Introduction to

Source: Dr. Felton LeanRetrieve from: http://www.authorstream.com/Presentation/aSGuest59553-464254-

introduction-tp-operations-management/

ปรับปรุงโดย ดร.กฤษดา เชียรวฒันสุข

Workers

Managers

Equipment

Facility

Materials

Land

Energy

Information

Goods

Services

Inputs Outputs

Operations and Processes

Feedback

Processes

Lead time: The time between ordering a good or service and receiving it.

Feedback

The management of systems or processes that

create goods and/or provide services.

Planning

Coordinating

Executing

OVERVIEW OF

OPERATIONS MANAGEMENT MODEL

Transformation

Process

Output

Goods or Services

Control

Input

resources

raw materials

machines

personnel

capital

land/buildings

utilities

information

etc.

The difference between the cost of inputs and the value or price of outputs

.

Inputs

Material

Labor

Capital

Transformation/

Conversion

process

Outputs

GoodsServices

Value added

Land

Feedback and Control

Measurements taken at various points in the

transformation process for control purposes are called

feedback.

The process of comparing outputs to previously

established standards to determine if corrective action

is needed is called controlling

Physical Flow Information Flow

Operations management considers how the input are transformed into goods or services.

Control is when something is learned about the goods or services that is used to more effectively transform future goods or services.

Inputs Processing Outputs

Improvement of patients health condition

Inputs Processing Outputs

Knowledge

• Text Book

• Lecture Notes

• Handouts

• Course CD

• ……

Lecturing

Tutoring

Assignment

Exam

Future

Operations

Managers

Teaching Evaluation

Production of goods Delivery of services

“

Customized

Eyeglasses

Tailoring

A la Carte

Standardized

high degree of uniformity

Radio

Canned food

Mobile Phone

Television

Car

Characteristic Manufacturing ServiceTangible

High

High

Low

Easy

Low

High

Easy

Usually

Forecasting

Capacity planning

Scheduling

Managing inventories

Assuring quality

Motivating employees

Deciding where to locate facilities

And more . . .

Forecasting: Weather, landing conditions, seat demands

for flights.

Capacity Planning: How many number of planes in each

route?

Scheduling: Scheduling of planes for flights and for routine

maintenance, scheduling of pilots and flights attendants.

Quality: Quality of the services, Safety.

Forecasting: Demands for cars.

Capacity Planning : Number of shifts, level of workforce.

Inventory: Various component, parts.

Scheduling: Scheduling of various types of cars, Scheduling of

workforce.

Quality: Quality of products, services.

Responsibilities of Operations Manager

Products & services

Planning

– Capacity

– Location

–

– Make or buy

– Layout

– Projects

– Scheduling

Controlling / Improving

– Inventory

– Quality

Organizing

– Degree of centralization

– Process selection

Staffing

– Hiring/laying off

– Use of Overtime

Directing

– Incentive plans

– Issuance of work orders

– Job assignments

– Costs

– Productivity

Why is Operations Management

Important?

Operations

Finance

Capital Markets, Stockholders

Marketing

Customers

Work

ers

Supplie

rs

Purc

hasin

g

Pers

onnel

The Overlapping of Three Major Functions

• Competitor

• Customer preference

• Trend of technology

Operational based competitive advantage can be achieved

by:

*Doing things right the first time - Quality advantage;

*Doing things cost effectively - Cost advantage;

*Do things fast: Speed advantage;

*Change things quickly: Adaptability-advantage;

(ability to change from making Tea, Coffee, etc)

- Change operations to meet customer demand for variety.

- SME Furniture manufacturer (beds, chairs, tables, sofa).

*Do things right every time: Reliability-advantage;

- Offer error-free products or services to customers every time.

*Do things better: Service-advantage and continuous improvement;(e.g., TQM – all aspects of business important in delivering

quality service to customer).

