P/OM TOPICS:

1. Operations Management
a. Developments in POM
i. Global focus
ii. Customer-driven operations – good quality, cheap, delivered on time
iii. Focusing on core competency – outsourcing, toll manufacturing, subcontracting, off-shore
manufacturing
iv. Strategic alliances
v. Corporate social responsibility
vi. Empowered employees
vii. Entrepreneurship
2. Operations Strategy
a. Operations strategy framework
i. Corporate strategy formulation
ii. Development of business strategies
iii. Determination of operations capabilities/core competency
iv. Operations goal setting
v. Operations strategy formulation
1. Strategic P/OM decisions
a. What business is the organization in?
b. What are the core activities of the organization?
c. What are the products and services to be provided?
d. What activities need to be subcontracted out to other organizations within the
supply chain?
e. With which other companies does this organization wish to be linked in order to
develop expertise?
f. Where should facilities be located?
g. How large should the facilities be?
h. How should products/services be made or delivered?
i. What technology type should be adopted to gain competitive advantage?
2. Tactical P/OM decisions
a. How should operations be arranged (layout)?
b. How much should be produced (aggregate planning)?
c. How can planned quality be achieved (quality assurance)?
d. How should distribution be organized?
e. How often should machines/equipment be maintained?
f. How many people should be employed?
g. What technology level is appropriate for planned production?
h. Is it better to make or buy components/materials?
3. Operational P/OM decisions
a. In what order should products be made?
b. How much materials should be ordered and when?
c. Are products reaching desired quality?
d. How often does equipment break down?
e. When can maintenance work be done?
f. What is the best way to do a particular task?
g. How long should an operation take?
b. Operations capabilities/ competitive dimensions
i. Cost
ii. Quality
iii. Delivery speed
iv. Delivery reliability
v. Flexibility
vi. Innovativeness
c. Generic manufacturing strategies
i. Marketeer – quality consistency, reliable delivery, product range
ii. Innovator – quality consistency, product performance, delivery speed, new product development
and introduction speed
iii. Caretaker – price, reliable delivery, quality consistency
iv. Reorganizer – quality consistency, product performance, manufacturing flexibility, delivery speed
3. Product and Service Design
 a. Factors in product design
i. Product life cycle
ii. Customer requirements
iii. Manufacturability considerations
iv. Product development costs
v. Frequency of and costs related to product design changes
vi. Quality considerations
b. Product development process
i. Idea generation
ii. Idea screening
iii. Feasibility study
iv. Product designing – prototyping, test for manufacturability, design modifications
v. Test for commerciability
vi. Finalization of product design
c. Concurrent engineering
d. Service design
i. Customer
ii. What service package will be delivered?
iii. Human resource requirements
iv. Where should it be located?
v. How will it be rendered? – technology, service quality
4. Process Design
a. Scope
i. Determine methods of manufacturing – process type, technology, equipment
ii. Determine all other resources to make the process run
iii. Install facilities and equipment
iv. Establish control measures
b. Process types
i. Process-focused – low volume, high product variety (Project/job shop)
ii. Repetitive-focused – medium volume and product variety (Batch/assembly line)
iii. Product-focused – high volume, low product variety (Continuous)
c. Service operations
i. Professional service – high customer involvement, low capital intensity (consultants)
ii. Service shop – high customer involvement, high capital intensity (hospitals)
iii. Service factory – low customer involvement, high capital intensity (public transport)
iv. Mass service – low customer involvement, low capital intensity (wholesalers)
d. 4 Stages of service competitiveness
i. Available for service – don’t prefer them but don’t have a choice
ii. Journeyman – have a choice but don’t patronize it
iii. Distinctive competence achieved – famous in locality
iv. World class service delivery
5. Facilities Management
a. Location
i. Location decision factors
1. Country factors
2. Technological factors
3. Product factors
4. Locating manufacturing facilities
ii. Location strategy for manufacturing: proximity to suppliers; location a major determinant of cost
iii. Location strategy for service: proximity to markets; location a major determinant of revenue
b. Layout
i. Classical layout types
1. Flow-line layout – activities in a line along which the product moves; product-focused
2. Layout by process – group equipment and people that perform the same function
3. Layout by fixed position – work item does not move, e.g. construction projects
