cont.)
Hourly Wage Rates for Selected CountriesSource: “International Comparisons of Hourly Compensation Costs for Production Workers in Manufacturing,” Bureau of Labor Statistics, U.S. Department of Labor, Updated September 30, 2003.
Germany: $26.18Germany: $26.18
USA: $21.33USA: $21.33
Taiwan: $5.41Taiwan: $5.41
Mexico: $2.38Mexico: $2.38
China: $0.50China: $0.50
Labor Wage Rate vs year
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Globalization and Globalization and Competitiveness (cont.)Competitiveness (cont.)
Trade with China: Percent of each country‘s trade Trade with China: Percent of each country‘s trade Source: Source: “Share of China in Exports and Imports of Major Traders, 2000 and 2002,” “Share of China in Exports and Imports of Major Traders, 2000 and 2002,”
International Trade Statistics 2003, World Trade Organization, www.wto.orgInternational Trade Statistics 2003, World Trade Organization, www.wto.org
China : Low labor cost, enormous consumer markets, its needs are machinery & basic materials, is a hub for manufacturing low –tech goods.When companies move to China, their supplier & suppliers’ suppliers also move there.Globalization of service : India excels in service- Overseas companies outsourcing to India
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-2525
Risks of GlobalizationRisks of Globalization
Cultural differences Cultural differences Supply chain logisticsSupply chain logistics Safety, security, and Safety, security, and
stabilitystability Quality problemsQuality problems Corporate image Corporate image Loss of capabilitiesLoss of capabilities
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-2626
Competitiveness and Competitiveness and ProductivityProductivity
CompetitivenessCompetitiveness degree to which a nation can produce goods and degree to which a nation can produce goods and
services that meet the test of international services that meet the test of international marketsmarkets
ProductivityProductivity ratio of output to inputratio of output to input
OutputOutput sales made, products produced, customers sales made, products produced, customers
served, meals delivered, or calls answeredserved, meals delivered, or calls answered InputInput
labor hours, investment in equipment, material labor hours, investment in equipment, material usage, or square footageusage, or square footage
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-2727
Measures of Productivity
Competitiveness and Competitiveness and Productivity (cont.)Productivity (cont.)
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Changes in Productivity Changes in Productivity for Select Countriesfor Select Countries
Internet-enabled productivityInternet-enabled productivity
- Dot com bust- 9/11 terrorist attacks- Dot com bust- 9/11 terrorist attacks
Source: “International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends, 2002,” Bureau of Labor Statistics, U.S. Department of Labor, September 2003. U.S. figures for 2002–2003 from “Major Sector Productivity and Costs Index,” Bureau of Labor Statistics, U.S. Department of Labor, March 2004
The productivity is expressed in relative change basis – month to month, yr to yr etc.; labor hrs, mostly used for calculating productivity
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-2929
Become efficientBecome efficient output increases with little or no increase in inputoutput increases with little or no increase in input
ExpandExpand both output and input grow with output growing both output and input grow with output growing
more rapidlymore rapidly Achieve breakthroughsAchieve breakthroughs
output increases while input decreasesoutput increases while input decreases DownsizeDownsize
output remains the same and input is reducedoutput remains the same and input is reduced RetrenchRetrench
both output and input decrease, with input both output and input decrease, with input decreasing at a faster ratedecreasing at a faster rate
Productivity IncreaseProductivity Increase
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3030
Competitiveness and Competitiveness and ProductivityProductivity
Productivity as a Function of Inputs and Outputs, 2001–2002Source: “International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends, 2002,” Bureau of Labor Statistics, U.S. Department of Labor, September 2003
Breakthrough Performance( Sweden)
Breakthrough Performance( Sweden)
More Efficient ( Taiwan)More Efficient ( Taiwan)
Retrench( US, Japan & Germany – Labor inputs reducing due to global
outsourcing and improved
technology)
Retrench( US, Japan & Germany – Labor inputs reducing due to global
outsourcing and improved
technology)
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3131
Global Competitiveness Global Competitiveness RankingRanking
1.1. FinlandFinland2.2. United StatesUnited States3.3. SwedenSweden4.4. DenmarkDenmark5.5. TaiwanTaiwan6.6. SingaporeSingapore7.7. SwitzerlandSwitzerland8.8. IcelandIceland9.9. NorwayNorway10.10. AustraliaAustralia
Source: Global Competitiveness Report 2003–2004, World Economic Forum, January 2004, www.weforum.org
Countries’ competitiveness depending on the ability of their companies compete in global market- which depending on business environment they workThis ranking considered factors like company’s availability of highly skilled people, better information, more efficient government processes, improved infrastructure, better suppliers, more advance research information, and more intense competitive pressure.Raking based on two measuresi) The sophistication of a company’s operationsii) The quality of the national business environment Competitiveness within industries: More intense when the firms are equal in size , resources, products and services are standardized , and industry growth is either slow ( so that one company grows at the expense of other) or exponential( so gaining a foot hold in the market is a strategic imperative
US : Strong in technology but less effective in its public institutions.Most competitive industries are commercial banking, food & drug stores and electronics.
