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MKT B370 Operations Management

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Operations Management Group 2 Tutorial 1 ... Going to a fancy restaurant? B370 Operations Management Historical Development of OM Principles of Scientific Management. – PowerPoint PPT presentation

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Title: MKT B370 Operations Management


1
MKT B370 Operations Management
  • Group 2
  • Tutorial 1
  • C.S. Lai
  • April 2013

2
Your choice of language English or Cantonese
3
Welcome! todays agenda
  • Introduction to the course 15 mins.
  • Ground rules, QA 15 mins.
  • Introduction to the subject 60 mins.
  • Production System
  • Goods vs. Services
  • Operation Strategy
  • TMAs 15 mins.
  • QA, Your Suggestions 15 mins.

4
About me
  • BSc in Chemistry (CUHK)
  • MSc in Engineering Business Management (Warwick)
  • Global API Sourcing - multinational
    pharmaceutical company
  • Please dont call me Lai Sir, call me CS or Mr.
    Lai
  • To contact me
  • Tel 9262 2636 (Sun2000 2200)
  • Please allow your callers ID to be displaced
  • Please leave a message in case the line is busy.
  • Please DONT call during office hours (Mon.
    Fri.).
  • Please DONT call after 2200, I should have
    slept already!
  • Email t441653_at_ouhk.edu.hk

5
About your Course Coordinator
  • Dr. Matthew Yeung
  • Tel 2768 6951
  • Office A826
  • Email myeung_at_ouhk.edu.hk

6
My role as tutor
  • Help everyone of you to complete this course
  • Telephone tutoring, face-to-face sessions, TMAs,
  • OUHK expects me to be a manager (of students
    time), a well informed and sensitive counsellor
    and an effective administrator and NOT to
    transmit knowledge to your students
  • Lecturing for more than one third of the
    tutorial time should be considered too much

7
Please.
  • Speak out
  • Ask questions
  • Share your thoughts
  • Make mistakesand
  • Enjoy!

8
One last thing
  • Please ensure your phone doesnt ring during the
    tutorial
  • If you need to use your phone, please use the
    area outside the classroom
  • Thanks!

9
Activity
  • What is Operations Management? Please find some
    examples that is within the scope of Operations
    Management.
  • Why do you study this course?
  • How can this course help you in your career?

10
What is Operations Management?
  • Operations management (OM) is defined as the
    design, operation, and improvement of the systems
    that create and deliver the firms primary
    products and services.

11
What is OM?
Design (unit 1 Nature and context of OM,
Strategy) (unit 2 Project Management
Operation and improvement Unit 3 Quality Unit 4
Product design and process selection Unit 5
Capacity, Location Unit 6 Job Design
Supply Chain Unit 7 Managing Supply and
Demand Unit 8 Inventory Management Unit 9
Scheduling
Unit 10 - Reengineering
12
Why Study Operations Management?
13
What is a Production System?Defined
  • A production system is defined as a user of
    resources to transform inputs into some desired
    outputs.

14
Transformations
  • Physical--manufacturing
  • Locational--transportation
  • Exchange--retailing
  • Storage--warehousing
  • Physiological--health care
  • Informational--telecommunications

15
Activity
  • Primary Inputs
  • Resources
  • Primary Transformation Functions
  • Typical Desired Output
  • Please use the following examples, describe the
    Input-Transformation-Output Relationship
  • McDonald (A service manufacturing organization)
  • OUHK (A service organization)

16
What is a Service and What is a Goods? Please
discuss
  • If you drop it on your foot, it wont hurt you.
    (Good or service?)
  • Services never include goods and goods never
    include services. (True or false?)

17
Characteristics of Services
  • Customer participation
  • Simultaneous production and consumption
  • Time-perishable capacity
  • Site dictated by location of customers
  • Labour intensiveness
  • Intangibility
  • Difficulty in measuring output

18
Core services are basic things that customers
want from products they purchase.
Core Services Definition
19
Core Services Performance Objectives
20
Value-added services differentiate the
organization from competitors and build
relationships that bind customers to the firm in
a positive way.
Value-Added ServicesDefined
21
Value-Added Service Categories
22
Examples Core Service vs. Value Added Service
  • What would you expect if you
  • Purchase a new ballpen?
  • Purchase a new TV?
  • Going to a fast-food restaurant?
  • Going to a fancy restaurant?

