Managing Operations, Quality, and Productivity

1
Chapter 21

• Managing Operations, Quality, and Productivity

2
Operations Management

• The set of management activities used by an
  organization to transform resource inputs into
  products, services, or both.
• Efficient and effective operations
• Ensures competitiveness
• Facilitates organizational performance
• Maintains quality
• Maintains productivity

3
A View of the Transformation Process
Input Resources
4
Designing an Operations System

• Start with the Product-Service Mix, to
  determine how many and what kinds of products or
  services (or both) to offer.

5
Capacity Decision

• involves choosing the amount of products,
  services, or both that can be produced.
• What are the next determining factors?

6
Facilities Layouts

• Layout
• The physical configuration.
• Product layout
• Arranged around the product.
• Process layout
• Arranged around the process.
• Fixed position layout
• Arranged around a single work area.
• Cellular layout
• When families of products can flow similar paths.

7
Approaches to Facilities Layout
8
Organizational Technologies
Automation can be completely or almost completely
performed by machines
Computer-Assisted Manufacturing Relies on
computers to design or manufacture products
Robotics Artificial devise that can
perform functions
9
Supply Chain Management

• The process of managing operations control.
• Resource acquisition.
• Inventory.
• What does supply chain management improve?
• Overall efficiency and effectiveness.
• What does it include?

10
Procurement Management

• Purchasing management
• Buying the materials and resources required to
  produce products and services.
• What is a new approach to purchasing?
• Reducing the number of suppliers and negotiating
  special product-delivery arrangements.

11
Total Quality Management

• What is the meaning of quality?
• The totality of features and characteristics of a
  product or service that bear on its ability to
  satisfy stated or implied needs.
• What is needed for TQM?
• The cooperation of all levels within the
  organization.

12
TQM Tools and Techniques

• Value-added analysis - A comprehensive evaluation
  of
• All work activities.
• Materials flow.
• Paperwork to determine the value added for
  customers
• Benchmarking - The process of learning how other
  firms do things in an exceptionally high quality
  manner.

13
More TQM Techniques

• Speed
• The time needed to get something accomplished it
  can be emphasized in any area, including
  developing, making, and distributing products or
  services.
• ISO 9000
• A set of quality standards created by
  International Organization for Standards.
• SQC
• Statistical Quality Control, a set of specific
  statistical techniques used to monitor quality.

14
Productivity

• An economic measure of efficiency that summarizes
  what is produced relative to resources used to
  produce a product or service.
• Levels of productivity
• The units of analysis used to calculate or define
  productivity.
• Forms of productivity