Marketing Manager Course - Chapter 17

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Marketing Manager Course - Chapter 17

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McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. 17 Chapter Operations Management Operations Management McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After reading this chapter, you should be able to: z Define operations management and its three stages: inputs, transformation and disposition. z Describe how operations management ensures supplies of inputs and an efficient production system. z Use tools of operations management, including Gantt charts, PERT networks, and statistical process tools. z Explain the role of quality management in the operations management process. z Understand and apply the principles of quality management, kaizen, just-in-time manufacturing, and kanban to the production process. © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill What is Operations Management? z Operations management is the process an organization uses to: ¾ Obtain the materials or ideas for the product it provides. ¾ Transform the materials or ideas into the product. ¾ Provide the final product to a user. z Operations management is closely linked to: ¾ Strategic Management (Chapter 7) ¾ Planning (Chapter 5) ¾ Information Systems Management (Chapter 18) © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill Skills for Operations Management Organization Skills Analytical Problem Solving Skills Communication Skills © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill The Operations Management Process Inputs C onversion O utputs Raw materials Labor Energy Knowledge Facility Capacity Process Control Goods Services Information © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill Planning in Operations Management z Planning is the foundation of operations management. z Planning – the management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives. © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill Strategic Planning z Strategic management decisions involved in operations management: ¾ Make-buy analysis: whether to produce an item or to purchase it. ¾ Capacity: firm’s ability to produce the product during a given period. ¾ Facilities: design and location of an operations facility. ¾ Process: how a product or a service will be produced. ¾ Facilities layout design: physical arrangement that allows for efficient production. © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill Acquiring Inputs z Inputs are the supplies needed to create a product. z Materials requirements planning: analyzing a design to determine the materials and parts required in the production process. z Inventory: the stock of raw materials, inputs, and component parts that the firm keeps on hand. ¾ Reordering systems: the process used to help keep inventory levels more or less consistent. 9 Fixed point reordering system 9 Fixed interval reordering system © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill The Conversion Process z Conversion process: the stage in which the product’s inputs are converted to the final product. z An effective conversion process: ¾ Works to lower the cost of creating the product; or to ¾ Create a better product for the same cost. z Key decision areas: ¾ Designing the process ¾ Monitoring the process © 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill [...]... - Paint interior 5 - Install electrical fixtures Install floors Install baking equipment Test equipment McGraw-Hill - © 2004 The McGraw-Hill Companies, Inc All rights reserved Example of a Load Chart WEEKS Start 1 2 Office Staff 5 - Painter 4 - Order department 3 - Electrician Carpenter McGraw-Hill... McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Just-in-Time (JIT) Systems Just-in-time (JIT) – the concept behind creating the firm’s product in the least amount of time Close coordination between manufacturers, suppliers, and customers The firm’s inventory of inputs are kept at the lowest level possible Inputs arrive at the organization when, not before, they are needed McGraw-Hill... paperwork McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Applications: Management is Everyone’s Business—For the Manager Quality-centered management of operations is the key to remaining competitive and can lead to the survival of the organization Effective managers understand and utilize the concepts and techniques of operations management McGraw-Hill © 2004 The McGraw-Hill Companies,... Edwards Deming is considered the father of quality management McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Managing Quality (continued) The Quality Management Approach Total Quality Management (TQM) Kaizen (Continuous Improvement) and Efficiency Just-in-Time Systems Process Engineering McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Total Quality Management... grouping and organization of equipment and employees Product layout - where each function is performed in a fixed sequence Process layout - where each work station is relatively selfcontained Fixed position layout - where remote work stations assemble components, and they are then brought to a final assembly area McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Flexible Manufacturing... McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Example of a PERT Network Get permit 1 4 Start 1 1 McGraw-Hill Order baking equipment Paint interior 1 1 Install baking equipment Install electrical fixtures 1 1 Test equipment 1 Install floors © 2004 The McGraw-Hill Companies, Inc All rights reserved Facilities Layout Facilities layout - the grouping and organization of... Check Act McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Total Quality Management (TQM) (continued) Management and TQM Correct variances in operations management by using TQM principles to find and correct their source Employees and TQM Operations managers must be sure their employees understand what TQM means and that each worker is responsible for improving quality Managers must... week McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Process Design Tools Gantt Charts: provide a visual sequence of the process steps Load Charts: type of Gantt chart based on departments or specific resources that are used in the process Program Evaluation and Review Technique (PERT) Network: tool for analyzing the conversion process McGraw-Hill © 2004 The McGraw-Hill Companies,... design, engineering, and manufacturing tools make the work process more flexible McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Process Monitoring Tools A ccept ance Sam plng i Tot Fact al or Productviy i t McGraw-Hill St i i atstcal Process C ont rol Partal i Productviy i t © 2004 The McGraw-Hill Companies, Inc All rights reserved Statistical Process Control Tools C heck Sheet... organization when, not before, they are needed McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Kanban A form of JIT system originated in Japan Uses cards to generate inventory From the Japanese word for “card” or “sign” small batches of components to assembly line as needed McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Process Reengineering Method of changing . -- -- - -- - -- - - Carpenter -- -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- Electrician -- -- - -- - -- - -- - -- - -- - -- - -- - -- - Painter -- -- - -- - -- - -- - -- - -- Order department -- -- - -- - -- - -- - -- - -- . -- -- - -- - -- - - Install floors -- -- - -- - -- - - Install electrical fixtures -- -- - -- - -- - -- - -- - -- - -- - -- - -- - Paint interior -- -- - -- - -- - -- - -- - -- Order baking equipment -- -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - --

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