ch.1- production systems and operations management

8/16/2019 Ch.1- Production Systems and Operations Management

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CHAPTER 1

PRODUCTION SYSTEMSANDOPERATIONS

MANAGEMENT Textbook: A Modern Approac to Prod!ct"onMana#e$ent b% Ra$ Nare& Ra%' Ne( A#eInternat"ona) *++,-


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Content&

Introd!ct"on

Re)ated I&&!e& o. Operat"on&Mana#e$ent

Operat"on& /!nct"on "n Or#an"0at"on

Ro)e o. Mode)& "n Operat"on&

Mana#e$ent

C)a&&".%"n# Prob)e$& "n Operat"on&Mana#e$ent


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Introduction

Operat"on& Mana#e$ent Can be dened a& te $ana#e$ent o. te

con2er&"on proce&&' ("c con2ert& "np!t&

"nto de&"red o!tp!t&- It a)&o de&"red ("t te de&"#n and te

operat"on o. &%&te$& .or $an!.act!re'tran&port' &!pp)% or &er2"ce-


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Related Issues of Operations

Management So$e o. te re)ated "&&!e& o.operat"on& $ana#e$ent are needed tobe d"&c!&&ed-

S!c a&: prod!ct"on .!nct"on' prod!ct"2"t%'

prod!ct"2"t% $ea&!re$ent' t%pe& o.prod!ct"on &%&te$&' prod!ct"on $ode)"n#'and &o on-


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Prod!ct"on /!nct"on

Prod!ct"on "& an or#an"0ed act"2"t% o.tran&.or$"n# ra( $ater"a)& "nto n"&ed prod!ct&-

Con2er&"onProce&&

Inputs Outputs

)X,.....,X,(XY n21 f =


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Prod!ct"2"t%

Prod!ct"2"t% 3 O!tp!t 4a)!e5Inp!t 4a)!e

Prod!ct"2"t% 3 E6ect"2ene&&5E7c"enc% To capt!re &o$e "&&!e& a& c!&to$er

&at"&.act"on and 8!a)"t%

E6ect"2ene&&: do"n# te r"#t t"n#&

E7c"enc%: do"n# t"n#& r"#t


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Operations Function inOrganization

/"#!re 1 Operat"on& &%&te$ "n anor#an"0at"on

• /or a)) operat"on&' te #oa) "& to create &o$e k"nd o.

2a)!e9added-


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Operat"on& /!nct"on "nOr#an"0at"on

• /or a)) operat"on&' te #oa) "& to create &o$e k"nd o.2a)!e9added-

Tab)e 1 Exa$p)e& o. "np!t&' con2er&"on proce&&and o!tp!t&


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Man!.act!r"n# Operat"on& 4& Ser2"ceOperat"on&

Manufacturing Service

O!tp!t Tan#"b)e Intan#"b)e

Con&!$pt"on o.o!tp!t

Con&!$ed o2er t"$eCon&!$ed

"$$ed"ate)%

Nat!re o. (ork ;ob&<)e&& )abor and $ore

e8!"p$entMore )abor and )e&&

e8!"p$ent

De#ree o. c!&to$ercontact

="tt)e D"rect

C!&to$erpart"c"pat"on "n tecon2er&"on proce&&

No /re8!ent

Per.or$ance$ea&!re$ent

Sop"&t"cated$etod&

S"$p)e $etod&


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H"&tor"ca) &!$$ar% o. Operat"on&Mana#e$ent

Tab)e * H"&tor"ca) &!$$ar% o. Operat"on&Mana#e$ent


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H"&tor"ca) &!$$ar% o. Operat"on&Mana#e$ent

Tab)e * H"&tor"ca) &!$$ar% o. Operat"on& Mana#e$ent


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T%pe& o. Prod!ct"on S%&te$&

/"#!re * D"6erent T%pe& o. Prod!ct"onS%&te$&


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Role of Models in Operations

Management Te $ode)"n# proce&& can #"2e !& a&"$p)"ed 2er&"on o. te &"t!at"on ("tc)ear 2"&"b")"t% o. $a;or .actor&-

In operat"on& $ana#e$ent' (e !&e&e2era) t%pe& o. $ode)& o. 2ar%"n# )e2e)&o. &op"&t"cat"on-


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T%pe& O. Mode)& In Prod!ct"onOperat"on& Mana#e$ent POM<

