21 Operations Management

21 Operations Management - ~ BCOR 1010 ~ Introduction to...

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Unformatted text preview: ~ BCOR 1010 ~ Introduction to Business Section 100 Instructor: Beth Cross Office: Room 345E – CESR Suite, Koelbel Email: beth.cross@colorado.edu Email: beth.cross@colorado.edu Cell #: 303 956-6010 Office # 303 492-4463 Office Hours, Spring, 2009: Office Mon. 11:30a-1:00p, Wed. 10:30a-12:00n Wed. and by appointment and 1 PART THREE: THE INTERRELATED PART FUNCTIONS OF BUSINESS FUNCTIONS A. Accounting B. Finance C. Marketing D. Information & Operations Management Management E. Management 2 Operations Management What is it, and why is it important? What do operations managers concern What themselves with? themselves Quality: A major focus today and a key Quality: measure of success measure Supply Chain Management 3 Operations Management Operations What is it? The development and administration of The the activities involved in transforming transforming resources into goods and/or services. resources goods and/or services. The “Core”… creation of the goods/services 4 The Transformation Process Operations Managers oversee the development and Operations administration of the activities involved in transforming transforming resources into goods and/or services. resources goods services. 5 Operations Management What do operations managers concern What themselves with? themselves What processes? What facilities? What product or service? -- location, layout, capacity? What technologies? How to optimize productivity, efficiency, reduce cost? How to control, improve quality? 6 ~ Production Line Example ~ 7 Why “Operations Management” ? Delivering services differs from manufacturing goods in Delivering services goods several ways… that matter to Operations. several How does making an oreo cookie differ from How making selling the cookie in a grocery store? selling How does building an airplane differ from building airplane delivering a travel experience on an airplane? delivering 8 Production Management Production Operations Management Operations Services Selling an Oreo – Delivering Services Delivering Travelling on an airplane – Goods Making an Oreo – Manufacturing Goods Manufacturing Manufacturing Goods Manufacturing Building an airplane – Delivering Services Delivering Tangible Uniform, efficient processes Uniform, Uniform output Mnfctrd before purchase Customer not involved “Low or No-touch” Output can be stored Easier to measure Easier Intangible Intangible Customized, less efficient pr. Specialized output Performed after purchase Customer participates “High-touch”… Output is perishable Output Harder to measure 9 Operations Management Why is it so important to get Why operations right? operations We need to regain competitive advantage We for the U.S. for New strategies are needed in a new New economic environment economic 10 10 Importance Of Quality Quality: A major focus today and a key measure of business success of What is product quality? The degree to which a good or service or idea meets the demands and requirements of customers. customers. Elimination of defects Elimination W. Edwards Deming Tools for quality management 11 11 Dr. W. Edwards Deming Father of the modern quality movement Strongly influenced Japanese industry after WWII Helped Toyota and other Japanese companies Helped develop management philosophy and practices that enabled them to become GLOBAL market leaders enabled Highest award for quality in Japan = “Deming Prize” 12 12 Dr. W. Edwards Deming “We have learned to live in a world of We mistakes and defective products as if they were necessary to life.” they 13 13 Deming’s 14 Points* 1. 2. 3. 3. 4. 5. 6. 6. 7. 7. 8. 9. 10. 11. 12. 13. 14. Create a constancy of purpose for improvement. Adopt the new philosophy of a new economic age, where quality is Adopt critical. Avoid massive inspection. Buy for quality along with price, not only for price. Continuously hunt for areas to be improved. Continuously Institute modern methods of training on the job. Institute Change methods of supervision to drive quality. Drive out fear. Break down barriers between departments. Eliminate numerical goals, posters, and slogans. Eliminate work standards that prescribe numerical quotas. Eliminate barriers to pride in workmanship. Institute a vigorous program of education and retraining. Put everyone to work bringing about this transformation. Put everyone Rosander, Deming’s 14 Points Applied to Service (New York: Marcel Dekker, Inc., 1991) Deming’s 14 14 Another Toy Recalled 15 15 “Don’t like CFLs? Ask your pet Don’t about them.” about Are they ready? Quality Specifications Safety Pet concerns 3/30/09 16 16 Quality Management Tools Quality Statistical Process Control (SPC) Six Sigma Process Reengineering - and “Lean” Benchmarking Getting Closer To the Customer ISO 9000 and other Industry Certifications T M Q 17 17 ~ Supply Chain Management ~ Supply Chain - the flow of information, Supply materials, and services that starts with materials, raw materials suppliers and continues through all stages of operations until the product or service reaches the customer. product 18 18 What is in the Supply Chain? A supply chain consists of all stages involved, directly or indirectly, in fulfilling customer requests The entire process from point of origin (raw materials) to point of consumption (final products bought by customers) A network (interdependent system) of facilities, including • materials supply from suppliers • transformation of materials to (inventories of) semi-finished and finished products • distribution of finished products to customers 19 19 Who is in the Supply Chain? Suppliers Raw materials manufacturers Intermediate product manufacturers End product manufacturers Distributors and Wholesalers and Distributors Retailers Retailers Customers Supplier Manufacturer Distributor Retailer Customer 20 20 A Typical Supply Chain Information Flow Supplier Manufacturer Distributor Retailer Customer Materials and Product Flow Value-Added Services $$$$$ Flow 21 21 Supply Chain Management (SCM) (SCM) Supply Chain Management - connecting Supply Management and integrating all parties in the chain to improve the flow “end-to-end” for the mutual improve benefit of all businesses in the chain and the customer. 22 22 From Boeing’s 787… 23 23 To a Winter Coat… 24 24 Operations Mgmt & Supply Chain Mgmt ~ Tightly Coupled ~ Tightly Purchasing and Procurement Production, Routing, Scheduling Inventory Management Distribution and Logistics Cost, Efficiency, Quality 25 25 ...
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