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Introduction to business: operations management
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Ted Major
April 19, 2016
Education
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Introduction to business: operations management
CC-BY-SA
Ted Major
April 19, 2016
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Transcript
Operations management cc licensed ( BY NC ND ) flickr
photo by Michael Holden: http://flic.kr/p/dwpLTP
Quiz • Closed book/closed notes • You may collaborate with
your team • You are responsible for the answers on your quiz • You do not have to choose the same answers as your team • Put phones away
Operations management • Operations: production of goods & services
value-added activities to convert inputs into outputs management of resources distribution of goods & services
creative commons licensed (BY-SA) flickr photo by r3v || cls
http://flickr.com/photos/xt0ph3r/3591236086 Operations management is a system
creative commons licensed (BY-NC) flickr photo by Jukie Bot: https://flic.kr/p/69a35f
• efficiency • low cost • "doing the thing right"
• effectiveness • quality • "doing the right thing"
inputs->outputs
inputs?
Capital photo: Library of Congress
creative commons licensed (BY-NC-ND) flickr photo by jcolman: https://flic.kr/p/6rxrjx Human
resources
Natural resources flickr photo by matt.hintsa https://flic.kr/p/5tGgz8 shared under a
Creative Commons (BY-NC-ND) license
Information flickr photo by BobMical https://flic.kr/p/nK7kRW shared under a Creative
Commons (BY) license
Raw materials photo: Library of Congress
Customers flickr photo by eliduke https://flic.kr/p/21VsRf sh under a Creative
Commons (BY-SA) license
outputs?
Goods flickr photo by <Fernando> https://flic.kr/p/6qHcTW shared under a Creative
Commons (BY-NC-SA) license
Services photo: Library of Congress
creative commons licensed (BY) flickr photo by nateOne: https://flic.kr/p/6mZSmM
Difference between goods & services • intangibility • customization •
customers • perishability
Servicescape flickr photo by gorriti https://flic.kr/p/d48rf shared under a Creative
Commons (BY-SA) license
Servicescape characteristics Ambience Functionality Signs/symbols/artifacts
production methods?
flickr photo by ZakVTA https://flic.kr/p/5FM2b6 shared under a Creative Commons
(BY-NC-SA) license
C.F. Martin & Co. Custom Shop photo ©www.martinguitar.com/
Howard Klepper Guitars: Every guitar I build is a one-of-
a-kind, custom instrument. I have no standard model names or numbers. I work slowly; my output is about 10 guitars each year. I work on my guitars one at a time, and do not have more than two under construction--in different stages--at any time. This allows me always to be attentive to an instrument's unique qualities. It also allows me to keep feeling that my work is fun. photo ©www.alliedlutherie.com
capacity planning
how much?
forecast demand
too little?
too much?
facility location?
None
None
• Shipping/transportation • Employees • Low costs • Financial incentives
• Energy • Standard of living • Land • Materials
flickr photo by missha https://flic.kr/p/4ndKGt shared under a Creative Commons
(BY-NC-SA) license
flickr photo by BenFrantzDale https://flic.kr/p/5vbm6 shared under a Creative Commons
(BY-NC-SA) license
None
flickr photo by JeepersMedia https://flic.kr/p/nWV6oA shared under a Creative Commons
(BY) license
inventory
what's wrong with inventory?
JIT Just in Time
what's wrong with JIT?
flickr photo by DVIDSHUB https://flic.kr/p/9r3NuZ shared under a Creative Commons
(BY) license
effects?
None
quality • quality control • inspection • quality assurance •
process
total quality management (TQM) • management commitment • customer satisfaction
• employee involvement • continuous improvement ©2007 Prentice Hall 4-47
statistical process control • 6σ • Fewer than 3.4 defects
per million • 99.99966% yield • define • measure • analyze • improve • control
benchmarking
certification • ISO: int'l org. for standards • ISO 9000:
quality • ISO 14000: environmental