OPERATIONS MANAGEMENT (Chapter 1 and class discussion)

1
OPERATIONS MANAGEMENT(Chapter 1 and class
discussion)

• Operations
• Functional area like marketing or finance
• It is considered a line function
• Includes manufacturing and services
• Management
• Planning, organizing, directing/leading and
• control
• Thus, OM P,O,D/L,C of Operations

2
OPERATIONS MANAGEMENTOperations and
Productivity (Chapter 1)

• What is OM ? Pg 4
• Operations
• Manufacturing as well as services
• Functional area. Examples p.5
• Management Pg 6
• Setting objectives
• Planning, Organizing, Directing/Leading, Control
  of operations (Functions of Management)
• Resources, Efficiency and Effectiveness
• Strategic, tactical and operational plans
• Role of Forecasting
• Management decision making scientific methods,
  behavioral issues, management science optimal
  solutions heuristic rules.

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Operations and Productivity (Chapter 1)

• Recent trends 12
• The service sector growth 9-
• Service Management as a field
• Differences between goods and services OM
• Customer perception of quality
• Contact employee importance
• Quality and productivity 13-
• Supply chain partnerships
• Continuous improvement
• Global competition and outsourcing
• Diversity in workforce and customer base
• Ethics, SR and environmental concerns 18-

4
Operations and Productivity (Chapter 1)

• Productivity 13
• Measurement 14 single and multi factor
• Ethics and social responsibility 18
• Globalizing operations 28 (from chapter 2)
• Reasons 28 cultural and ethical issues 31
  options 43
• Quality Basics of TQM
• System design Basics of JIT
• Supply chain partnerships Basics of SCM
• (TQM, JIT and SCM are discussed later in separate
  chapters)

5
DECISION MAKING IN OM

• Environment analysis. SWOT
• Corporate level strategy decisions
• Mission and strategy 31-
• Business level strategy (also called competitive
  priorities) decisions
• Functional level strategy decisions Operations
  Strategy
• Actual operations decisions

6
Operations StrategyChapter 2

• Competitive advantage through operations pg. 33-
• Low cost, differentiation, response
• Compare these with competitive priorities
  discussed in class. i.e., cost/price, quality,
  availability and flexibility
• See Figure 2.4 p. 36
• Make a complete list of competitive strategies
  (competitive priorities)

7
Strategic Decisions of OM(Operations Strategy)
Pg. 39

• See the complete list (10) of strategic OM
  decision. 36
• Product design, process selection, capacity,
  quality, location and layout, HR/job design, SC
  strategies, inventory, scheduling-maintenance
  decisions
• Special note on quality, inventory, scheduling
  and maintenance in the above list

8
PRODUCT AND SERVICE DESIGNChapter 5

• Importance of generating new products p.158-
• Product life cycle 159
• Percentage of sales from new products in leading
  firms 162
• Product development cycle. P. 163
• Information for product/service design
• QFD p. 163-
• Manufacturability 166
• Modular design 167 Teams/Concurrent Engineering
  163-
• More techniques/tools
• CAD/CAM 167- Value analysis 169 environmental
  concerns 169 time to market 172-
• Assembly drawings, Assembly charts 176-

9
SERVICE DESIGNPg 178-

• Customer satisfaction with services
• Expectations and perceptions The gap model
• Variables in service design
• Product/service balance
• Contact level/worker-equipment combination
• Customer interaction and participation 269
• Customization level
• Technology
• Employee selection
• Service standards

10
PROCESS STRATEGYChapter 7

• The aim is to select a process strategy/type
• Process strategies/types p. 256-
• Process focus repetitive product focus mass
  customization
• Process strategy fit with volume and variety p.
  256-
• Comparison of characteristics of process types p.
  262-
• Process design analysis tools 265-
• Process mapping process charts

11
PROCESS STRATEGY

• Some production technologies 271-
• Computerized machines (CNC) 272- Robots
• AIS/RFID 272-
• Materials handling ASRS, AGV 273-
• FMS CIM 274-
• Importance of continuous process improvement 198-
• Process re-design 276-
• Benchmarking p. 200
• Process improvement approaches 198-
• PDCA, Six Sigma
• Process analysis and improvement tools 203-
• Involvement of customers, employees and suppliers
  199-

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QUALITY STRATEGYPlanning QualityChapter 6

• Planning quality of products and services
• Quality as a strategy Chapter 2
• Why improve quality ? p. 194-
• Cost of Quality p. 196
• What is quality ?
• Products. Garvins classification
• Services. Dimensions of service quality 204

13
QUALITY STRATEGY

• Total Quality Management 198-
• Deming, Juran and Crosby 196-
• Leadership and strategic planning
• Employee involvement empowerment 199
• Customer focus
• Supplier relations (details in chapter 11)
• Continuous improvement 198-
• Benchmarking 200 Tools 203-
• Malcolm Baldrige National Quality Award 195
• ISO 9000 standards 197

