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Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,McGraw-Hill/Irwin,Operations Management, Seventh Edition, by William J. Stevenson,Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.,Introduction to Operations Management,Operations Management,Organization,Finance,Operations,Marketing,The management of systems or processes that,create goods and/or provide services,Introduction to Operations Management,Operations Management includes:,Forecasting,Capacity planning,Scheduling,(时间进度安排),Managing inventories,Assuring quality,Motivating employees,And more . . .,Introduction to Operations Management,Business Operations Overlap,Marketing,Operations,Finance,Introduction to Operations Management,Stage of Production,Value Added,Value of Product,Farmer produces and harvests wheat,$0.15,$0.15,Wheat transported to mill,磨坊,$0.08,$0.23,Mill produces flour,面粉,$0.15,$0.38,Flour transported to baker,面包厂,$0.08,$0.46,Baker produces bread,$0.54,$1.00,Bread transported to grocery store,$0.08,$1.08,Grocery store displays and sells bread,$0.21,$1.29,Total Value-Added,$1.29,Introduction to Operations Management,Types of Operations,Operations,Examples,Goods Producing,Farming, mining, construction,manufacturing, power generation,Storage/Transportation,Warehousing, trucking, mail,service, moving, taxis, buses,hotels, airlines,Exchange,Retailing, wholesaling, banking,renting, leasing, library, loans,Entertainment,Films, radio and television,concerts, recording,Communication,Newspapers, radio and television,newscasts, telephone, satellites,Introduction to Operations Management,Food Processor,Inputs,Processing,Outputs,Raw Vegetables,Cleaning,Canned vegetables,Metal Sheets,Making cans,Water,Cutting,Energy,Cooking,Labor,Packing,Building,Labeling,Equipment,Introduction to Operations Management,Hospital Process,Inputs,Processing,Outputs,Doctors, nurses,Examination,Healthy patients,Hospital,Surgery,Medical Supplies,Monitoring,Equipment,Medication,Laboratories,Therapy,Introduction to Operations Management,Decision Making,System Design,Capacity,生产能力,Location,选址,arrangement of departments,部门设置,product and service planning,acquisition and placement of,Equipment,设备采购和布置,Introduction to Operations Management,Decision Making,System operation,personnel,inventory,scheduling,project,management,quality assurance,Introduction to Operations Management,Models,A model is an abstraction of reality.,Physical,Schematic,Mathematical,What are the pros and cons of models?,Tradeoffs,Introduction to Operations Management,Quantitative Approaches,Linear programming,Queuing Techniques,Inventory models,Project models,Statistical models,Introduction to Operations Management,The Internet,E-Business,Supply Chain Management,Recent Trends,Introduction to Operations Management,Suppliers Suppliers,DirectSuppliers,Producer,Distributor,Final,Consumer,Simple Product Supply Chain,Introduction to Operations Management,Continuing Trends,Quality and process improvement,Technology,Globalization,Operations strategy,Environmental issues,Introduction to Operations Management,Chapter 2,Competitiveness, Strategy, and,Productivity,Competitiveness:,How effectively an organization meets the needs of customers relative to others that offer similar goods or services,Competitiveness,Quality,Price,Time,Flexibility,Differentiation,Service,Banks, ATMs,Convenience,Location,Disneyland,Nordstroms,Superior customer service,Service,Burger King,Supermarkets,Variety,Volume,Flexibility,Express Mail,One-hour photo,Rapid deliveryOn-time delivery,Time,Sony TV,Lexus, Cadillac,Pepsi, Kodak, Motorola,High-performance design or high quality Consistent quality,Quality,U.S. first-class postage,Motel-6, Red Roof Inns,Low Cost,Price,Examples of Distinctive Competencies,Economic conditions,Political conditions,Legal environment,Technology,Competition,Markets,Key External Factors,Human Resources,Facilities and equipment,Financial resources,Customers,Products and services,Technology,Suppliers,Key Internal Factors,Measures of Productivity,Table 2-4,Partial,Output Output Output Output,measures,Labor Machine Capital Energy,Multifactor,Output Output,measures,Labor + Machine Labor + Capital + Energy,Total,Goods or Services Produced,measure,All inputs used to produce them,Units of output per kilowatt-hour,Dollar value of output per kilowatt-hour,Energy Productivity,Units of output per dollar input,Dollar value of output per dollar input,Capital Productivity,Units of output per machine hour,machine hour,Machine Productivity,Units of output per labor hour,Units of output per shift,Value-added per labor hour,Labor Productivity,Examples of Partial Productivity Measures,Table 2-5,10,000 units/500hrs =,20 units/hour,or we can arrive at