Forecasting

Product and

Service Design

Technological

Change

Capacity

Planning

Process

Selection

Facilities and

Equipment

Layout

Work

Design

Variety How much

Flexibility What degree

Volume Expected output

Job Shop

Batch

Repetitive

Continuous

Job shop/ Unit Production

Batch/ Process Departments

Assembly Line/ Product Departments

Continuous Flow/ Process Industries

Job shop

Small scale

Batch

Moderate volume

Repetitive/assembly line

High volumes of standardized goods or services

Continuous

Very high volumes of non-discrete goods

Process Type0

Job Shop Appliance repair

Emergency room

Not feasible

Batch Commercial

bakery

Classroom

Lecture

Repetitive Automotive

assembly

Automatic

carwash

Continuous

(flow)

Not feasible Oil refinery

Water purification

∞Amount

Dimension

Job variety Very High Moderate Low Very low

Process

flexibility

Very High Moderate Low Very low

Unit cost Very High Moderate Low Very low

Volume of

output

Very Low Low High Very High

PROCESS FLOW

UNIT/JOB SHOP

One of a Kind, Custom Tools, Buildings, Software, Research Projects,

Exclusive Restaurants

BATCH

Furniture, Clothes, Most Plastic Parts, Many Photo Shops

MASS

Autos, BIC pens, Consumer Electronics, One-Hour Photos, Fast Food

Restaurants

CONTINUOUS PROCESS

Chemicals, Primary Materials, Petroleum, Lumber

UNIT

BATCH

MASS ASSEMBLY LINE

CONTINUOUS PROCESS

IV.

Continuous

Flow

III.

Assembly

Line

II.

Batch

I.

Job

Shop

Low

Volume

One of a

Kind

Multiple

Products,

Low

Volume

Few

Major

Products,

Higher

Volume

High

Volume,

High

Standard-

ization

Commercial Printer

French Restaurant

Heavy Equipment

Coffee Shop

Automobile Assembly

Burger King

Sugar

Refinery

Flexibility (High)

Unit Cost (High)

Flexibility (Low)

Unit Cost (Low)

Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York:

John Wiley & Sons, 1984). p. 209.

Flexibility/Variety is HigherCosts are HigherOK with low volume marketsOK when high customization is necessary

Threats:A competitor can undercut youRisky when high volume can be stimulated through

price competition

Costs are lowerAutomation is higherGreater investment

Threats: Greater market risk – what do you do with an

automated highly specialized plant when demand decreases?

Competition may match costs with greater product variety.

Types of Service Operations

Service

Capital Intensive Labor Intensive

Monitored by

Unskilled

OperatorsAutomatic

Operated

by Skilled

Operators

Unskilled

Labor

Skilled

LaborProfessionals

Vending

machines,

automated

car washes

Movie

theaters,

taxis, dry

cleaners

Airlines,

medical

testing,

excavating

Lawn care,

janitorial,

guards

Appliance

repair,

banks,

catering

Doctors,

lawyers,

consultants

Defining Services - Types of Processes

Project

Job Shop

Flow Shop

Continuous Process

Construction,

Shipbuilding

Sign-making

Tailoring

Automobiles

Appliance Shop

Oil Refinery

Cereal Plant

Consulting,

Software Development

Auto Repair

Restaurant

Fast Food Restaurant

Car Wash

ATMs

Police / Fire Service

Type Mfg. Example Service Example

Service Primary Conversion Desired

System Input Process Output

University Students Knowledge Educated . Transmission People

Hospital Patient Health Care Healthy . People

Restaurant Customers Food Satisfied . Preparation Customers

Video Store Customers Fill Requests Satisfied . Customers

Consumer

Need

Market

Research

Product

Design

Approved

Proposal to

Management

Approval

Production

Design

SalesConsumer

Acceptance

Revenue

CreditCash

Purchase

of MaterialNot

Approved

Sale &

Promotion

Planning

Execute

Production Plan and

Quality Control

Production

Planning

Reports

Demand

Analysis

Approved

Wage

& Salary

Profits & Reserve

Idea generation

Detailed engineering design

Production process design & development

Product evaluation

Product improvement

Product use & support / After sales services

Advanced design

Feasibility study/Advanced product planning