Modern Management, 10e Certo

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Objectives

• 1. Definitions of production, productivity, and
  quality
• 2. An understanding of the importance of
  operations and production strategies, systems,
  and processes
• 3. Insights into the role of operations
  management concepts in the workplace
• 4. An understanding of how operations control
  procedures can be used to control production
• 5. Insights into operations control tools and how
  they evolve into a continual improvement approach
  to production management and control

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Production

• Defining Production
• Productivity
• Productivity Outputs / Inputs
• Traditional strategies for increasing
  productivity by improving
• 1. Effectiveness of the organizational workforce
  through training
• 2. Production process through automation
• 3. Product design to make products easier to
  assemble
• 4. Production facility by purchasing more modern
  equipment
• 5. Quality of workers hired to fill open positions

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Production

• Quality and Productivity
• Focus on Continual Improvement
• Focus on Quality and Integrated Operations
• Quality Assurance
• Statistical Quality Control
• No Rejects Philosophy
• Quality Circles
• Automation
• Strategies, Systems, and Processes

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Production
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Production
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Operations Management

• Defining Operations Management
• Performance of managerial activities entailed in
• Selecting
• Designing
• Operating
• Controlling
• Updating production systems

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Operations Management
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Operations Management

• Operations Management Considerations
• Involves managers
• Takes place within the context of objectives and
  policies
• Standards for effectiveness and efficiency

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Operations Management

• Operations Management Considerations (continued)
• Capacity Strategy
• Five Steps in Capacity Decisions
• 1. Measure the capacity of currently available
  facilities
• 2. Estimate future capacity needs on the basis of
  demand forecasts
• 3. Compare future capacity needs and available
  capacity
• 4. Identify ways to accommodate long-range
  capacity changes
• 5. Select best alternative based on quantitative
  and qualitative evaluation

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Operations Management

• Operations Management Considerations (continued)
• Location Strategy
• Factors in a Good Location
• Nearness to market and distribution centers
• Nearness to vendors and resources
• Requirements of federal, state, and local
  governments
• The character of direct competition
• The degree of interaction with the rest of the
  corporation
• The quality and quantity of labor pools
• The environmental attractiveness of the area
• Taxes and financing requirements
• Existing and potential transportation
• The quality of utilities and services

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Operations Management

• Operations Management Considerations (continued)
• Product Strategy
• Process Strategy
• Types of Processes
• 1) Continuous process
• 2) Repetitive process
• 3) Job-shop process
• Layout Strategy
• 1. Product layout
• 2. Process (functional) layout
• 3. Fixed-position layout

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Operations Management
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Operations Management

• Operations Management Considerations (continued)
• Human Resources Strategy
• Human resource imperatives
• 1. Optimize individual, group, and organizational
  effectiveness
• 2. Enhance the quality of organizational life
• Operational Tools in Human Resources Strategy
• Manpower planning
• Job design
• Work methods analysis
• Motion-study techniques
• Work measurement methods

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Operations Control

• Just-in-Time Inventory Control
• Just-in-time (JIT)
• Best Conditions for JIT
• Advantages of JIT
• Characteristics of JIT
• 1. Closeness of suppliers
• 2. High quality of materials purchased from
  suppliers
• 3. Well-organized receiving and handling of
  materials purchased
• 4. Strong management commitment

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Operations Control

• Maintenance Control
• Pure-preventive maintenance policy
• Pure-breakdown (repair) policy
• Cost Control
• Stages in Cost Control
• 1. Establishing standard or planned cost amounts
• 2. Measuring actual costs incurred
• 3. Comparing planned costs to incurred costs
• 4. Making changes to reduce actual costs to
  planned costs

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Operations Control

• Budgetary Control
• Potential Pitfalls of Budgets
• 1. Placing too much emphasis on relatively
  insignificant expenses
• 2. Increasing budgeted expenses without adequate
  information
• 3. Ignoring the fact that budgets must be changed
  periodically
• Human Relations Considerations in Using Budgets
• Reducing Human Relations Problems

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Operations Control

• Ratio Analysis
• 1. Liquidity ratios
• 2. Leverage ratios
• 3. Activity ratios
• 4. Profitability ratios
• Using Ratios to Control Organizations
• Evaluate all ratios simultaneously
• Compare computed values with industry averages
• Incorporate trend analysis
• Materials Control
• Procurement of Materials
• Receiving, Shipping, and Trafficking
• Inventory and Shop-Floor Control

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Operations Control
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Selected Operations Control Tools

• Using Control Tools to Control Organizations
• Inspection
• To Inspect or Not to Inspect
• Management by Exception
• Establishing Rules
• Management by Objectives

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Selected Operations Control Tools

• Break-Even Analysis
• Basic Ingredients of Break-Even Analysis
• 1. Fixed costs
• 2. Variable costs
• 3. Total costs
• 4. Total revenue
• 5. Profits
• 6. Loss
• 7. Break-even point

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Selected Operations Control Tools

• Break-Even Analysis (continued)
• Types of Break-Even Analysis
• Algebraic Break-Even Analysis
• BE FC / ( P - VC )
• Graphic Break-Even Analysis
• Advantages of Using the Algebraic and Graphic
  Break-Even Methods
• Control and Break-Even Analysis

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Selected Operations Control Tools
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Selected Operations Control Tools
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Selected Operations Control Tools

• Other Broad Operations Control Tools
• Decision Tree Analysis
• Process Control
• Value Analysis
• Computer-Aided Design
• Computer-Aided Manufacturing

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