Professional Documents
Culture Documents
Rock music memorabilia Creates value in the form of good food and entertainment 3,500+ custom meals per day in Orlando How does an item get on the menu? Role of the Operations Manager
2
Organizational Charts
Commercial Bank
Operations
Teller Scheduling Check Clearing Collection Transaction processing Facilities design/layout Vault operations Maintenance Security
Finance
Investments Security Real estate Accounting
Marketing
Loans Commercial Industrial Financial Personal Mortgage Trust Department
Auditing
Airline
Operations
Ground support equipment Maintenance Ground Operations Facility maintenance Catering Flight Operations Crew scheduling Flying Communications Dispatching Management science
Finance/ accounting
Accounting Payables Receivables General Ledger Finance Cash control International exchange
Marketing
Traffic administration Reservations Schedules Tariffs (pricing) Sales Advertising
Organizational Charts
Manufacturing
Operations
Facilities
Construction; maintenance
Finance/ accounting
Disbursements/ credits Receivables Payables General ledger Funds Management Money market International exchange Capital requirements Stock issue Bond issue and recall
Marketing
Sales promotion Advertising Sales Market research
Design
Product development and design Detailed product specifications
Industrial engineering
Efficient use of machines, space, and personnel
Process analysis
Development and installation of
Why Study OM? OM is one of three major functions (marketing, finance, and operations) of any organization We want (and need) to know how goods and services are produced We want to understand what operations managers do OM is such a costly part of an organization
8
Current
Sales Cost of Goods Gross Margin Finance Costs Subtotal Taxes at 25% Contribution $100,000 80,000 20,000 6,000 14,000 3,500 $ 10,500
Increase Reduce Sales Finance Revenue 50% Costs 50% $150,000 120,000 30,000 6,000 24,000 6,000 $ 18,000 $100,000 80,000 20,000 3,000 17,000 4,250 $ 12,750
Ten Critical Decisions Ten Decision Areas Service and product design Quality management Process and capacity design Location Layout design Human resources, job design Supply-chain management Inventory management Scheduling Maintenance
11
Quality management
How do we define quality? Who is responsible for quality?
12
Location
Where should we put the facility? On what criteria should we base the location decision?
13
Maintenance
Who is responsible for maintenance? When do we do maintenance?
16
The Heritage of OM
Division of labor (Adam Smith 1776; Charles Babbage 1852) Standardized parts (Whitney 1800) Scientific Management (Taylor 1881) Coordinated assembly line (Ford/ Sorenson/Avery 1913) Gantt charts (Gantt 1916) Motion study (Frank and Lillian Gilbreth 1922) Quality control (Shewhart 1924; Deming 1950)
17
From
New Challenges in OM
To
Local or national focus Batch shipments Low bid purchasing Lengthy product development Standard products Job specialization
Global focus Just-in-time Supply chain partnering Rapid product development, alliances Mass customization Empowered employees, teams
18
Random disturbances
Inputs
Transformation process
Outputs
Feedback mechanisms
19
Quality of Inputs monitored Inputs Raw minds (students) Teachers Administrative Staff Classrooms Computer Lab Library Projectors (OHP, LCD, etc.)
Random disturbances Strikes of students, teachers, or staff Undue interference of the government in the working of institutions
Quality of School Amity Business outputs monitored Outputs Englightened students with good communication skills pleasant personalities leadership qualities good analytical ability team spirit decision- making abilities computer skills
Transformation process
Feedback mechanisms Success at placement interviews Grades obtained in examinations Rising career graph of alumni in corporates Number of applications for admission in the institute Ratings of surveys
20
Quality of School Amity Business outputs monitored Outputs Customers satisfied with good preparations of the food pleasant behaviour and personality of the waiters appropriate prices charged
Inputs
Customers Waiters Chefs Manager Furniture Building Food
Transformation process
21
Quality of Inputs monitored Inputs Machines and equipments Components, Parts, sub assemblies, Office Infrastructure (computers, furniture etc) Packaging material Capital Building Workers Managers
Random disturbances High turnover of workers and managers Quality of School Amity Business outputs Recession monitored Govts taxation policy Strikes instigated by Outputs trade unions Refrigerators with good cooling performance less consumption Transformation of electricity good after sales process service genuine prices new advanced features Feedback mechanisms Rising sales volumes lesser customer complaints Positive response of customers in the feedback forms
22
Process Design:
Transformation Process can be of various types: Continuous Process, Semi-continuous Process, Intermittent Process,
Batch Process Job shop
Projects
23
Characteristics of Goods
Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction
24
Characteristics of Service
Intangible product Produced and consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed
25
Services
Manufacturing
30
20 10 0
Hong Kong
Japan
Russian Fed
Czech Rep
France
Germany
Canada
Mexico
South Africa
China
Spain
UK
Australia
US
26
27
75
|
50
|
25
|
0
|
25
|
50
|
75
|
100%
|
Operations Strategy
Strategy Formulation Consists of four basic steps: Defining a primary task, Assessing core competencies, Determining order qualifiers and order winners, and Positioning the firm.
29
30
3. demographic change
4. Technological change Brainstorming 5. Political/legal change is a useful tool 6. Market practice, professional standards, suppliers, distributors
31
Product Specifications Scope for design and Design Review engineering teams Test Market
Introduction Evaluation
33
Relationship Matrix
House of Quality Example Your team has been charged with designing a new camera for Great Cameras, Inc.
36
Interrelationships
Relationship Matrix
3 4 5 2 1
37
Analysis of Competitors
Interrelationships
Relationship Matrix
3 4 5 2 1
Relationship matrix
38
Analysis of Competitors
Interrelationships
Relationship Matrix
Aluminum components
Ergonomic design
Auto exposure
Auto focus
39
Interrelationships
Relationship Matrix
3 4 5 2 1
22
27 27
32
25
Analysis of Competitors
40
Interrelationships
Relationship Matrix
How well do competing products meet customer wants Lightweight Easy to use Reliable Easy to hold steady No double exposures Our importance ratings 3 4 5 2 1 22 5
Company A G G F G P
Interrelationships
Relationship Matrix
Analysis of Competitors
Company A 0.7 60% yes 1 Technical evaluation Company B 0.6 50% yes 2 Us 0.5 75% yes 2
2 circuits
Technical attributes
2 to 0.5 A 75%
ok G ok F ok G
42
Panel ranking
43
House 1
House 2
House 3
House 4
44