MGMT 361 - MGMT 361 Operations Management (OM) Instructor:...

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Unformatted text preview: MGMT 361 Operations Management (OM) Instructor: Jen-Yi (Jay) Chen Jen- Ch I: Introduction Based on: Ch. 1 from Stevenson 1 2 Operations Management: The management of systems or processes that create goods and/or provide services create People, plant / equipment, money, raw material, components Examples Inputs Processing Cleaning Making cans Cutting Cooking Packing Labeling Examination Surgery Monitoring Medication Therapy Output Canned vegetables Raw vegetables Food Processing Metal sheets Goods / services Output Water / energy Labor Building Equipment Input Add Value Operations Hospital Doctors, nurses nurses Hospital Staff Medical supplies Equipment Labs Treated patients patients Inventory / quality / monitoring Control Process Schematic Includes customer feedback 3 4 Decision making levels: Strategic, Tactical, Operational Strategic, Tactical, Time Horizon OM functions Process design Strategic Capacity planning Aggregate planning planning Tactical Master production schedule Level of detail What will be covered? Selected chapters from books by Stevenson and Chase, Jacobs, Aquilano. I II II III IV Introduction Process Analysis Analysis Process Selection & Facilities Design Aggregate Planning Quality Management Inventory Management MRP Lean Production Part 2 Ch. V, VI Part 3 Ch. VII, VIII 6 Part 1 Chapters I, II, III, IV Material Requirement Planning Operational Order scheduling 5 V VI VII VIII We will reverse the order in part 2: ChI-Introduction-S08 1 Three Basic Functions Organization Finance Operations OM includes Forecasting Capacity planning Scheduling Managing inventories Assuring quality Motivating & training Locating facilities …… Comparison with stock market reaction to other corporate events (on announcement) Operational events Marketing events 1.0% 1.4% 0.7% 1.0% -1.8% -0.7% -7.0% 1.0% 10.5% 3.3% -1.7% Change in firm name Brand leveraging Celebrity endorsement New product introduction Affirmative action awards Delay introduction of new introduction of products 0.7% 0.3% 0.2% 0.7% 1.6% -5.3% Increase in capital expenditure Increase in R&D expenditure Effective TQM implementation Internal corporate restructuring Decrease in capital expenditure Plant closing closing Supply Chain Disruptions IT Investments B2C e-commerce B2B e-commerce IT problems Marketing Information technology events Financial events Stock splits 3.3% Open market share repurchase 3.5% Proxy contest 4.2% Increasing financial leverage 7.6% Decreasing financial leverage -5.4% Seasoned equity offerings -3.0% 8 Process Design / Management / Improvement 7 Originally presented by: Hendricks, K. and Singhal, V.R. “Supply Chain Disruptions and Shareholder Value.” January 2005 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 GoodsGoods-Service Continuum Goods Service Surgery, teaching Finance Song writing, software development Computer repair, restaurant meal Marketing Automobile Repair, fast food Home remodeling, retail sales Human Resources Automobile assembly, steel making M.I.S. Production of goods - tangible output Delivery of services - an act (intangible) 9 10 Key differences: Goods vs. Service No. Characteristic Goods Service Supply Chain Management High Low High Low Intangible Difficult Low Little Difficult Not usual Final Final Consumer Distributor Supplier’s suppliers Direct Direct suppliers Producer 1 2 3 4 5 6 7 8 9 10 Customer contact Uniformity of input Labor content of jobs Uniformity of output Output Measurement of productivity of productivity Quality assurance Amount of inventory Evaluation of work Ability to patent design Low High Low High Tangible Easy High Much Easier Usually Supply chain: A sequence of activities and organizations involved in producing and delivering goods / services. 11 12 ChI-Introduction-S08 2 ...
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