om ch 1 - heizer 2015
TRANSCRIPT
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Operations andProductivity
PowerPoint presentation to accompany
Heizer and Render
Operations Management
PowerPoint slides by Jeff Heyl
11
2014 Pearson Education, Inc.
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Learning Objectives
Wen you complete tis capteryou sould be able to!
"# $efineoperations management%# &'plainthe distinction between
goods and services
(# &'plainthe difference betweenproduction and productivit
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Learning Objectives
Wen you complete tis capteryou sould be able to!
)# *omputesing"e-factor productivit+# *omputemu"tifactor productivit
,# -dentifythe critica" variab"es in
enhancing productivit
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Operations Management at
Hard Roc. *afe
#irst opened in 1$%1 &ow ' 1(0 restaurants in over (! countries
)oc* music memorabi"ia
+reates va"ue in the form of good food andentertainment
!,(00custom mea"s per da in r"ando
ow does an item get on the menu/
)o"e of the perations anager 2014 Pearson Education, Inc.
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Wat -s Operations
Management/
Productionis the creation of
goods and servicesOperations management 0OM1 is
the set of activities that create
va"ue in the form of goods andservices b transforming inputsinto outputs
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Organizing to Produce
2oods and 3ervices Essentia" functions
"# Mar.eting' generates demand%# Production4operations' creates
the product
(# 5inance4accounting' trac*s howwe"" the organi3ation is doing, pasbi""s, co""ects the mone
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Organizational *arts
5igure "#"
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Organizational *arts
5igure "#"
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Organizational *arts
5igure "#"
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6e 3upply *ain
5 g"oba" networ* of organi3ations andactivities that supp" a firm with goods andservices
embers of the supp" chain co""aborate toachieve high "eve"s of customer satisfaction,efficienc and competitive advantage.
5igure "#%
#armer 6rup 7ott"er 8istributor )etai"er producer
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Wy 3tudy OM/
1. is one of three ma9or functions of anorgani3ation, we want to stud how peop"eorgani3e themse"ves for productiveenterprise
2. :e want ;and need< to *now how goodsand services are produced
!. :e want to understand what operationsmanagers do
4. is such a cost" part of anorgani3ation
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Wat Operations
Managers $o7asic Management 5unctions
P"anningrgani3ing6taffing
=eading+ontro""ing
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6en 3trategic $ecisions
TABLE 1.2DECISION CHAPTER(S)
1. Design of goods and servies !" S#$$%e&en' !
2. anaging #a%i'* +" S#$$%e&en' +
,. Proess and a$ai'* design -" S#$$%e&en' -
. Loa'ion s'ra'eg* /
!. La*o#' s'ra'eg* 0
+. H#&an reso#res and o design 13
-. S#$$%*45ain &anage&en' 11" S#$$%e&en'
11/. Inven'or* &anage&en' 12" 1" 1+
0. S5ed#%ing 1," 1!
13. ain'enane 1-
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6e 3trategic $ecisions
"# $esign of goods and services
8efines what is re>uired of operations
Product design determines >ua"it,sustainabi"it and human resources
%# Managing 8uality
8etermine the customer?s >ua"it
e@pectations Estab"ish po"icies and procedures to
identif and achieve that >ua"it
6able "#%0cont#1
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6e 3trategic $ecisions
(# Process and capacity design
ow is a good or service produced/
+ommits management to specifictechno"og, >ua"it, resources, andinvestment.
)# Location strategy
&earness to customers, supp"iers, andta"ent.
+onsidering costs, infrastructure, "ogistics,and government. 6able "#%0cont#1
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6e 3trategic $ecisions
+# Layout strategy
Integrate capacit needs, personne" "eve"s,techno"og, and inventor
8etermine the efficient f"ow of materia"s,peop"e, and information.
,# Human resources and job design
)ecruit, motivate, and retain personne" withthe re>uired ta"ent and s*i""s.