19 4erba) Mode)&: 4erba) or (r"tten de&cr"pt"2e< $ode)& expre&&

"n (ord& te re)at"on&"p& a$on# 2ar"ab)e&-

*9 Sce$at"c Mode)&: Sce$at"c $ode)& &o( a p"ctor"a)

re)at"on&"p& a$on# 2ar"ab)e&- .or exa$p)e: A$ap&' cart&' d"a#ra$&<

>9 Icon"c Mode)&: Icon"c $ode)& are &ca)ed p%&"ca) rep)"ca& o.

ob;ect& or proce&&e&- .or exa$p)e: Arc"tect!ra)$ode)& o. ne( b!")d"n#&<


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T%pe& O. Mode)& In Prod!ct"onOperat"on& Mana#e$ent POM<

?9 Mate$at"ca) Mode)&: Mate$at"ca) $ode)& &o( .!nct"ona)

re)at"on&"p& a$on# 2ar"ab)e& b% !&"n#

$ate$at"ca) &%$bo)& and e8!at"on&- Operat"on& $ana#er& o.ten !&e $ode)& to

e)p ana)%0e prob)e$& and &!##e&t&o)!t"on&-


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Mate$at"ca) Mode)& "n Prod!ct"on andOperat"on& Mana#e$ent

Opt"$"0at"on $ode)&: He)p to #et te be&t &o)!t"on te #oa)<

Te pre&cr"bed &tep& proced!re< to #et te

#oa)-

He!r"&t"c& Mode)&: a e!r"&t"c "& a &pec"c r!)e9o.9t!$b pr"nc"pa)<

or ar#!$ent der"2ed .ro$ exper"ence- He!r"&t"c $etod& are !&ed to &peed !p te

proce&& o. nd"n# a &at"&.actor% &o)!t"on-


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Mode)"n# @enet&

@% !&"n# $ode)&' $ana#er& canreco#n"0e 4ar"ab)e& tat can be contro))ed to a6ect

per.or$ance o. te &%&te$ Re)e2ant co&t& and te"r $a#n"t!de&' and

Te re)at"on&"p o. co&t& to 2ar"ab)e&'"nc)!d"n# "$portant tradeo6& a$on# co&t&-

U&"n# $ode)& o.ten re8!"re& $ak"n#8!e&t"onab)e a&&!$pt"on&' app)%"n# ard9to9#et co&t and oter data-


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Classifying Problems

Tere can be t(o (a%& o. c)a&&".%"n#prob)e$& tat an operat"on& ana)%&t.ace:

1- @% te de#ree o. !ncerta"nt% o. o!tco$e&and'

*- te de#ree to ("c dec"&"on& are"ndependent-


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1- Uncerta"nt% o. O!tco$e&

Prob)e$& Contro) Under Certa"nt%:

en (e kno( te o!tp!t .or &!re

Under R"&k: en (e kno( te probab")"t% o. eac o!tco$e

Under Uncerta"nt%: en (e donBt kno( te probab")"t% o. eac

o!tco$e


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Example !Certainty" # c$ain of supermar%ets is going to

open a ne& store at one of four

possible locations' Mana#e$ent ("&e& to &e)ect te )ocat"on

tat (")) $ax"$"0e protab")"t% o2er tenext ten %ear&- An exten&"2e ana)%&"& (a&

per.or$ed to deter$"ne te co&t&'re2en!e&' and prot& .or eac a)ternat"2e-

Te re&!)t& are &o(n be)o(-


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Solution' Under cond"t"on& o. certa"nt%'te be&t )ocat"on "& ea&")% "dent"ed-=ocat"on * c)ear)% %"e)d& te "#e&tprot-

Tab)e 1


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Example ( !Ris%" /!rter ana)%&"& o. te &!per$arket ca"nB& prob)e$

re2ea)& tat te prot a&&oc"ated ("t eac )ocat"on"& not kno(n .or &!re- Mana#e$ent "& con2"nced tat

te ten9%ear protab")"t% o. eac )ocat"on (")) depend!pon re#"ona) pop!)at"on #ro(t- Tere.ore$ana#e$ent cannot pred"ct te o!tco$e ("tcerta"nt%-

Tree po&&"b)e rate& o. pop!)at"on #ro(t (ere"dent"ed: low, medium, and high. The proftability ($millions) associated ("t eac )ocat"on and eac rateo. pop!)at"on #ro(t (a& ca)c!)ated' a& &o(n be)o(-


