Unformatted text preview: MGMT 36100 Operations Management (OM)
Ch I: Introduction Course Objectives
To provide a working knowledge of the vocabulary of OM. To provide understanding of processes. What are the components of this process? How to calculate capacities, output, work-in-process inventories? work-inWhat are the major opportunities for improving the process? To familiarize with key issues (cost, quality, delivery, and flexibility) and problems (such as variability) facing an operations manager. To discuss management systems (planning, materials, quality, etc.) for managing business processes. We will consider a wide variety of topics starting with inventory models and quality control charts developed over 80 years ago to the more recent topics of 1980s and 1990s: total quality management (TQM), lean manufacturing, and supply chain management. ChI‐Introduction‐Sp10 1 ChI‐Introduction‐Sp10 2 MGMT 36100 MGMT 36100 Historical Perspective Business education and OM
1881: First business school – University of Pennsylvania. 1898: University of Chicago – College of Commerce and Politics. 1908: Harvard establishes a School of Business Administration. Operations Management: The management of systems or processes that create goods and/or provide services create
People, plant , equipment, money, raw Input material, components Add Value Operations Output Goods Services Production 1946: Harvard MBA (first year) – Finance, Marketing, Production
1958: School of Management at Purdue - Named Krannert in 1962. Management, …Analysis of cases added in 1949.
Inventory / quality / monitoring Control Production 1963 - Harvard MBA (first year) – Finance, Marketing, Production Management, Management Simulation (Forerunner of Business Games). 1980: Gradual change in name from Production Production Management to Operations Management (OM)
ChI‐Introduction‐Sp10 3 Process Schematic
Includes customer feedback ChI‐Introduction‐Sp10 4 MGMT 36100 MGMT 36100 Examples Decision making levels: Strategic, Tactical, Operational Strategic, Tactical,
Inputs Wood, cushions, nails, varnish, sand paper, cutting / drilling tools Labor …. Doctors, nurses Hospital Staff Medical supplies Equipment Labs Processing Cutting, joining, sanding, polishing, packing, labeling, etc. Output Finished chair Dinning chair Time Horizon OM functions Process design Level of detail Strategic Capacity planning
Treated patients Hospital Examination Surgery Monitoring Medication Therapy Aggregate planning Tactical Master production schedule Material Requirement Planning Order scheduling Operational ChI‐Introduction‐Sp10 5 ChI‐Introduction‐Sp10 6 MGMT 36100 MGMT 36100 ChI-Introduction-Sp10 1 What will be covered?
Selected chapters from books by Stevenson and Chase, Jacobs, Aquilano. I II II III IV V VI VII VIII Introduction Process Analysis Analysis Process Selection & Facilities Design Aggregate Planning Quality Management Inventory Management MRP Lean Production
ChI‐Introduction‐Sp10 Three Basic Functions Organization
Control Quality Inventory Part 1 Chapters I, II, III, IV Finance Operations OM includes Marketing Decision Levels Process Design Aggregate Planning MRP Forecasting Capacity planning Scheduling Managing inventories Assuring quality Motivating & training Locating facilities …… Part 2 Ch. V, VI Part 3 Ch. VII, VIII
7 Process Design / Management / Improvement Industrial Engineering
ChI‐Introduction‐Sp10 8 MGMT 36100 MGMT 36100 Overlap between OM and other functions
Accounting Inventory Management, Capacity utilization, Labor standards Make or Buy, Relocation and Plant Expansion Customer Due Date, New Product Introduction, Product Customization Standards and Incentive Plans, Job Design Operations Information System Evolution of Operations Management
• Industrial revolution (1770’s) • Scientific management (1911) –Mass production –Interchangeable parts –Division of labor relations movement (1920 • Human relations movement (1920-60) • Decision models (1915, 1960-70’s) 1960• Influence of Japanese manufacturers Business Week:
Great Great Innovators 2004 • Alfred Sloan • Hewlett & Packard • Billy Durant • Kiichiro and Eiji Toyoda • Thomas J. Watson (Jr.) Kroc • Ray Kroc • Sam Walton • Soichiro Honda • Deming and Juran • Steve Jobs • Michael Dell • Larry Page & Sergey Brin Finance Marketing Human Resources M.I.S. ChI‐Introduction‐Sp10 9 ChI‐Introduction‐Sp10 10 MGMT 36100 MGMT 36100 GoodsGoods-service Continuum
Production of goods – tangible output Delivery of services – an act
Goods Service Surgery, teaching Song writing, software development Computer repair, restaurant meal Automobile Repair, fast food Home remodeling, retail sales Automobile assembly, steel making
ChI‐Introduction‐Sp10 11 Supply Chain Management Supply chain: A sequence of sequence activities and organizations involved in producing and delivering goods / services. Supplier’s suppliers Direct Direct suppliers Producer Final Final Consumer Distributor ChI‐Introduction‐Sp10 12 MGMT 36100 MGMT 36100 ChI-Introduction-Sp10 2 Why study OM?