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3232
Economies of Scale Economies of Scale (with increasing no of units (with increasing no of units produced, the unit cost decreases) produced, the unit cost decreases)
Capital Investment Capital Investment ( large initial investment ( large initial investment required for facilities, equipment, and training for required for facilities, equipment, and training for becoming a player in some industries) becoming a player in some industries) Access to Access to Supply and Distribution Channels Supply and Distribution Channels (existing (existing firm within an industry having established supply and firm within an industry having established supply and distribution channels, difficult for new firms to replicate )distribution channels, difficult for new firms to replicate )
Learning CurveLearning Curve( rate at which performances ( rate at which performances improving with repetition) improving with repetition)
Operations–oriented Barriers to Operations–oriented Barriers to EntryEntry( factors that make it difficult for new firms to enter an ( factors that make it difficult for new firms to enter an industry) industry)
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3333
Primary Topics in Operations Primary Topics in Operations ManagementManagement( Many issues, concepts, and techniques ( Many issues, concepts, and techniques associated with the field of OM-Fig. showing the primary-decisions associated with the field of OM-Fig. showing the primary-decisions making areas in OM and how they relate to each other- the diagram, making areas in OM and how they relate to each other- the diagram, divided in 2 sections-designing & operating the system.)divided in 2 sections-designing & operating the system.)
Figure showing primary decision making areas in OM and how they relate to each other in road map.
This figure is showing decisions required to design a productive system. Operations Strategy, drives product/service design
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3434
Primary Topics in Operations Primary Topics in Operations Management (cont.)Management (cont.)
This section : concerned with operating the system designed in section 1
The series of decision involved in operating the supply chain, forecasting demand, inventory management , production planning, resource allocation, and production scheduling are incorporated in supply chain management.
Companies : can achieve competitiveness when both design and operating decisions are driven by quality in the context of a global business environment
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3535
Operations StrategyOperations Strategy
Strategy: Chapter 2Strategy: Chapter 2 Maintaining an operations strategy to support firm’s Maintaining an operations strategy to support firm’s
competitive advantagecompetitive advantage Quality: Chapters 3 and 4Quality: Chapters 3 and 4
Focusing on quality in operational decision makingFocusing on quality in operational decision making Product and Services: Chapter 5Product and Services: Chapter 5
Designing quality products and servicesDesigning quality products and services Processes, Technologies, and Capacity: Chapter 6Processes, Technologies, and Capacity: Chapter 6
Setting up process so that it works smoothly and Setting up process so that it works smoothly and efficientlyefficiently
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3636
Facilities: Chapter 7Facilities: Chapter 7 Setting up facility so that it works Setting up facility so that it works
smoothly and efficientlysmoothly and efficiently Human Resources: Chapter 8Human Resources: Chapter 8
Designing jobs and work to produce Designing jobs and work to produce quality productsquality products
Project Management: Chapter 9Project Management: Chapter 9 Managing complex projects Managing complex projects ( breaking down ( breaking down
complex processes, scheduled activities, and ensuring complex processes, scheduled activities, and ensuring project completion on time and budget)project completion on time and budget)
Operations Strategy Operations Strategy (cont.)(cont.)
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3737
Supply Chain Supply Chain ManagementManagement
Supply Chain: Chapter 10Supply Chain: Chapter 10 Managing supply chainManaging supply chain
Forecasting: Chapter 11Forecasting: Chapter 11 Predicting customer demandPredicting customer demand
Aggregate Planning: Chapter 12Aggregate Planning: Chapter 12 How much to produce and when to How much to produce and when to
produce it produce it Inventory Management: Chapter 13Inventory Management: Chapter 13
How much to order and when to orderHow much to order and when to order
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3838
Supply Chain Supply Chain Management (cont.)Management (cont.)
Resource Planning: Chapter 14Resource Planning: Chapter 14 Planning capacity and other resourcesPlanning capacity and other resources
Lean Production: Chapter 15Lean Production: Chapter 15 Designing efficient production linesDesigning efficient production lines( without fat)( without fat)
Scheduling: Chapter 16Scheduling: Chapter 16 Job and task assignmentsJob and task assignments
Waiting Lines: Chapter 17Waiting Lines: Chapter 17 Minimizing waiting time of customers and Minimizing waiting time of customers and
productsproducts
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-3939
Learning Objectives of Learning Objectives of this Coursethis Course
Gain an appreciation of strategic importance of Gain an appreciation of strategic importance of operations in a global business environmentoperations in a global business environment
Understand how operations relates to other Understand how operations relates to other business functionsbusiness functions
Develop a working knowledge of concepts and Develop a working knowledge of concepts and methods related to designing and managing methods related to designing and managing operationsoperations
Develop a skill set for quality and process Develop a skill set for quality and process improvementimprovement
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 1-1-4040
Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without of the 1976 United States Copyright Act without express permission of the copyright owner is express permission of the copyright owner is unlawful. Request for further information should unlawful. Request for further information should be addressed to the Permission Department, be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only make back-up copies for his/her own use only and not for distribution or resale. The Publisher and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, assumes no responsibility for errors, omissions, or damages caused by the use of these or damages caused by the use of these programs or from the use of the information programs or from the use of the information herein. herein.