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Solution) Under cond"t"on& o. r"&k' te co"ce "& not &o ea&%-e do not kno( ("c )ocat"on (")) be be&t beca!&e te rateo. .!t!re pop!)at"on #ro(t "& not kno(n .or certa"n- Inana)%0"n# t"& &"t!at"on' te data need to be arran#edd"6erent)% &ee tab)e "n te .o))o("n# &)"de


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• A concept o. expected 2a)!e a& been app)"ed to

o!r prob)e$- Te expected 2a)!e "& "#e&t .ora)ternat"2e * - $"))"on


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• Exa$p)e > Uncerta"nt%<• E2en .!rter ana)%&"& a& ca&t do!bt on te

probab")"t% o. te rate& o. pop!)at"on#ro(t- Ne( $ana#e$ent doe&nBt kno( te

probab")"t"e& o. )o(' $ed"!$' or "##ro(t' and "& .aced ("t a prob)e$ !ndercond"t"on& o. !ncerta"nt%- Ob2"o!&)%'&trate#% "& $!c arder to co$e b% "n t"&ca&e-

• Solution- e d"&c!&& tree approace&.ro$ a &et o. &e2era) opt"on& tat ana)%&t&!&e "n te &"t!at"on o. !ncerta"nt%:

maximax, maximin, and principles oinsucient reason.



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I- Te maximax "& an opt"$"&t"c approac- Here te

ana)%&t con&"der& on)% te be&t o!tco$e .or eac

a)ternat"2e re#ard)e&& o. probab")"t%- =ook"n# at

Tab)e * and "#nor"n# te probab")"t% ro(' te

o!tco$e& tat (o!)d be con&"dered are: -F

$"))"on .or a)ternat"2e1' 1-1 $"))"on .or a)ternat"2e

*' - $"))"on .or a)ternat"2e >' and - $"))"on .ora)ternat"2e ?- A$on# te&e' a)ternat"2e * #"2e&

te be&t prot' and t!& &e)ected "n t"& &"t!at"on-


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II- Te &econd approac "& maximin 9 a pe&&"$"&t"c

approac- Here' te ana)%&t con&"der& on)% te

(or&t o!tco$e .or eac a)ternat"2e and &e)ect&

te be&t o. te (or&tB- In Tab)e *' te o!tco$e&

to be con&"dered are: -> $"))"on .or

a)ternat"2e1' -* $"))"on .or a)ternat"2e *' -?

$"))"on .or a)ternat"2e >' and - $"))"on .or

a)ternat"2e ?- Te be&t o. te&e "& a)ternat"2e ?-


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III- Te t"rd approac' te pr"nc"p)e& o. "n&!7c"ent

rea&on ' a&&!$e& tat &"nce (e kno( ab&o)!te)%

not"n# abo!t te probab")"t"e& o. an% &tate o.

nat!re' (e &o!)d treat eac ("t e8!a)

probab")"t%' ca)c!)ate te expected 2a)!e&

accord"n#)%' and coo&e te a)ternat"2e (o&e

expected 2a)!e "& "#e&t- U&"n# t"& approac'

(e (o!)d &e)ect a)ternat"2e ?-


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*- Interdependence A$on#Dec"&"on&

A &econd (a% to c)a&&".% prob)e$&re)ate& to te n!$ber o. dec"&"on &ta#e&tat $!&t be con&"dered-

Prob)e$& can be c)a&&"ed a& &"n#)e9&ta#e or &tat"c< prob)e$& and $!)t"9&ta#e or &e8!ent"a)< prob)e$&-


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S"n#)e9&ta#e and M!)t"9&ta#eprob)e$&

Single Stage Multi Stage

Problem

Enta") e&&ent"a))% one9t"$e9on)%B dec"&"on&-

Enta") &e2era) &e8!ent"a)dec"&"on& re)ated to oneanoter-

Concept

Te dec"&"on "& treateda& ". "t (ere "ndependento. oter dec"&"on&)"ke o!r &!per$arket ca"n

exa$p)e<

Te concern "& not o( to #ettebe&t o!tco$e at an% &"n#)e&ta#e b!t o( to $ake a &er"e&o. co"ce& tat (")) na))% re&!)t

"n te be&to2era)) &et o. o!tco$e& .ro$be#"nn"n# to end.

Exampl

es

•Dec"&"on& concern"n#"n2entor%'•Make or @!% dec"&"on&•Prod!ct $"x•

•Pro;ect $ana#e$ent'•Capac"t% p)ann"n#'•A##re#ate &ced!)"n#-


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Tank Yo!

ch.1- production systems and operations management

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