Production and Operations Management Overview

1
Production and OperationsManagement Overview

• Operations Function
• Operations Objectives
• Operations Decisions
• World Class Principles
• Competitiveness

2
Operations Function

• The Operations function consists of all
  activities directly related to producing goods or
  providing services.

3
Operations Goals

• Productivity

• QualityCustomers Perception

4
Operations Decisions

• System Design
• capacity
• location
• arrangement of departments
• product and service planning
• acquisition and placement of equipment

5
More Operations Decisions

• System operation
• personnel
• inventory
• scheduling
• project management
• quality assurance

6
World Class Principles

• Continuous improvement (Kaizen)
• Recognize global competition
• Simultaneously pursue quality
  and efficiency
• Total quality management (TQM)
• Increased flexibility
• Variance Reduction
• Operation time reduction
• Lead time reduction

7
More World Class Principles

• Use advanced technology
• Involve workers in decision making and
  organization rewards
• Apply reengineering
• Recognize environmental issues
• Note the rapid growth of services

8
Competitiveness
Price
Flexibility
Quality
Differentiation
Time
9
Information TechnologyOverview

• Performance Criteria
• Scope
• New Technology Opportunities

10
Information Technology Performance Criteria

• Accuracy
• Timeliness
• Ease of Use
• Support of Decision Making
• Cost
• Scope of Coverage

11
Scope of Coverage

• Support all organizational functions
• Supporting organizations such as vendors through
  Electronic Data Interchange (EDI)

12
New Technology Opportunities

• Data Warehousing
• Data Mining
• Internet/World Wide Web
• Wireless Communication
• Paperless Office
• Electronic Data Interchange

13
Cyberspace Savings A World Wide Web Site Offers
These Savings
Paper Copying Phone Postage Advertising Time
Money