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Lecture Supply chain management: A global perspective – Chapter 5: Operations management

Chapter 5 - Operations management. The main contents of the chapter consist of the following: What is operations management? product design, process design, facility layout, line balancing in product layouts, process automation. | Chapter 5 Operations Management 5-1 Lecture Outline 5-2 What is Operations Management? Product Design Process Design Facility Layout Line Balancing in Product Layouts Process Automation Copyright 2011 John Wiley & Sons, Inc. What is Operations Management? 5-3 Operations management (OM) is the business function responsible for producing a company’s goods and services in an efficient and cost-effective way Transformation Role OM converts inputs into finished goods and services Copyright 2011 John Wiley & Sons, Inc. 5-4 Copyright 2011 John Wiley & Sons, Inc. OM Decisions Product Design designing unique product features Process Design creating the production process Quality Management establishing and implementing quality standards 5-5 Copyright 2011 John Wiley & Sons, Inc. OM Decisions Continued Inventory Management amounts of inventory to carry and when to order Facility Layout physical layout of the production facility Facility Location best location for facilities Scheduling schedules | Chapter 5 Operations Management 5-1 Lecture Outline 5-2 What is Operations Management? Product Design Process Design Facility Layout Line Balancing in Product Layouts Process Automation Copyright 2011 John Wiley & Sons, Inc. What is Operations Management? 5-3 Operations management (OM) is the business function responsible for producing a company’s goods and services in an efficient and cost-effective way Transformation Role OM converts inputs into finished goods and services Copyright 2011 John Wiley & Sons, Inc. 5-4 Copyright 2011 John Wiley & Sons, Inc. OM Decisions Product Design designing unique product features Process Design creating the production process Quality Management establishing and implementing quality standards 5-5 Copyright 2011 John Wiley & Sons, Inc. OM Decisions Continued Inventory Management amounts of inventory to carry and when to order Facility Layout physical layout of the production facility Facility Location best location for facilities Scheduling schedules for workers, machines, and facilities 5-6 Copyright 2011 John Wiley & Sons, Inc. Manufacturing vs. Service Operations Manufacturing Operations physical goods that can be stored most customers have no direct contact with the operation Service Operations intangible products that cannot be produced ahead of time customer present during creation of the service 5-7 Copyright 2011 John Wiley & Sons, Inc. Evolution of Operations 5-8 Copyright 2011 John Wiley & Sons, Inc. Operations has evolved from a strictly production function to having a strategic organizational role. Impact on the Organization Operations must work with other business functions such as: Marketing help operations understand what customers want must understand operations’ capabilities Sourcing help operations understand material availability must understand operational requirements 5-9 Copyright 2011 John Wiley & Sons, Inc. Impact on SCM Each company depends on other members of its supply chain Potential problems: upstream