In this chapter, the following content will be discussed: Supply chain strategies, suppliers, vertical integration, managing supply chain, issues in integrated supply chain, opportunities in integrated supply chain, keiretsu networks, E-Procurement, distribution, managing supply chain performance. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 16 1 CHAPTER : PRODUCTION OPERATIONS MANAGEMENT 2 What Is Production Operations Management? Production is the creation of goods and services Operations management (OM) is the set of activities that create value in the form of goods and services by transforming inputs into outputs 3 The Critical Decisions Design of goods and services What good or service should we offer? How should we design these products and services? Managing quality How do we define quality? Who is responsible for quality? 4 The Critical Decisions (Contd.) Process and capacity design What process and what capacity will these products require? What equipment and technology is necessary for these processes? Location strategy Where should we put the facility? On what criteria should we base the location decision? 5 The Critical Decisions (Contd.) Layout strategy How should we arrange the facility? How large must the facility be to meet our plan? Human | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 16 1 CHAPTER : PRODUCTION OPERATIONS MANAGEMENT 2 What Is Production Operations Management? Production is the creation of goods and services Operations management (OM) is the set of activities that create value in the form of goods and services by transforming inputs into outputs 3 The Critical Decisions Design of goods and services What good or service should we offer? How should we design these products and services? Managing quality How do we define quality? Who is responsible for quality? 4 The Critical Decisions (Contd.) Process and capacity design What process and what capacity will these products require? What equipment and technology is necessary for these processes? Location strategy Where should we put the facility? On what criteria should we base the location decision? 5 The Critical Decisions (Contd.) Layout strategy How should we arrange the facility? How large must the facility be to meet our plan? Human resources and job design How do we provide a reasonable work environment? How much can we expect our employees to produce? 6 The Critical Decisions (Contd.) Supply-chain management Should we make or buy this component? Who should be our suppliers and how can we integrate them into our strategy? Inventory, material requirements planning, and JIT How much inventory of each item should we have? When do we re-order? 7 The Critical Decisions (Contd.) Intermediate and short–term scheduling Are we better off keeping people on the payroll during slowdowns? Which jobs do we perform next? Maintenance How do we build reliability into our processes? Who is responsible for maintenance? 8 Characteristics of Goods Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction 9 Characteristics of Service Intangible product Produced and consumed at same time Often unique High customer interaction Inconsistent product definition .
