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,Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,Chapter Eighteen,Operations Management,Chapter Objectives(1 of 2),Describe the role of the transformation process in operations management,Explain what factors determine organizational productivity,Discuss what re-engineering of work processes involves,Describe how adding a“manufacturing focus”to organizational strategy affects an organization,Identify the four key decisions that provide the long-term strategic direction for operations planning,Chapter Objectives(2 of 2),Describe the three decisions that make up tactical operations planning,Identify the three approaches to maintenance control,Explain the contingency factors that affect the implementation of TQM,Discuss the advantages and potential problems of just-in-time(JIT)inventory systems,Explain how flexible manufacturing systems could give an organization a competitive advantage,Describe how speed can be a competitive advantage,The Operations System,Inputs,People,Technology,Capital,Equipment,Material,Information,Transformation,process,Outputs,Goods,Services,Figure 19-1,Demings 14 Points for Improving Managements Productivity,1.Plan for the long-term future,not for next month or next year.,2.Never be complacent concerning the quality of your product.,3.Establish statistical control over your production processes and require your suppliers to do so as well.,4.Deal with the fewest number of suppliers-the best ones,of course.,5.Find out whether your problems are confined to particular parts of the production process or stem from the overall process itself.,Table 19-1a,Demings 14 Points for Improving Managements Productivity,6.Train workers for the job that you are asking them to perform.,7.Raise the quality of your line supervisors.,8.Drive out fear.,9.Encourage departments to work closely together rather than to concentrate on departmental or divisional distinctions.,10.Do not be sucked into adopting strictly numerical goals,including the widely popular formula of“zero defect.”,Table 19-1b,Demings 14 Points for Improving Managements Productivity,11.Require your workers to do quality work,not just to be at their stations from 9 to 5.,12.Train your employees to understand statistical methods.,13.Train your employees in new skills as the need arises.,14.Make top managers responsible for implementing these principles.,Table 19-1c,Characteristics of Services,Services,Intangible,Cant be stored,in inventory,Involve customer or,client in actual production,Service,Organizations,Produce,Figure 19-2,Decisions Made in Planning Operations,What,is to be,produced?,How many,are to be,produced?,Where are,they to be,produced?,Which,production,methods are,to be used?,How should,equipment and,workstations,be arranged?,Capacity,Planning,Facilities,Location,Planning,Process,Planning,Facilities,Layout,Planning,Strategic Operations Plans,Whats the over-,all production plan for all products?,(Typically for the,year),Aggregate,Planning,How many units of,each product will,be produced?,(Typically for the,month),Master,Scheduling,What materials,are needed to,satisfy the,master schedule?,Materials,Requireemnts,Planning,Tactical Operations Plans,Compre-,hensive,Operations,Plans,Figure 19-3,A Process Layout at a Medical Clinic,Neurology,Obstetrics/Gynecology,Rest Rooms,Reception room,Pediatrics,Pharmacy,X-ray,Laboratory Tests,Plastic and,Recon-,structive,Surgery,Patient,enters,clinic,Patient,exits,clinic,Patient,Waiting,Area,Figure 19-4,A Product Layout in an Aluminum Tubing Plant,Raw,Alum.,Ingot,Receiving,Dept.,Casting,Dept.,Press,Dept.,Tube,Dept.,Finishing,Dept.,Inspection,Dept.,Packing,Dept.,Shipping,Dept.,Shipped,to,plant,Ingot,accepted,Ingot,melted,Metal,pressed,into,large,tubes,Large,tubes,stretched,into,various,dimensions,Finished,tubing is,cleaned,Finished,tubes,inspected,Finished,tubes,packed,Finished,tubes,shipped,to,customers,Figure 19-5,Developing a Master Schedule from an Aggregate Plan,From the Aggregate Plan(units per month),Months,Heavy-Duty,Transmission,Standard,Transmission,Economy,Transmission,Total,July,August,September,October,November,100,75,75,125,80,45,120,70,60,130,100,70,120,100,80,250,250,250,300,300,July,August,Weeks,1176,1177,1178,1179,1180,1,2,3,4,5,6,7,8,0,0,0,10,15,0,0,5,10,10,0,0,10,5,10,0,0,0,10,15,0,0,0,10,20,0,15,15,5,0,20,10,0,0,Master Schedule for Heavy-Duty Transmission(units),0,20,0,10,0,0,Total 100,Total 125,Heavy-Duty Models,Inventory Cycle with Safety Stock,300,250,200,150,100,50,0,4 8 12 16 20 24 28 32 36 40 44 48 52,Quantity on Hand(in units),Reorder,point,Safety,stock,level,Time(in weeks),Figure 19-7,Example of an ABC Inventory System,10 20 30 40 50 60 70 80 90 100,Total Dollar Value(%),Total Number of Items(%),100,90,80,70,60,50,40,30,20,10,0,A,items,B,items,C,items,Figure 19-8,
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