ii. Factors in layout selection
1. Volume of production
2. Cost of building to house the operation
3. Product mix that must share the facility
4. Need for versatility and flexibility
5. Required level of communication and supervision
6. Human Resources
 a. Guidelines on developing a strategic HRM
i. Understand the business environment – OT
ii. Understand the company’s strengths and weaknesses – SW
iii. Conduct own analysis of HR issues emerging from changes in the business environment
iv. Determine strategic HR interventions from the issues identified
v. Identify champions of change and get support for strategic HR interventions
b. Behavioral considerations in job design
i. Degree of specialization
ii. Job modifications – job rotation, job enlargement, job enrichment
iii. Motivation – rewards
7. Supply Chain Management
a. SCM structures
i. Baseline – purchasing a clerical job
ii. Functional integration – attempt to integrate materials management; coordination only
iii. Internal integration – integrating what used to be separate units
iv. External integration – strategic partnerships
b. Demand management
i. Collaborative forecasting – buyer and supplier know the demand for the product
c. Supply management
8. Supply Chain Operations
a. Plan
i. Aggregate planning – preparation of a production plan (amount to produce for each period)
ii. Inventory management: economic order quantity
1. When to order
2. How much to order
b. Source
i. Procurement function
1. Purchasing
2. Consumption management
3. Vendor selection
4. Contract negotiation
5. Contract management
c. Make
i. Product design
ii. Production scheduling
iii. Facility management
d. Deliver
i. Order management
ii. Delivery scheduling
9. Resource Planning Systems
a. MRP (Material Requirements Plan)
b. MRP II (Manufacturing Resources Planning)
c. MRP III (Money Resource Planning)
d. ERP (Enterprise Resource Planning) – a method for the effective planning and controlling of all the
resources needed to take, make, ship and account for customer orders in a manufacturing, distribution, or
service company
10. Lean Manufacturing – business model/collection of advanced methods that focuses on eliminating waste while
delivering quality products at the lowest cost to manufacturer and consumer
a. 7 Wastes – processing, product defects, inventory, transportation, motion, overproduction, waiting time
b. Elements of lean production
i. Devolution of responsibilities to front-line workers
ii. Organization in work teams
iii. Employee involvement in continuous improvement
iv. Visual factory controls
v. Use of JIT to eliminate in-process buffers and eliminate waste
c. Components of lean production
i. Kaizen – rapid improvement processes
ii. 5S – seiri (organization), seiton (orderliness), seiso (cleanliness), seiketsu (standardized
cleanup), shitsuke (discipline)
iii. TPM (Total Productive Maintenance) – preventive maintenance, corrective maintenance,
maintenance prevention, breakdown maintenance
iv. Cellular manufacturing – autonomation (mechanism to stop the line when abnormalities occur)
 v. Six sigma – 3.4 defects per million opportunities
vi. JIT – reduce inventory, level production
1. Ideal operating environment for JIT
a. Few suppliers in close proximity
b. Strong relations with close-knit supplier base
c. Company suppliers delivering JIT
d. Kanban system in operation
e. Highly motivated work force
d. Issues on lean production
i. Meeting critical requirements for lean production
1. Reliable and stable customer demand
2. Good supplier quality and dependability
3. Synchronous manufacturing
4. Good quality system
5. Employee commitment, top management commitment
ii. Integrating Japanese manufacturing practices with existing manufacturing systems
iii. Limitations of the lean concept
1. Impact of general business conditions on stability of production systems
2. Reality of long-term and cooperative relationship between buyers and sellers
3. Impact of industry structure and the kinds of markets between buyers and sellers on
production systems
4. Universality of the applications of the lean concept
11. Quality Management
a. Dimensions of quality for goods
i. Operation
ii. Reliability and durability
iii. Conformance
iv. Serviceability
v. Appearance
vi. Perceived quality
b. TQM
i. Components
1. Top management commitment
2. Strategic quality planning
3. Benchmarking
4. Quality information management
5. Process management and control
6. Customer orientation
7. Product design strategy
8. Supplier quality management
9. Human resource management
10. Employee education and training
11. Workplace organization and orderliness
12. Continuous improvement orientation
c. Six Sigma
12. Balanced Business Scorecard
a. Perspectives
i. Financial
ii. Customer
iii. Internal business processes
iv. Learning and growth
b. BSC implementation
i. Start with company strategy
ii. Perform strategic mapping
iii. Develop the measures