a,unitless,figure,(10,000 unit* $10/unit)/(500hrs* $9/hr) =,22.22,Can you think of any advantages or disadvantages of each approach?,Example-Labor Productivity,Factors Affecting Productivity,Capital,Quality,Technology,Management,Standardization,Use of Internet,Computer viruses,Searching for lost or misplaced items,Scrap rates,New workers,Cuts in health benefits,Factors Affecting Productivity,Safety,Shortage of IT workers,Layoffs,Labor turnover,Design of the workspace,Incentive plans that reward productivity,Factors Affecting Productivity,Improving Productivity,Develop productivity measures,Determine critical (bottleneck) operations,Develop methods for productivity improvements,Establish reasonable goals,Get management support,Measure and publicize improvements,Dont confuse productivity with efficiency,Chapter 9,Introduction to Quality,Quality Management,What does the term,quality,mean?,Quality,is the ability of a product or service to consistently meet or exceed customer expectations.,Dimensions of Quality,Performance,- main characteristics of the product/service,Aesthetics,- appearance, feel, smell, taste,Special features,- extra characteristics,Conformance,- how well product/service conforms to customers expectations,Safety,- Risk of injury,Reliability,- consistency of performance,Dimensions of Quality (Contd),Durability,-,useful life of the product/service,Perceived Quality -,indirect evaluation of quality (e.g. reputation),Service after sale -,handling of customer complaints or checking on customer satisfaction,Examples of Quality Dimensions,Table 9-1,Examples of Quality Dimensions (Contd),Table 9-1,The Consequences of Poor Quality,Loss of business,Liability,Productivity,Costs,Top management,Design,Procurement,Production/operations,Quality assurance,Packaging and shipping,Marketing and sales,Customer service,Responsibility for Quality,Costs of Quality,Failure Costs - costs incurred by defective parts/products or faulty services.,Internal Failure Costs,Costs incurred to fix problems that are detected before the product/service is delivered to the customer.,External Failure Costs,All costs incurred to fix problems that are detected after the product/service is delivered to the customer.,Costs of Quality (continued),Appraisal Costs,All product and/or service inspection costs.,Prevention Costs,All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring,Key Contributors to Quality Management,Table 9-6,Malcolm,Baldrige,National Quality Award,1.0 Leadership,2.0 Strategic Planning,3.0 Customer and Market Focus,4.0 Information and Analysis,5.0 Human Resource Development and Management,6.0 Process Management,7.0 Business Results,Table 9-7,The Deming Prize,Honoring W. Edwards Deming,Japans highly coveted award,Main focus on statistical quality control,Chapter 10,Quality Control,Inspection,How Much/How Often,Where/When,Centralized vs. On-site,Inputs,Transformation,Outputs,Acceptance,sampling,Process,control,Acceptance,sampling,Figure 10-2,Examples of Inspection Points,Table 10-1,Statistical Process Control,: Statistical evaluation of the output of a process during production,Statistical Process Control,The Control Process,Define,Measure,Compare to a standard,Evaluate,Take corrective action,Evaluate corrective action,Statistical Process Control,Variations and Control,Random variation: Natural variations in the output of process, created by countless minor factors,Assignable variation: A variation whose source can be identified,Sampling Distribution,Samplingdistribution,Processdistribution,Mean,Figure 10-4,Normal Distribution,Mean,95.44%,99.74%,Standard deviation,Figure 10-5,Control Limits,Samplingdistribution,Processdistribution,Mean,Lowercontrollimit,Uppercontrollimit,Figure 10-6,Control Chart,0,1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,UCL,LCL,Sample number,Mean,Out ofcontrol,Normal variationdue to chance,Abnormal variationdue to assignable sources,Abnormal variationdue to assignable sources,Figure 10-8,Control Chart for Attributes,p-Chart - Control chart used to monitor the proportion of defectives in a process,c-Chart - Control chart used to monitor the number of defects per unit,Use of p-Charts,When observations can be placed into two categories.,Good or bad,Pass or fail,Operate or dont operate,When the data consists of multiple samples of several observations each,Table 10-3,Use of c-Charts,Use only when the number of occurrences per unit of measure can be counted; non-occurrences cannot be counted.,Scratches, chips, dents, or errors per item,Cracks or faults per unit of distance,Breaks or Tears per unit of area,Bacteria or pollutants per unit of volume,Calls, complaints, failures per unit of time,Table 10-3,
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