Production and Operation Management Operation

8/18/2019 Production and Operation Management Operation

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PRODUCTION & OPERATIONS

MANAGEMENT

INTRODUCTION TO

OPERATIONS

MANAGEMENT


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•Operations Management• Operations management deals wit pro!ess tat

prod"!e goods and ser#i!es

or

• Operations management re$ers to te dire!tions and!ontrol o$ te pro!esses tat !on#erts inp"t into

o"tp"t

Pro!esses are te $"ndamental a!ti#ities tatorgani%ations "se to do wor and a!ie#e teir goals'


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(at Operations and S"ppl) Cain

Managers Do

• (at is Operations Management*• design+ operation+ and impro#ement o$ prod"!ti#e s)stems

• (at is Operations*• a $"n!tion or s)stem tat trans$orms inp"ts into o"tp"ts o$ greater

#al"e• (at is a Trans$ormation Pro!ess*

• a series o$ a!ti#ities along a value chain e,tending $rom s"pplierto !"stomer

• a!ti#ities tat do not add #al"e are s"per$l"o"s and so"ld -e

eliminated

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Operations as a

Trans$ormation Pro!ess


INPUT•Material•Ma!ines•5a-or

•Management•Capital

TRANS6ORMATION

PROCESS

OUTPUT•Goods•

Ser#i!es

6eed-a! & Re7"irements


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Operations 6"n!tion

• Operations• Mareting

• 6inan!e and

A!!o"nting

• 8"man

Reso"r!es

• O"tside

S"ppliers

029


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8istori!al E#ents in

Operations 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 GanttMoving assembly line 1913 Henry Ford

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Era Events/Concepts DatesOriginator

Quality

Revolution

JIT (just-in-time) 1970s Taiichi Ohno (Toyota)

TQM (total quality

management)

1980sW. Edwards Deming,

Joseph JuranStrategy and

operations1980s

Wickham Skinner,

Robert Hayes

Reengineering 1990sMichael Hammer,

James Champy

Six Sigma 1990s GE, Motorola

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Internet

Revolution

Internet, WWW, ERP,

supply chain management

1990s ARPANET, Tim

Berners-Lee SAP,

i2 Technologies,ORACLE, Dell

E-commerce 2000s Amazon, Yahoo,

eBay, Google, and

othersGlobalization WTO, European Union,

Global supply chains,

Outsourcing, Service

Science

1990s

2000s

China, India,

emerging

economies

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Green

Revolution

Global warming, An

Inconvenient Truth, Kyoto

Today Numerous

scientists,

statesmen and

governments

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Prod"!ti#it) and Competiti#eness

• Competitiveness• degree to wi! a nation !an prod"!e goods and

ser#i!es tat meet te test o$ international marets

• Productivity• ratio o$ o"tp"t to inp"t

• Output• sales made+ prod"!ts prod"!ed+ !"stomers ser#ed+

meals deli#ered+ or !alls answered

• Input

• la-or o"rs+ in#estment in e7"ipment+ material "sage+or s7"are $ootage



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Meas"res o$ Prod"!ti#it)

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Os-orne Ind"stries


C6*C8

C7*C9

C5/C6

C5/C7

C5/C13

Documents

Production and Operation Management Operation