1 / 73

Operations Management

Operations Management. BUSN 6110/PROC 5820 Thursday Night. Syllabus. Class 1 (Oct 22): chap 1; chap 2, case study Class 2: (Oct 29) Chap 6, Chap 8 Class 3: (Nov 5) chap 10, chap 11, Chap 17(Take home exam) November 12 – Post Training Holiday – no class

Gabriel
Télécharger la présentation

Operations Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Operations Management BUSN 6110/PROC 5820 Thursday Night

  2. Syllabus • Class 1 (Oct 22): chap 1; chap 2, case study • Class 2: (Oct 29) Chap 6, Chap 8 • Class 3: (Nov 5) chap 10, chap 11, Chap 17(Take home exam) • November 12 – Post Training Holiday – no class • Class 4: (Nov 19) Chap 5, Chap 7, Chap 9/12 • November 26 – Thanksgiving – No Class • Dec 3 – No Class • Class 5: (Dec 10) Chap 14; The Beer Game, Reverse Logistics – need “The Forklifts Have Nothing To Do!” Available in the Lewis and Clark Bookstore; Chap 4 • Other requirement: • →visit Harley-Davidson Plant in Kansas City to see operations management in practice and write a 3-5 page paper comparing the class slides and readings to the Harley operations

  3. Additional Text The #2 Selling Warehousing and Distribution Book and #1Non-text book Warehousing Book Book as of Apr 1, 2009

  4. Grades • Homework – 20% • Mid Term – 35% • Final Exam – 40% • Harley Paper – 5%

  5. Contact Information • joewalden@supplychainresearch.com • (760) 447-3651 • Personal background

  6. Class Slides and Information • www.supplychainresearch.com • Slides will be posted/updated week prior to class – therefore the slides currently on the website may change as new materials come available

  7. Chapter 1 Introduction to Operations Management

  8. The Operations Function • Operations as a transformation process • Operations as a basic function • Operations as the technical core

  9. INPUT Material Machines Labor Management Capital Operations as a Transformation Process

  10. INPUT Material Machines Labor Management Capital TRANSFORMATION PROCESS Operations as a Transformation Process

  11. INPUT Material Machines Labor Management Capital OUTPUT Goods Services TRANSFORMATION PROCESS Operations as a Transformation Process

  12. INPUT Material Machines Labor Management Capital OUTPUT Goods Services TRANSFORMATION PROCESS Feedback Operations as a Transformation Process

  13. Transformation Processes • Physical(manufacturing) • Locational(transportation/ warehouse) • Exchange(retail) • Physiological(health care) • Psychological(entertainment) • Informational(communications)

  14. Impacts on Operations Management • Industrial Revolution • Scientific Management • Human Relations or the lack thereof • Advent of Management Science • Quality Emphasis • Globalization of Supply Chains • Information Age/Internet Revolution

  15. Key Events Industrial Revolution Steam engine 1769 James Watt Division of labor 1776 Adam Smith Interchangeable parts 1790 Eli Whitney Scientific Management Principles Frederick W. Taylor 1911 Activity scheduling chart Henry Gantt 1912 Moving assembly line Henry Ford 1913

  16. Key Events Human Relations Hawthorne studies 1930 Elton Mayo Motivation theories 1940s Abraham Maslow 1950s Frederick Hertzberg 1960s Douglas McGregor Management Science Linear programming 1947 George Dantzig Digital computer 1951 Remington Rand Simulation, PERT/CPM, 1950s Operations research Waiting line theory groups MRP 1960s Joseph Orlicky, IBM

  17. Key Events Quality Emphasis JIT 1970s TaiichiOhno, Toyota TQM 1980s W. Edwards Deming, Joseph Juran, et. al. Strategy and operations Skinner, Hayes Reengineering 1990s Hammer, Champy World Trade Organization 1990s Numerous countries and companies Globalization European Union and 1970s IBM and others other trade agreements EDI, EFT, CIM 1980s

  18. Key Events Information Age/ Internet Revolution Internet, WWW, ERP 1990s Supply chain SAP, i2 management, Technologies, ORACLE, E-commerce PeopleSoft, Amazon, Yahoo, eBay, and others

  19. Business Consumer B2C Amazon.com B2B Commerceone.com Business C2C eBay.com C2B Priceline.com Consumer Categories of E-Commerce

  20. Buyers Buyer Seller Sellers Buyers Sellers Sellers Buyer Types of B2B Transactions (a) Electronic Storefront (b) Seller’s Auction (c) Buyer’s Auction (d) Exchange or E-Marketplace

  21. E-Business Promotes: • Better customer relations • More efficient processes • Lower cost of materials • Information technology synergy • Better and faster decision making

  22. E-Business Promotes: • New forms of organizations • Expanded supply chain • Higher customer expectations • New ways of doing business • Globalization

  23. World Trade Compared to World GDP Source: “Real GDP and Trade Growth of OECD Countries, 2001–03,” International Trade Statistics 2003, World Trade Organization, www.wto.org Globalization and Competitiveness • Favorable cost • Access to international markets • Response to changes in demand • Reliable sources of supply • 14 major trade agreements in 1990s • Peak: 26% in 2000 Copyright, 2006, John Wiley and Sons

