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Module #01

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The document outlines key concepts in operations management including transformation processes, productivity measures, and the evolution of operations management approaches over time. It discusses the roles of operations management in designing goods and services, managing quality, and planning supply chains and inventories. Productivity is defined as the ratio of outputs to inputs, with total productivity measuring outputs against all resources used. The document provides examples of partial and multifactor productivity measures.

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1. Operations and Productivity
Outline Operations Management Roles of OM The OM Heritage Goods vs. Services Productivity Productivity Measures
Operations Management? Operations Management is the set of activities that creates value in the form of goods/services by transforming inputs into outputs. OM is defined as the design , operation , and improvement of the systems that create & deliver firms primary products/services.
What is a Transformation Process? A transformation process is defined as a user of resources to transform inputs into some desired outputs
Physical - Manufacturing Locational - Transportation Exchange - Retailing Storage - Warehousing Physiological - Health Care Informational - Telecommunications Transformation Process (6-ways)
油
油
Roles of OM Design of Goods/Services Managing Quality Process Design Facility Location & Layout Job Design & Measurement Supply Chain Management Inventory Management Sales & Operations Planning Scheduling/Maintenance Project Management
The Heritage of OM COST FOCUS Early Concepts (1776-1880) Scientific Management Era (1880-1910) Mass Production Era (1910-1980) QUALITY FOCUS Lean Production Era (1980-1995) CUSTOMIZATION FOCUS Mass Customization Era (1995-till date)
Legends of OM Adam Smith (1776) Labor Specialization Eli Whitney (1800) Standardized Parts
Legends of OM F.W. Taylor (1881) The Principles of Scientific Management Frank/Lillian Gilbreth Motion Study (Therbligs)
Legends of OM Henry Gantt Gantt Chart/Project Activity Agner Erlang Queuing Theory/Traffic Engg.
Legends of OM Henry Ford Model-T/Moving Assemble Line F.W. Harris (1913) Economic Order Quantity (EOQ)
Legends of OM Walter Shewhart (1924) Statistical Sampling W. Edward Deming (1950) 14-points to Management
Goods vs. Services Tangible vs. Intangible Customer Interaction.Low vs. High Homogeneous vs. Heterogeneous Process.Perishable & Time Dependent Evaluation.Package of Features
The Goods-Services Continuum
If you drop it on your foot, it wont hurt you. (Good or Service?) Services never include goods and goods never include services. (True or False?)
= Outputs Inputs Productivity Productivity is the ratio of outputs (goods and services) divided by inputs (resources such as labor and capital). Productivity Variables: Labor, Capital, and Management
Total Measure Productivity Total Measure Productivity = Outputs Inputs or = Goods and Services Produced All Resources Used
Partial Measure Productivity Partial Measures of Productivity = Output or Output or Output or Output Labor Capital Materials Energy
Multifactor Measure Productivity Multifactor Measures of Productivity = Output Labor + Capital + Energy or Output Labor + Capital + Materials
油
Problem An automobile manufacturing company has provided the following data. Compare the labor, raw materials & supplies, and total productivity of 2007 and 2008.
Solution
Whats Next? Chapter-2 Forecasting Importance of Forecasting

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Module #01

  • 1. 1. Operations and Productivity
  • 2. Outline Operations Management Roles of OM The OM Heritage Goods vs. Services Productivity Productivity Measures
  • 3. Operations Management? Operations Management is the set of activities that creates value in the form of goods/services by transforming inputs into outputs. OM is defined as the design , operation , and improvement of the systems that create & deliver firms primary products/services.
  • 4. What is a Transformation Process? A transformation process is defined as a user of resources to transform inputs into some desired outputs
  • 5. Physical - Manufacturing Locational - Transportation Exchange - Retailing Storage - Warehousing Physiological - Health Care Informational - Telecommunications Transformation Process (6-ways)
  • 6. 油
  • 7. 油
  • 8. Roles of OM Design of Goods/Services Managing Quality Process Design Facility Location & Layout Job Design & Measurement Supply Chain Management Inventory Management Sales & Operations Planning Scheduling/Maintenance Project Management
  • 9. The Heritage of OM COST FOCUS Early Concepts (1776-1880) Scientific Management Era (1880-1910) Mass Production Era (1910-1980) QUALITY FOCUS Lean Production Era (1980-1995) CUSTOMIZATION FOCUS Mass Customization Era (1995-till date)
  • 10. Legends of OM Adam Smith (1776) Labor Specialization Eli Whitney (1800) Standardized Parts
  • 11. Legends of OM F.W. Taylor (1881) The Principles of Scientific Management Frank/Lillian Gilbreth Motion Study (Therbligs)
  • 12. Legends of OM Henry Gantt Gantt Chart/Project Activity Agner Erlang Queuing Theory/Traffic Engg.
  • 13. Legends of OM Henry Ford Model-T/Moving Assemble Line F.W. Harris (1913) Economic Order Quantity (EOQ)
  • 14. Legends of OM Walter Shewhart (1924) Statistical Sampling W. Edward Deming (1950) 14-points to Management
  • 15. Goods vs. Services Tangible vs. Intangible Customer Interaction.Low vs. High Homogeneous vs. Heterogeneous Process.Perishable & Time Dependent Evaluation.Package of Features
  • 17. If you drop it on your foot, it wont hurt you. (Good or Service?) Services never include goods and goods never include services. (True or False?)
  • 18. = Outputs Inputs Productivity Productivity is the ratio of outputs (goods and services) divided by inputs (resources such as labor and capital). Productivity Variables: Labor, Capital, and Management
  • 19. Total Measure Productivity Total Measure Productivity = Outputs Inputs or = Goods and Services Produced All Resources Used
  • 20. Partial Measure Productivity Partial Measures of Productivity = Output or Output or Output or Output Labor Capital Materials Energy
  • 21. Multifactor Measure Productivity Multifactor Measures of Productivity = Output Labor + Capital + Energy or Output Labor + Capital + Materials
  • 22. 油
  • 23. Problem An automobile manufacturing company has provided the following data. Compare the labor, raw materials & supplies, and total productivity of 2007 and 2008.
  • 25. Whats Next? Chapter-2 Forecasting Importance of Forecasting

Editor's Notes

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