Beruflich Dokumente
Kultur Dokumente
Management
Introduction - Chapter 1
1-1
Outline
What is Operations Management?
Productivity.
1-2
Process
Outputs
Land,
Labor,
Goods
Capital,
Production or Service
Materials,
and
System
Services
Equipment,
Management
1-4
Examples
Production
Service
Auto factories
(assembly plants)
Hospitals
Airlines
Movie theaters
Grocery stores
1-5
Jobs!
1-6
Organizational Functions
Operations.
Marketing.
Generates demand.
Finance/Accounting.
Characteristics of Goods
Tangible product.
Consistent inputs and
outputs.
Production separate from
consumption.
Can be inventoried.
Low customer interaction.
1-8
Characteristics of Service
Intangible product.
Variable inputs and outputs
(people!).
Production and consumption
at same place and time.
No inventories.
High customer interaction.
1-9
75
50
25
25
50
75
100
OM Jobs
1-11
Marketing
Manufacturing
Finance/
Accounting
Operations
Production
Control
Quality
Control
1-12
Purchasing
Marketing
Flight
Operations
Operations
Ground
Support
Facility
Maintenance
1-13
Finance/
Accounting
Catering
Analytical Tools:
Forecasting
Decision-Making
Linear Programming
Break-even analysis
Inventory control
Waiting lines (queueing)
1-15
Heritage of OM
Prior to 1700s - Most products custom-made on a
small scale with local distribution.
Local craftsmen.
Products were handmade and unique.
Industrial Revolution
Mechanized production and distribution.
Allowed mass production and wider distribution.
Fostered division of labor.
1-16
Industrial Revolution
Key developments:
Steam engine (1769).
Interchangeable parts (1798).
Machine tools (1798).
Results:
Production increased.
Prices decreased.
Workers replaced by machines.
Need to manage complex production systems.
1-17
Scientific Management
Study production systems scientifically to
improve them (beginning in 1880s).
There are scientific laws for production
1-18
Related Fields
Operations Management.
Industrial Engineering.
Social and psychological factors.
Operations Research/Management Science
(Mathematical modeling).
Logistics.
1-19
Eli Whitney
Born 1765; died 1825.
1-20
Service economy.
Globalization.
Environmental concerns.
Security.
1-21
Services
40%
Industry
Farming
0
1850
1900
1950
1-22
2000
% of Jobs
Professional Services
Retail & Wholesale
24
21
7
21
2
25
1-23
Productivity
Used to measure of process improvement.
Amount of output relative to input.
Productivity =
Units produced
Inputs used
Input:
Lbs. of food?
Number of employees?
Number of tables?
1-25
Units produced
Inputs used
Labor.
Equipment.
Knowledge.
etc.
1-26
Productivity Variables
Productivity =
Output
Labor + material + energy + capital +
miscellaneous
1-27
Productivity Measurement
Problems
Quality of output should be considered.
1-28
Units produced
Inputs used
What is output?
How is it measured?
What is input?
How is it measured?
1-29
A hospital?
A fire department?
A restaurant?
1-30