Production and Operations Management: Manufacturing and Services

1. Production and Operations Management: Manufacturing and Services

Production
and Operations
Management:
Eighth Edition
Manufacturing and
Services
PowerPoint Presentation for Chapter 1
Introduction to the Field
Chase
Aquilano
Jacobs
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2. Chapter 1 Introduction to the Field

◆Why
Study Operations Management?
◆Definition of Operations Management
◆Operations Decision Making
◆Managing Transformations
◆Service or Good?
◆Closed vs. Open System Perspectives
◆Development of OM as a Field
◆Current Issues
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3. Why Study Operations Management?

Systematic Approach
to Org. Processes
Business Education
Operations
Management
Career Opportunities
Cross-Functional
Applications
3
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4. Operations Management Definition

Operations management may be defined as the
design, operation, and improvement of the
production system that creates the firm’s primary
products and services.
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5. Operations Decision Making

Marketplace
Corporate Strategy
Finance Strategy
Operations Strategy
Marketing Strategy
Operations Management
People
Materials &
Customers
Input
Plants
Parts
Processes
Products &
Services
Planning and Control
Output
Production System
5
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6. OM Involves Managing Transformations

Input
Transformation
Process
Output
(Value Adding)
Transformation is
enabled by The 5 Ps of OM:
◆People
◆Plants
◆Parts
◆Processes
◆Planning
and Control
6
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7. Transformations

◆Physical--manufacturing
◆Locational--transportation
◆Exchange--retailing
◆Storage--warehousing
◆Physiological--health
care
◆Informational--telecommunications
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8. Service or Good?

◆“If
you drop it on your foot, it won’t hurt you.”
(Good or service?)
◆“Services
never include goods and goods never
include services.” (True or false?)
8
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9. What about McDonald’s?

◆Service
or Manufacturing?
◆The
company certainly manufactures tangible
products
◆Why
then would we consider McDonald’s a
service business?
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10. Front and Back Office

Back Office
Service Provider
Front Office
Customer
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11. Core “Factory Services”

◆Quality
◆Flexibility
◆Speed
◆Price
(or production cost)
11
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12. Value-Added Factory Services

◆Information
◆Problem
Solving
◆Sales
Support
◆Field
Support
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13. Development of OM as a Field

Scientific
Management
Computers
(MRP)
TQM & Quality
Certification
Moving Assembly
Line
JIT/TQC &
Automation
Business Process
Reengineering
Hawthorne
Studies
Manufacturing
Strategy
Electronic
Enterprise
Operations
Research
Service Quality
and Productivity
Global Supply
Chain Mgmt.
Historical
Underpinnings
OM's Emergence
as a Field
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14. Current Issues

◆Speeding
up the time it takes to get new products
into production.
◆Developing
flexible production systems to enable
mass customization of products and services.
◆Managing
global production networks.
◆Developing
and integrating new production
technologies into existing production systems.
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15. Current Issues

◆Achieving
high quality quickly and keeping it up
in the face of restructuring.
◆Managing
a diverse workforce.
◆Conforming
to environmental constraints, ethical
standards, and government regulations.
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16. Text Layout

Product & Process
Selection (Ch. 4)
Quality Management
& Control (Ch. 6, 6S)
Service Design &
Management (Ch. 5)
Product Design &
Process Selection
Capacity Management (Ch. 7)
JIT Systems (Ch. 8)
Goals & Strategy (Ch. 2)
Birth of the System
Design of the System
Facility Location (Ch. 9)
Layout (Ch. 10)
Project Management (Ch. 3)
Revising the System
Managing Growth &
Change Over Time
(Chs. 18-20)
Managing the Supply
Chain
Job Design
& Measurement (Ch. 11)
Supply Chain
Management (Ch. 12)
Planning, Scheduling &
Inventory Management. (Chs. 14-17)
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