operations management by william j stevenson (2)
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7/25/2019 Operations Management by William j Stevenson (2)
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McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-1
7/25/2019 Operations Management by William j Stevenson (2)
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McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-2
Chapter One
Introductionto
OperationsManagement
7/25/2019 Operations Management by William j Stevenson (2)
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McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-3
• What is Operations?
The part of a business organization
that is responsible for producinggoods or services
7/25/2019 Operations Management by William j Stevenson (2)
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-4
Operations Management
Organization
Finance Operations Marketing
The management of systems or processes thatcreate goods and/or provide services
Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-5
Supply Chain
Suppliers’
suppliers
Direct
suppliersProducer Distributor
Final
Customers
Supply Chain – a sequence of actiities and
or!ani"ations inoled in producin! and delierin! a
!ood or serice
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-#
• The scope of Operations Management
includes ! Forecasting
! Capacit" planning
! #cheduling ! Managing inventories
! $ssuring %ualit"
! Motivating emplo"ees ! &eciding 'here to locate facilities
! $nd more ( ( (
Introduction to Operations Management
7/25/2019 Operations Management by William j Stevenson (2)
http://slidepdf.com/reader/full/operations-management-by-william-j-stevenson-2 7/31McGraw-Hill/Irwin
Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-$
Why Manufacturing Matters
•Over )* million 'orkers in manufacturing +obs• $ccounts for over ,-. of value of /(#( e0ports
• $verage full1time compensation about 2-.
higher than average for all 'orkers•Manufacturing 'orkers more likel" to havebenefits
•3roductivit" gro'th in manufacturing in the last 4"ears is more than double that of the /(#(econom"
7/25/2019 Operations Management by William j Stevenson (2)
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-%
Why Study OM?
• 5ver" aspect of business revolves around operations• Man" service +obs are closel" related to operations
! Financial services
! Marketing services
! $ccounting services
! Information services
• There is a significant amount of interaction andcollaboration amongst the functional areas
• It provides an e0cellent vehicle for understanding the'orld in 'hich 'e live
7/25/2019 Operations Management by William j Stevenson (2)
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-&
Career Opportunities in OM
• Operations manager • 3roduction anal"st
• 3roduction manager
• Industrial engineer • Time stud" anal"st
• Inventor" manager
• 6ualit" anal"st• 6ualit" manager
7/25/2019 Operations Management by William j Stevenson (2)
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-1'
7usiness Operations Overlap
Marketing
Operations
Finance
Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-11
Goods are p()sical items t(at include ra* materials+ parts+
subassemblies+ and final products,.utomobileComputer /en
S(ampoo
Services are actiities t(at proide some combination of
time+ location+ form or ps)c(olo!ical alue,.ir trael
0ducationaircute!al counsel
Good or Service?
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-12
Steel production
Automobile fabrication
House building
Road construction
Dressmaking
Farming
Auto Repair
Appliance repair
Maid Service
Manual car wash
Teaching
Lawn mowing
Low service content
High goods content
High service content
Low goods content
ncreasinggoods contentncreasing
service content
8oods1service continuum
Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-13
#tage of 3roduction 9alue $dded
9alue of3roduct
Farmer produces and harvests 'heat :-()4 :-()4
Wheat transported to mill :-(-* :-(2;
Mill produces flour :-()4 :-(;*
Flour transported to baker :-(-* :-(<=
7aker produces bread :-(4< :)(--
7read transported to grocer" store :-(-* :)(-*
8rocer" store displa"s and sells bread :-(2) :)(2>
Total 9alue1$dded $1.29
Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-14
T"pes of Operations
Operations 50amples8oods 3roducing Farming mining construction
manufacturing po'er generation#torage@Transportation Warehousing trucking mail
service moving ta0is buseshotels airlines
50change Aetailing 'holesaling bankingrenting leasing librar" loans
5ntertainment Films radio and televisionconcerts recording
Communication Be'spapers radio and televisionne'scasts telephone satellites
Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-15
9alue1$dded
The difference bet'een the cost of inputsand the value or price of outputs(
Inputs Land
Laor
Capital
!rans"or#ation/
Conversion
process
Outputs Goods
Services
Control
Feedack
Feedack Feedack
Value added
Introduction to Operations Management
1 1# I t d ti t O ti M t
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-1#
Food 3rocessor
Inputs 3rocessing Outputs
Aa' 9egetables Cleaning CannedvegetablesMetal #heets Making cans
Water Cutting5nerg" Cookingabor 3acking7uilding abeling
5%uipment
Introduction to Operations Management
1 1$ I t d ti t O ti M t
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-1$
Dospital 3rocess
Inputs 3rocessing Outputs
&octors nurses 50amination Dealth"patientsDospital #urger"
Medical #upplies Monitoring5%uipment Medicationaboratories Therap"
Introduction to Operations Management
1 1% I t d ti t O ti M t
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-1%
Operations Interfaces
Public elations
.ccountin!
