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Production and Operations Management

Production and Operations Management . Jiaqin Yang Department of Management Georgia College & State University. Topic-1 Introduction to operations Management. Operations as a System. Production System. Conversion Subsystem. Inputs. Outputs. Control Subsystem.

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Production and Operations Management

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  1. Production and Operations Management Jiaqin Yang Department of Management Georgia College & State University

  2. Topic-1 Introduction to operations Management

  3. Operations as a System Production System Conversion Subsystem Inputs Outputs Control Subsystem

  4. Introduction to operations Management • Operations: All activities that involved in the Conversion Process of Input to Output (Goods/service) • Management: The Process of Planning, Organizing and Controlling in achieving the desired objectives. • University as an Example:

  5. Introduction to Operations Management

  6. Functions • Accounting • Distribution • Engineering • Operations • Finance • Human resources • Marketing Types of Organizations Bank Construction Government Health care Manufacturing Retailing Transportation Wholesaling • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- • ----------------- Operations Management as a Function

  7. Functions of Operations Management • Relationship between Operations and Other Functions: Three Primary Functions in Business: • Broader Perspective of Operations Management: An Integrated Production System Including: Inventory Control / Aggregate Planning / Demand Forecasting

  8. Functions of Operations Management Scheduling / Capacity Planning / Purchasing / Quality Control / Facility Location & Layout / Production and Process Design / Job Design / Maintenance / Project Management / …… • Operations Manager’s Responsibility: (typically) ——— 75% of the Firm’s Investment ———80% of the Firm’s Personnel ———85% of Firm’s Expenditures for Materials

  9. Entry-Level Jobs in OM • Purchasing planner/buyer • Production (or operations) supervisor • Production (or operations) scheduler/controller • Production (or operations) analyst • Inventory analyst • Quality specialist

  10. Manufacturing vs Service • Manufacturing: Provide Tangible Goods (Cars / TV Sets / Foods /…… • Service: Provide Intangible (Goods) (Education / Banking / Legal/Repairing / Medical Service / Transportations/…… • Four Major Differences between Manufacturing and Service: ，

  11. Manufacturing vs Service Most Principles and Techniques for Manufacturing can also be applied to Service Operations.

  12. A Classification Scheme For Service Organizations • The Classification scheme is based upon the extent of customer contact in the creation of the service. • Customer Contact---The physical presence of the customer in the system. The extent of contact is the presence time of the customer must be in the system relative to the total time required to service the customer. • Creation of the service---The work process that is involved in providing the service.

  13. A Classification Scheme For Service Organizations • High customer contact service system--- More difficult to control, customer can affect the time if demand, exact nature of service quality of service. More uncertainty, customer can disrupt service planning. Capacity unlikely to equal demand at any given time. Balance of work more difficult, must staff for demand close to peak rather than average. Skills of employees must include significant public relations component. • Low customer contact service system--- Easier to control. Customer usually has little impact on the system during the production process. Can more easily match capacity with demand.

  14. Operations Approaches to Improving Service Design 1.Substitute Technology for personnel • Automatic Banking Tellers • Scanners at Grocery and Department stores • Long Distance Direct Dialing • Vending Machines • Automatic Car Wash • Computerized Legal Research System

  15. Operations Approaches to Improving Service Design 2. Increasing Customer Involved in Production of Service: • Self Service Department Store • Customer Reading of Utility meters • Mail Order Shopping • Customer Fills out Order Blank at Discount Store • U-Frame-It Picture Frame Shops • ……….

  16. Operations Approaches to Improving Service Design General System Approach in Service Operations • Color Coding of Food Wrappers at Fast Food Restaurants • Drive-In Claims Service in Insurance-Use of Rate Books • Computerized Allocation of Police to Patrol Routes

  17. Classification of Operations • 1.Based on Demand Pattern: a) Make-to-Order (e.g. Airplane / Film Developing/……) Assembly-to-Order (e.g. Car/ Fast food/……) b) Make-to-Stock (e.g. Clothes/ Toys/……) Assembly-to-Stock (e.g. Electronic Products/ TV Sets/……)

  18. Classification of Operations • 2.Based on Type of Conversion Process:

  19. Major Characteristics of Operations Process

  20. Trends Impacting Operations Management

  21. Today's Factors Affecting OM • Global Competition • Quality, Customer Service, and Cost Challenges • Rapid Expansion of Advanced Technologies • Continued Growth of the Service Sector • Scarcity of Operations Resources • Social-Responsibility Issues

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