Integra" and e@pensive part of the tota"sstem design.
6able "#% 0cont#1
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6e 3trategic $ecisions
9# 3upply:cain management
Integrate supp" chain into the firm?s strateg.
8etermine what is to be purchased, from
whom, and under what conditions.;# -nventory management
Inventor ordering and ho"ding decisions.
ptimi3e considering customer satisfaction,supp"ier capabi"it, and production schedu"es.
6able "#%0cont#1
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6e 3trategic $ecisions
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Were are te OM Jobs/
Bechno"ogCmethods #aci"itiesCspace uti"i3ation
6trategic issues
)esponse time
Peop"eCteam deve"opment
+ustomer service
Dua"it
+ost reduction
Inventor reduction
Productivit improvement
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Opportunities6ig#re 1.,
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*ertifications
5PI+6, the 5ssociation for perationsanagement
5merican 6ociet for Dua"it ;56D#3# ?griculture@ Manufacturing@
and 3ervice &mployment5igure "#+100 '
0 '
0 '
40 '
20 '
0 'Percentof:or*force
10012(
1(01%(
1$001$2(
1$(01$%(
2000202( ;est.uiring signatureson credit card purchasesunder G2(
6aved secondsper transaction
+hange the si3e of the icescoop
6aved 14 secondsper drin*
&ew espresso machines 6aved 12 seconds
per shot
perations improvements havehe"ped 6tarbuc*s increase ear"revenue per out"et b G2(0,000 toG1,000,000 in seven ears.
Productivit has improved b 2%J, orabout 4.(J per ear.
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easure of process improvement
)epresents output re"ative to input
n" through productivit increasescan our standard of "iving improve
Productivity
Productivit KAnits produced
Input used
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Productivity *alculations
Productivit KAnits produced
=abor-hours used
4unitsC"abor-hour1,000
2(0
Labor Productivity
One resource inputsin'le)factor productivity
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Multi:5actor Productivity
utput
=abor ateria" Energ +apita" isce""aneous
Productivit K
5"so *nown as tota" factor productivit
utput and inputs are often e@pressed indo""ars
*ultiple resource inputsmulti)factor productivity
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Measurement Problems
"# Cualityma change whi"e the>uantit of inputs and outputsremains constant
%# &'ternal elements ma cause anincrease or decrease in productivit
(# Precise units of measure ma be"ac*ing
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Productivity Dariables
"# Labor- contributesabout 10J of theannua" increase
%# *apital- contributesabout !J of theannua" increase
(# Management-contributes about (2Jof the annua" increase
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Eey Dariables for -mproved
Labor Productivity1. 7asic education appropriate for the
"abor force
2. 8iet of the "abor force!. 6ocia" overhead that ma*es "abor
avai"ab"e
+ha""enge is in maintaining and enhancings*i""s in the midst of rapid" changingtechno"og and *now"edge
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Labor 3.ills
?bout alf of te "9:year:olds in te >#3# cannotcorrectly answer 8uestions of tis type
5igure "#9
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*apital
"=
;
,
)
%
=
Perc
entincrease
inp
roductivity
Percentage investment
"= "+ %= %+ (= (+
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Management
Ensures "abor and capita" are effective"used to increase productivit
Ase of *now"edge
5pp"ication of techno"ogies
Lnow"edge societies
8ifficu"t cha""enge
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Productivity and te
3ervice 3ector1. Bpica"" "abor intensive
2. #re>uent" focused on uni>ue individua"
attributes or desires!. ften an inte""ectua" tas* performed b
professiona"s
4. ften difficu"t to mechani3e and automate(. ften difficu"t to eva"uate for >ua"it
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&tics@ 3ocial Responsibility@
and 3ustainability
*allenges facing
operations managers! 8eve"op and produce safe, high->ua"it
green products
Brain, retrain, and motivate emp"oeesin a safe wor*p"ace
onor sta*eho"der commitments