• • • • Presents interesting career opportunities. Concepts and tools are widely used in managing other functions. Provides a systematic way of looking at organizational process. Business education is incomplete without an understanding of approaches to managing operations. Who Who uses OM?
Practically everyone: Manufacturing, education, banking, agriculture, insurance, communications, Government, military, ….. Fortune 500: top 10 2009
1. Royal Dutch Shell 1. Exxon Mobil 2. Exxon Mobil 3. Wal-Mart Stores Wal4. BP 5. Chevron 6. Total 7. ConocoPhillips 8. ING Group 9. Sinopec 10. Toyota Motor 2. Wal-Mart Stores Wal3. Chevron 4. ConocoPhillips 5. General Electric 6. General Motors 7. Ford Motor 8. AT&T 9. Hewlett-Packard Hewlett10. Valero Energy Job titles
Operations / purchase / quality / production / distribution / supply chain manager. Scheduling coordinator / hospital administrator. Production / quality analyst
ChI‐Introduction‐Sp10 13 ChI‐Introduction‐Sp10 14 MGMT 36100 MGMT 36100 Important points
Read today’s handout carefully and bring it to class every day. Instructor’s Background
Education: Degrees Degrees in Mechanical, Electrical, Industrial Engineering Experience: – Worked in a factory (spark plugs): 2 years – Teaching: Texas Tech: 12+, Wichita State: 1, SDSMT: 1, U. Michigan: 1, Purdue: SDSMT: 1, U. Michigan: 1, Purdue: 9+ – Training & consulting organization: 3 years. – Independent consultant: 12 years. – Worked on more than 15 projects (ISO 9000, software implementation). – Published over 30 papers.
15 ChI‐Introduction‐Sp10 MGMT 562 MGMT 36100 16 Turn off cell phones. No talking to your neighbor. Use same seat. neighbor. If you want to solve crossword puzzle or SUDOKU, hide it carefully. carefully. No e-mail for appointments or grade related questions or absence from class. Customer complaints notebook. Don’t send an e-mail about homework (unless you find an error). eAddress mail w ith Dear Mr (or Dr or Prof Panwalkar Address e-mail with Dear Mr. (or Dr. or Prof.) Panwalkar. At the end of the e-mail: last name, first name, class time Two absences will be accepted. Separate attendance for April 14, 21 and 26. Form HW groups quickly. Some individual assignments may be given. given. Tests : Open-book, open-notes. OpenopenTake notes while watching video tapes / clips.
ChI‐Introduction‐Sp10 MGMT 36100 Shrikant S. Panwalkar [email protected] Office: KCTR 218 Tel: 494 4460 Teaching times (T) Office hours (O) 1 - 3 Tuesday 09000900-0930 09300930-1000 10001000-1030 10301030-1100 11001100-1130 11301130-1200 12001200-1230 12301230-1300 1300-1330 13301330-1400 14001400-1430 14301430-1500 15001500-1530 15301530-1600 16001600-1630 16301630-1700 Mon Tues Wed Thurs Fri T T T T T T T T T T T T T T T T T T T T August 20, 2009 Undergraduate Business 1 U. Penn 2 MIT 2 U. C. Berkeley 4 U. of Michigan 5 New York University 6 UNC (Chapel Hill) UNC (Chapel Hill) Top OM Programs 01: MIT 02: U. of Michigan 03: Carnegie Mellon 04: Purdue 05: U. Penn 06: Ohio State 06: Ohio State 06: 06: U. C. Berkeley 08: U. Texas (Austin) 09: Indiana U. 10: UNC (Chapel Hill) Purdue Purdue rank: 21
ChI‐Introduction‐Sp10 18 T T T O O O O T T T 6 U. Texas (Austin) 6 U. Virginia 9 Carnegie Mellon 10 Cornell, U.S.C. ChI-Introduction-Sp10
MGMT 562 MGMT 36100 MGMT 36100 ChI-Introduction-Sp10 3 ...
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