23
Historical Development of OM
  • Principles of Scientific Management. (1910s)
  • MRPII (1970s)
  • JIT and TQC. (1980s)
  • Manufacturing Strategy Paradigm. (1980s)
  • Service Quality and Productivity. (1970s)

24
Historical Development of OM (contd)
  • Total Quality Management and Quality
    Certification.
  • Business Process Reengineering. (1990s)
  • Supply Chain Management. (1990s)
  • Electronic Commerce. (2000s)

25
Operations Strategy
Strategy Process
Example
Customer Needs
More Product
Corporate Strategy
Increase Org. Size
Operations Strategy
Increase Production Capacity
Decisions on Processes and Infrastructure
Build New Factory
26
Competitive Dimensions
  • Cost
  • Product Quality and Reliability
  • Delivery Speed
  • Delivery Reliability
  • Coping with Changes in Demand
  • Flexibility and New Product Introduction Speed
  • Other Product-Specific Criteria

27
Dealing with Trade-offs
For example, if we reduce costs by reducing
product quality inspections, we might reduce
product quality.
For example, if we improve customer service
problem solving by cross-training personnel to
deal with a wider-range of problems, they may
become less efficient at dealing with commonly
occurring problems.
28
Order Qualifiers and Winners
  • Order qualifiers?
  • They are the basic criteria that permit the firms
    products to be considered as candidates for
    purchase by customers.
  • Order winners?
  • They are the criteria that differentiates the
    products and services of one firm from another.

29
Service Breakthroughs
  • A brand name car can be an order qualifier
  • Repair services can be order winners
  • Examples Warranty, Roadside Assistance,
    Leases, etc.

30
Imagine you run an airline in HK or elsewhere.
Identify your order winners and qualifiers
31
Operations Strategy Framework
32
Steps in Developing a Manufacturing Strategy
  • 1. Segment the market according to the product
    group.
  • 2. Identify product requirements, demand
    patterns, and profit margins of each group.
  • 3. Determine order qualifiers and winners for
    each group.
  • 4. Convert order winners into specific
    performance requirements.

33
What is Productivity?Defined
  • Productivity is a common measure on how well
    resources are being used. In the broadest sense,
    it can be defined as the following ratio
  • Outputs
  • Inputs

34
Total Measure Productivity
  • Total Measure Productivity Outputs
  • Inputs

or
Goods and services produced
All resources used
35
Partial Measure Productivity
  • Partial measures of productivity
  • Output or Output or Output or Output
  • Labor Capital Materials
    Energy

36
Multifactor Measure Productivity
  • Multifactor measures of productivity
  • Output
    .
  • Labor Capital
    Energy
  • or
  • Output
    .
  • Labor Capital
    Materials

37
Example of Productivity Measurement
  • You have just determined that your service
    employees have used a total of 2400 hours of
    labor this week to process 560 insurance forms.
    Last week the same crew used only 2000 hours of
    labor to process 480 forms.
  • Which productivity measure should be used?
  • Answer Could be classified as a Total Measure or
    Partial Measure.
  • Is productivity increasing or decreasing?
  • Answer Last weeks productivity 480/2000
    0.24, and this weeks productivity is 560/2400
    0.23. So, productivity is decreasing slightly.

38
Current Issues in OM
  • Effectively consolidating the operations
    resulting from mergers.
  • Developing flexible supply chains to enable mass
    customization of products and services.
  • Managing global supplier, production and
    distribution networks.

39
Current Issues in OM (contd)
  • Increased commoditization of suppliers.
  • Achieving the Service Factory.
  • Achieving good service from service firms.

40
About submitting TMA
  • By Post or by Online Submission.
  • Send your TMA well before the due dates.
  • You should submit each assignment by the cut-off
    date. Late submissions cannot be accepted.
  • If you send by post, enclose the TMA form,
    acknowledge card with stamp
  • Put down my CORRECT address
  • DONT use registered mail. I NORMALLY IGNORE
    REGISTERED MAIL!

41
TMAs
  • Keep a copy of each assignment
  • TMA should arrive MY MAILBOX on / before the due
    date
  • 7 days extensions will NOT normally be granted,
    unless you have GOOD reasons and with prior
    permission. (Do you know the official procedure
    of requesting extension?)
  • OUHK does not accept postal loss as a reason for
    extension

42
Reminders
  • TMA 1 due on June 11, 2013.
  • Next meeting May 12, 2013 _at_ OUHK
  • Project Management

43
Enjoy the courseandGood LuckSee you next
time
To download this presentationhttp//alumni.cuhk
.edu.hk/cslai
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