  24. Hourly Wage Rates for Selected Countries Source: “International Comparisons of Hourly Compensation Costs for Production Workers in Manufacturing,” Bureau of Labor Statistics, U.S. Department of Labor, Updated September 30, 2003. Globalization and Competitiveness (cont.) Germany: $26.18 USA: $21.33 Taiwan: $5.41 Mexico: $2.38 China: $0.50 Copyright, 2006, John Wiley and Sons

  25. Country Foreign Sales Company of Origin as % of Total Nestlé Switzerland 98.2 Nokia Finland 97.6 Philips Netherlands 94.0 Bayer Germany 89.8 ABB Germany 87.2 SAP Germany 80.0 Exxon Mobil United States 79.6 Royal Dutch/Shell Netherlands 73.3 IBM United States 62.7 McDonald’s United States 61.5 Multinational Corporations

  26. Competitiveness The degree to which a nation can produce goods and services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens.

  27. Output Input Productivity = Productivity

  28. Output Input Productivity = Productivity • Become more efficient • Downsize • Expand • Retrench • Achieve breakthroughs Productivity improves when firms:

  29. Changes in Productivity for Select Countries Internet-enabled productivity - Dot com bust - 9/11 terrorist attacks Source: “International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends, 2002,” Bureau of Labor Statistics, U.S. Department of Labor, September 2003. U.S. figures for 2002–2003 from “Major Sector Productivity and Costs Index,” Bureau of Labor Statistics, U.S. Department of Labor, March 2004 Copyright, 2006, John Wiley and Sons

  30. Measures of Competitiveness • Productivity • GDP (Gross domestic product) growth • Market capitalization • Technological infrastructure • Quality of education • Efficiency of government

  31. Barriers to Entry • Economies of scale • Capital investment • Access to supply and distribution channels • Learning curves

  32. Competition Within Industries Increases When • Firms are relatively equal in size and resources • Products and services are standardized • Industry growth is slow or exponential

  33. Chapter 2 Operations Strategy To Accompany Russell and Taylor, Operations Management, 4th Edition,  2003 Prentice-Hall, Inc. All rights reserved.

  34. The Importance of Clearly Stated Missions/Visions ‘The Grand Duke said “one who is confused in purpose cannot respond to his enemy” Sun Tzu, The Art of War (III.23) • To know the purpose – there must be a clearly stated mission and vision.

  35. Clearly Stated Mission??? “When you come to a fork in the road, take it.”

  36. Example of A Clearly Understood Mission COL Rusling on General Grant: “He made certain his subordinates knew exactly what he wanted, and why and when he wanted it.”

  37. Example of A Clearly Understood Mission “We endeavor to go to the moon and return safely before the end of this decade.” - John F. Kennedy

  38. VISION® • Vital to the Organization • Integrated throughout the Organization • Sustainable and Achievable • Important from the viewpoint of the employees • Organization Goals • Not necessarily a one size fits all vision Velocity Management in Logistics and Distribution, 2005, Walden

  39. Strategy Formulation • Define a primary task • Assess core competencies • Determine order winners & order qualifiers • Positioning the firm

  40. Core Competencies • Also known as core capabilities • Skills that differentiate the service or manufacturing firm from competitors • Those things that the company does best

  41. Strategy Formulation • Define a primary task • Assess core competencies • Determine order winners & order qualifiers • Positioning the firm

  42. Competing on Cost • Eliminate all waste • Invest in • Updated facilities & equipment • Streamlining operations • Training & development

  43. Competitive Priorities: Cost • Southwest Airlines • one type of airplane facilitates crew changes, record-keeping, maintenance, and inventory costs • direct flights mean no baggage transfers • $30 million annual savings in travel agent commissions by requiring customers to contact the airline directly Copyright, 2006, John Wiley and Sons

  44. Competing on Quality • Please the customer • Understand customer attitudes toward and expectations of quality Example: Ritz Carlton

  45. Competing on Flexibility • Produce wide variety of products • Introduce new products • Modify existing products quickly • Respond to customer needs

  46. Competing on Speed • Fast moves • Fast adaptations • Tight linkages Example: FEDEX, UPS, DHL

  47. Competitive Priorities: Speed • Citicorp • advertises a 15-minute mortgage approval • L.L. Bean • ships orders the day they are received • Wal-Mart • replenishes its stock twice a week • General Electric • reduces time to manufacture circuit-breaker boxes into three days and dishwashers into 18 hours • Motorola • needs less than 30 minutes to build to order pagers Copyright, 2006, John Wiley and Sons

  48. Operations Role in Corporate Strategy • Provide support for overall strategy of a firm • Serve as firm’s distinctive competence • Must be consistent • Must be consistent with overall strategy

  49. Operations and Wall Street • Comparing operations at a firm with competitors • Example income per employee revenue per employee inventory turnover customer turnover

  50. Wal-Mart Provide value for our customers Mission Low prices, everyday Competitive Priority Operations Strategy Low inventory levels Short flow times Operations Structure Linked communications between stores Fast transportation system Enabling Process and Technologies EDI/satellites Cross-docking Focused locations OperationsStrategy at Wal-Mart

More Related