14
Statistical Quality ControlSupplement 6

• Acceptance sampling 237-
• Sampling plans
• AQL, LTPD, Type I and II errors
• AOQ
• Statistical Process Control (SPC) 222-
• Natural and assignable variations 223-
• Use of control charts
• Control charts for attributes 230-
• Control charts for variables 214-
• Process capability 235-

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CAPACITY PLANNINGSupplement 7

• How capacity is measured. p. 286
• Design and effective capacity p. 287
• Capacity utilization efficiency
• Capacity planning over ST/MT/LT p. 286
• Factors affecting capacity
• Demand and demand management 289
• Productivity, Quality, Location, Layout,
  Scheduling
• External factors

16
CAPACITY PLANNINGSupplement 7

• Capacity planning options - short term
• Capacity planning options - medium term
• Capacity expansion for long term needs
• Timing decisions 290
• Scale decisions
• Economies and diseconomies of scale 288
• Techniques
• Breakeven analysis decision trees financial
  analysis 291-

17
Facility LocationChapter 8

• Nature and Importance of location decisions 312
• Factors affecting location decisions. 313-
• Locating facilities globally
• Methods of evaluating location alternatives
• Factor rating method 317
• Location breakeven method 318
• Center of gravity method 319
• Location of services 322

18
Facilities LayoutChapter 9

• Nature and importance of the problem 342
• Types of layouts 342
• Process (oriented) layouts 349-
• Information needed evaluating alternatives
  computer programs for evaluation
• Variations offices, stores
• Product (oriented) layouts assembly lines 358-
• Cycle time output no. of workers idle time
  efficiency

19
Human Resources PlanningChapter 10

• Importance of long term HR planning principles
• HR planning as an integral part of strategic
  planning
• Quality and productivity
• Traditional HRM activities
• Hiring, training, evaluation, compensation
• Modern HRM issues
• Job design 386- motivation 386 employee
  involvement, participation, teams 389,
  empowerment
• Establishing work standards
• Supplement 10
• d

20
SUPPLY CHAIN MANAGEMENTChapter 11

• What is a supply chain? What is SCM? 432
• Strategic importance of the supply chain 432-
• SC decisions and business strategy
• SC costs as a percentage of sales
• The outsourcing v. vertical integration decision
  434-
• Supplier management. Basic principle 446-
• Selection 446 many or few suppliers? 438
• Orientation/mutual agreement on goals/development
  
• Evaluation and rating
• Incentives
• Participation

21
SUPPLY CHAIN MANAGEMENTChapter 11

• Integration of the supply chain 441
• What is integration ? Advantages.
• Efficient v responsive supply chains
• Technology of integration
• RFID 442
• E-commerce Supplement 11
• Distribution/Logistics management 448-

22
Inventory ManagementChapter 12

• Inventory management is an integral part of SCM
• Functions of inventory 476 Types 476-
• Inventory classification ABC classification 477
• Uses of ABC classification Inventory review
  cycle counting 479
• The simple (EOQ) inventory model for uniform
  demand 482
• Reorder point model when there is a lead time 486
• Other variations simultaneous production
  quantity discounts backorders
• Inventory model for non uniform (probabilistic)
  demand 482- Safety stock

23
AGGREGATE PLANNINGChapter 13

• Aggregate planning is medium term prod planning
  p. 518-
• Relationship to other plans 519
• Aggregate planning strategies 520
• Chase, level and mixed strategies 523- adv. And
  disadv.
• Methods for selecting a plan 524-
• Aggregate capacity planning in services 530-
• Managing demand and supply
• Yield management 532-

24
MRP and ERPChapter 14

• The master production schedule p. 552
• MRP Process
• Bill of materials 555
• Inventory records 556
• Lead times 557
• Purchase orders outstanding 556
• Lot sizing 563
• Integrating Capacity planning. MRP II 567-
• ERP systems 570

25
SHORT TERM SCHEDULING Chapter 15

• Examples 590
• Scheduling criteria 593
• completion/flow time, waiting time, makespan,
  utilization
• Sequencing jobs in work centers
• Priority rules FCFS, SPT, EDD, LPT, Slack 599
• Critical ratio 602
• Scheduling with one machine/resource 600
• Scheduling with two machines 603
• Multiple machine situations
• d

26
JIT and LEAN PRODUCTION SYSTEMS Chapter 16

• JIT philosophy
• Waste reduction. Variability reduction 628
• Pull v. Push production systems 628
• Partnerships with suppliers 629
• JIT and operations
• Quality 641
• Layout 632
• Inventory 633
• Scheduling 637
• Work force 641
• What is lean production ? 641