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Iniciacion en direccion de operaciones
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Introduction to Operations
Management
GP40 – Operations Management
Toufik BOUDOUH
Lecture Outline
• What is Operations Management?
• Operations Function
• Historical Events in Operations Management
• Operations Performance Objectives
• Strategy and Operations
• Processes and technology
Operations Management 2
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
Operations Management 3
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
Operations Management 4
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
Operations Management 5
Operations Management 6
Activities of core functions
Operations Management 7
relationship between the
operations function and other
core and support functions
Operations Management 8
Operations management is important in all types of
organization
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
Operations Management 9
Operations as a Transformation
Process
INPUT •Material•Machines•Labor•Management•Capital
TRANSFORMATIONPROCESS
OUTPUT •Goods•Services
Feedback & Requirements
Operations Management 10
Operations as a Transformation
Process
Operations Management 11
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
Operations Management 12
Inputs to the process
Operations Management 13
Outputs from the process
Operations Management 14
Examples of operations and processes
Operations Management 15
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
Operations Management 16
Processes in non-operations functions
Operations Management 17
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
Operations Management 18
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
Operations Management 19
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
Operations Management 20
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
Operations Management 21
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
Operations Management 22
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
Operations Management 23
Operations performance objectives
• Quality
• Speed
• Dependability
• Flexibility
• Cost
Operations Management 24
The quality objective• Quality reduces costs
• Quality increases dependability
• Quality means different things in different
operations
Operations Management 25
The quality objective• Quality reduces costs
• Quality increases dependability
• Quality means different things in different
operations
Operations Management 26
The quality objective• Quality reduces costs
• Quality increases dependability
• Quality means different things in different
operations
Operations Management 27
The speed objective• Speed reduces inventories
• Speed reduces risks
• Speed means different things in different
operations
Operations Management 28
The speed objective• Speed reduces inventories
• Speed reduces risks
• Speed means different things in different
operations
Operations Management 29
The speed objective• Speed reduces inventories
• Speed reduces risks
• Speed means different things in different
operations
Operations Management 30
The dependability objective• Dependability saves time and money
• Dependability means different things in
different operations
Operations Management 31
The dependability objective• Dependability saves time and money
• Dependability means different things in
different operations
Operations Management 32
The dependability objective• Dependability saves time and money
• Dependability means different things in
different operations
Operations Management 33
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
Operations Management 34
The flexibility objective
Operations Management 35
• Flexibility means different things in different
operations
The flexibility objective
Operations Management 36
• Flexibility means different things in different
operations
The flexibility objective
Operations Management 37
• Flexibility means different things in different
operations
The cost objective
Operations Management 38
• Low cost is a universally attractive objective
• Cost means different things in different
operations
The cost objective
Operations Management 39
• Low cost is a universally attractive objective
• Cost means different things in different
operations
The cost objective
Operations Management 40
• Low cost is a universally attractive objective
• Cost means different things in different
operations
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
Operations Management 41
Productivity and Competitiveness
Measures of Productivity
Operations Management 42
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
Operations Management 43
Policy Deployment
• Policy deployment
– translates corporate strategy into measurable
objectives
• Hoshins
– action plans generated from the policy
deployment process
Operations Management 44
Policy Deployment
Derivation of an Action Plan Using Policy Deployment
Operations Management 45
Processes and Technology
• Process Planning (selection)
• Process Analysis
Operations Management 46
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
Operations Management 47
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
Operations Management 48
Product-Process Matrix
Operations Management 49
Process Plans
• Set of documents that detail manufacturing and
service delivery specifications
– assembly charts
– operations sheets
– quality-control check-sheets
Operations Management 50
Operations sheet
Operations Management 51
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
Operations Management 52
Process Flowcharts
• Look at manufacture of product or delivery of
service from broad perspective
• Incorporate
– nonproductive activities (inspection,
transportation, delay, storage)
– productive activities (operations)
Operations Management 53
Process Flowchart Symbols
Operations
Inspection
Transportation
Delay
Storage
Operations Management 54
Process Flowchart: Example
Process
Flowchart
of Apple
Processing
Operations Management 55