ndustrial0n!ineerin!
/perations
aintenance
PersonnelPurc(asin!
Distribution
S
Introduction to Operations Management
1 1&
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-1&
Decision Making
• Most operations decisions involve man" alternatives thatcan have %uite different impacts on costs or profits
• T"pical operations decisions include
! What: What resources are needed and in 'hat amounts?
! When: When 'ill each resource be needed? When should the
'ork be scheduled? When should materials and other supplies be
ordered?
! Where: Where 'ill the 'ork be done?
! How: Do' 'ill he product or service be designed? Do' 'ill the
'ork be done? Do' 'ill resources be allocated?
! Who: Who 'ill do the 'ork?
1 2'
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-2'
The Operations Function consists of all activitiesdirectly related to producing goods or providing services(
$ primar" function of the operations manager is to guide
the s"stem b" decision making( ! #"stem &esign &ecisions
! #"stem Operation &ecisions
Role of the Operations Manager
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1 22 Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-22
&ecision Making
#"stem operation – personnel – inventor" – scheduling
– pro+ectmanagement
– %ualit" assurance
Introduction to Operations Management
1 23 Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-23
Models
$ model is an abstraction of realit"(
– 3h"sical
– #chematic
– Mathematical
$hat are the pros and cons o" #odels%
!radeo""s
Introduction to Operations Management
1 24 Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
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6uantitative $pproaches
inear programming 6ueuing Techni%ues
Inventor" models
3ro+ect models #tatistical models
Introduction to Operations Management
1 25 Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-25
Manufacturing or #ervice?
!angile &ct
Introduction to Operations Management
1-2# Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1-2#
Ee" &ifferences
Customer contact /niformit" of input
abor content
/niformit" of output Measurement of productivit"
6ualit" assurance
These differences are beginning to fadein many cases
Introduction to Operations Management
1-2$ Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
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Manufacturing vs #ervice
CharacteristicOutput
Customer contact
/niformit" of input
abor content
/niformit" of output
Measurement of productivit"
Opportunit" to correct
ManufacturingTangible
o'
Digh
o'
Digh
5as"
Digh
#erviceIntangible
Digh
o'
Digh
o'
&ifficult
o'
%ualit" problemsDigh
Introduction to Operations Management
1-2% Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
Copyright © 2002 by The M!ra"#$ill Companies, %n. &ll rights reserved.
1 2%
Aesponsibilities of Operations Management
3roducts services
3lanning – Capacit" – ocation –
– Make or bu" – a"out – 3ro+ects – #chedulingControlling
– Inventor" – 6ualit"
Organizing – &egree of centralization – #ubcontracting#taffing – Diring@la"ing off – /se of Overtime&irecting – Incentive plans – Issuance of 'ork orders – Gob assignments
Introduction to Operations Management
1-2& Introduction to Operations Management
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Operations Management, Seventh Edition, by William J. Stevenson
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#"stems $pproach
“The whole is greater thanthe sum of the parts.”
Suopti#i'ationSuopti#i'ation
Introduction to Operations Management
•6eneficial in decision ma7in!
•Consider t(e impact on all parts of t(e s)stem
1-3'
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Operations Management, Seventh Edition, by William J. Stevenson
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Historical Evolution of OM
• Industrial Aevolution• #cientific Management
• Duman Aelations Movement
• &ecision Models and Management #cience
• Influence of Gapanese Manufacturers
1-31
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Operations Management, Seventh Edition, by William J. Stevenson
1 31
ey !rends and Issues in "usiness
• 517usiness 51Commerce• Management of Technolog"
• 8lobalization
• Management of #uppl" Chains
• Outsourcing
• $gilit"
• 5thical 7ehavior
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