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Lecture Business: A changing world - Chapter 9: Production and operations management

After reading this chapter, you will be able to: Define operations management and differentiate between operations and manufacturing; explain how operations management differs in manufacturing and service firms; describe the elements involved in planning and designing an operations system; specify some techniques managers may use to manage the logistics of transforming inputs into finished products; assess the importance of quality in operations management; evaluate a business's dilemma and propose a solution. | Chapter Nine Production and Operations Management Operations Management The development and administration of the activities involved in transforming resources into goods and services. 9-1 The Transformation Process 9-2 Customer Control standards (Feedback) Inputs land labor capital raw materials time information energy Transformation or Conversion procedures equipment facilities technology knowledge Outputs goods services ideas Inputs, Outputs, and Transformation Processes in the Manufacture of Oak Furniture 9-3 Inputs oak trees labour information/ knowledge stain or varnish router/saw warehouse space/time Transformation cutting or sawing routing measuring assembling staining/varnishing storing Outputs oak furniture Operations in Service Businesses Service providers use human and mechanical processes to provide products that are intangible. The transformation process requires inputs such as employees, equipment and supplies. Outputs provide a benefit from a performance, event or type | Chapter Nine Production and Operations Management Operations Management The development and administration of the activities involved in transforming resources into goods and services. 9-1 The Transformation Process 9-2 Customer Control standards (Feedback) Inputs land labor capital raw materials time information energy Transformation or Conversion procedures equipment facilities technology knowledge Outputs goods services ideas Inputs, Outputs, and Transformation Processes in the Manufacture of Oak Furniture 9-3 Inputs oak trees labour information/ knowledge stain or varnish router/saw warehouse space/time Transformation cutting or sawing routing measuring assembling staining/varnishing storing Outputs oak furniture Operations in Service Businesses Service providers use human and mechanical processes to provide products that are intangible. The transformation process requires inputs such as employees, equipment and supplies. Outputs provide a benefit from a performance, event or type of involvement with the service provider. 9-4 Differences between Manufacturers and Service Providers Nature and consumption of output Uniformity of inputs Uniformity of outputs Labour required Measurement of productivity 9-5 Steps in Planning and Designing Operations Systems 1. Planning the product 2. Designing the operations process a. standardization b. modular design c. customization 3. Planning capacity 9-6a Steps in Planning and Designing Operations Systems 4. Planning facilities a. facility location b. facility layout 1. fixed position layout 2. process layout 3. product layout c. technology 1. CAD 2. CAM 3. flexible manufacturing 4. CIM 9-6b Facility Layouts Fixed-position layout All resources needed for a product are brought to a central location. Process layout Layout is organized into departments that group related processes. Product layout Production is broken down into relatively simple tasks assigned to workers positioned along a line. 9-7 Logistics .