OM note card - NOTES OM is the design operation improvement...

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NOTES : OM is the design, operation, improvement of the systems that create and deliver the firm’s primary products and services. POM =Production(manufacturing)+Operating Management(Services) Plan and Execute. Steam Engine started the industrial revolution created by James Watt. Business strives for freedom. INPUT PROCESS OUTPUT. Process is an activity/task done routinely. The father of productivity is Fred Taylor. Total Productivity = output/total input. Partial productivity = output/ labor or capital, … Multi-factor productivity = output/ (labor & capital) or (…&…). Total productivity ↓, labor productivity ↑, capital productivity ↓, material productivity ↔. Self-investing company should think about investing for the future. % change of productivity = (new productivity-old productivity)/old productivity x 100 or ((New-Old)-1)x 100. The base is always the old data. (Rev- Exp = Net Profit). Revenue ↑ or expense ↓ = net profit ↑. DESIGN FOR PRODUCTION OF GOOD/SERVICES. 1. Design for customers→ survey → Quality function development, match customers wants w/ our capabilities. Tool: house of quality. 2. Financing for production→ Time value of money. 3. Analysis of process used→ process mapping (graphical model of a process) →flow charts→ ▼buffer, storage; □ process/activity; ◊ decision point. If you can’t satisfy a customers needs, not your type of business. Ex: ▼raw materials→ □ mix→ □ proof→ □ bake→ ▼WIP→ □ pack→ ▼Finished goods. The slowest process time is the “bottle neck”. Cycle time = time b/w the completion of 2 finished products. Throughput time = time it takes from start to finish. Just because you know the cycle time, doesn’t mean you know the throughput time. Utilization = (actual time used/ time made available). Time made available is people x the cycle time? To increase productivity increase bottleneck time. More idle time = higher cost of product. BRP → business processing reengineering→ a)parallel processing b)steps reduction c) speed up process d) variation elimination/uncertainty. Manufacturing Process Design and
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