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19 - C H A P T E R N I N E T E E N Operations and Value...

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C H A P T E R N I N E T E E N Operations and  Value Chain  Management 19 Chapter Outline Introduction What Is Operations Management, and Why Is  It Important? Services and Manufacturing Managing Productivity Strategic Role of Operations Management Value Chain Management What Is Value Chain Management? Goal of Value Chain Management Requirements for Value Chain  Management Coordination and Collaboration Technology Investment Organizational Processes Leadership Employees/Human Resources Organizational Culture and Attitudes Benefits of Value Chain Management Obstacles to Value Chain Management Organizational Barriers Cultural Attitudes Required Capabilities People Current Issues in Operations Management Technology’s Role in Manufacturing Quality Initiatives Planning for Quality Organizing and Leading for Quality Controlling for Quality Quality Goals ISO 9000 Six Sigma Summary Mass Customization T he whole area of operations management is going through many significant changes and transformations. The Montreal based Bombardier, Inc. bought OMC in 2001. OMC had poor production and quality and had lost significant market share. Roch Lambert, a manufacturing executive with Bombardier, put together a team to reorganize manufacturing for the OMC division. They set a challenging goal to produce the highest quality Evinrude and Johnson engines ever made. The team recommended that all manufacturing be located in one location. This consolidation reduced transit time. All other manufacturing processes were reorganized. Finally, employees were carefully selected for their problem-solving skills and their team orientation. Roch wants to ensure that quality drives all aspects of the business. What can he do to successfully impalement a quality program? In this chapter, we’ll discuss operations and value chain management and explain what’s taking place in this area and why it’s necessary. 12
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Many PowerPoint Slides, including both original text art and newly created images, have been developed and are available for you to coordinate with Chapter 19 materials presentation. ANNOTATED OUTLINE 1. INTRODUCTION. Understanding the operations side of an organization is important for comprehending how efficiency, productivity, value chain management, e- manufacturing, and controls contribute to that organization’s success. 2. WHAT IS OPERATIONS MANAGEMENT, AND WHY IS IT IMPORTANT? A. Operations management is defined as the design, operation, and control of the transformation process that converts resources into finished goods and services. Exhibit 19.1 illustrates a simplified operations system. Q & A 19.1 What’s the transformation process in a service business like a dry cleaners or a  VCR-repair shop?
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