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OPERATIONS MANAGEMENT (OM)

OPERATIONS MANAGEMENT (OM). Definition:. Management of any activity in which input (resources) are transformed into output (goods or services). Customers. Create value. Create value. Company. Competitors. The Strategic Triangle. EXTERNAL. INTERNAL. CUSTOMER. A Customer Focus.

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OPERATIONS MANAGEMENT (OM)

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  1. OPERATIONS MANAGEMENT (OM)

  2. Definition: • Management of any activity in which input (resources) are transformed into output (goods or services)

  3. Customers Create value Create value Company Competitors The Strategic Triangle

  4. EXTERNAL INTERNAL CUSTOMER A Customer Focus

  5. Get to know customer & competition Cut work process Cut setup & changeover times Produce & deliver at customer’s use rate Cut number of suppliers to few good ones Cut number of components in a product or service Produce easy to make product without error the first time Convert multipath flows to single-channel lanes Arrange workplace Principles of OM

  6. Cross-train for multiple skills Record & retain volume, quality & problem data at workplace Maintain & improve present equipment & human work before thinking a new one Look for cheap & simple equipment Suggest automation when higher quality can be achieved in no other way Continue…..

  7. Continue…. • Seek to have plural rather than singular workstations, machines, cells, and flow lines for each product, service or customer • Become dedicated to continuous, rapid improvement

  8. Managing Operations Resources • Facilities • Capacity • Process/tech choice • Manufacturing Planning and control system (MPC)

  9. Continue…. • Facilities- choices for services - location and design • Capacity - how much to produce or how much client to serve • Process/technology choice “How will the product be made?” “How will the service be provided?”

  10. Continue….. • Manufacturing planning and control systems (MPC) enable the company to move materials through the operation and schedule so that it satisfies customer needs at a minimal cost

  11. Powerful Tools for Modern Operations • Total Quality Management • Just-in-time operations • Lean manufacturing • Computer-integrated Manufacturing • Flexible factories • Mass customization • Logistics • Time-based competition • Reengineering

  12. Total Quality Management • is a way of managing in which everyone iscommitted to continuous improvement of their part of the operation • is a comprehensive approach to improvingproduct quality and thereby customer satisfaction • ISO 9000 • “bias of quality

  13. Just-in-time operations • Calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage in the process precisely at the time needed • “give when needed only”-eliminate waste, reduce cost

  14. Lean Manufacturing • An operation that is both efficient and effective • It strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement

  15. Computer-integrated manufacturing (CIM) • Encompasses a host of computerized production efforts • Computerized process technologies

  16. Flexible Factories • Provide more production options and greater variety of products

  17. Mass Customization • Production of varied, individually customized products at the low cost of standardized, mass-produced products • products manufactured to match each customer’s taste, specifications and budget • Eg. Levi, Hallmark

  18. Logistic • Movement of products from the organization to its customers • Objective - to deliver the right goods in the rightamount to the right place at the right time • Why is logistics so important?

  19. Time-Based Competition • Refers to strategies aimed at reducing the total time it takes to deliver the product or service JIT+ Logistic reduce speed up manufacturing delivery time

  20. Reengineering • Process innovation or core process redesign • Redesign how the working process/task is done

  21. BEST OF LUCK

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