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Production and Operations Management: Manufacturing and Services
1. Production and Operations Management: Manufacturing and Services
Productionand Operations
Management:
Eighth Edition
Manufacturing and
Services
PowerPoint Presentation for Chapter 1
Introduction to the Field
Chase
Aquilano
Jacobs
Irwin/McGraw-Hill
©
The McGraw-Hill Companies, Inc.,
2. Chapter 1 Introduction to the Field
◆WhyStudy Operations Management?
◆Definition of Operations Management
◆Operations Decision Making
◆Managing Transformations
◆Service or Good?
◆Closed vs. Open System Perspectives
◆Development of OM as a Field
◆Current Issues
2
Irwin/McGraw-Hill
©
The McGraw-Hill Companies, Inc.,
3. Why Study Operations Management?
Systematic Approachto Org. Processes
Business Education
Operations
Management
Career Opportunities
Cross-Functional
Applications
3
Irwin/McGraw-Hill
©
The McGraw-Hill Companies, Inc.,
4. Operations Management Definition
Operations management may be defined as thedesign, operation, and improvement of the
production system that creates the firm’s primary
products and services.
4
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©
The McGraw-Hill Companies, Inc.,
5. Operations Decision Making
MarketplaceCorporate Strategy
Finance Strategy
Operations Strategy
Marketing Strategy
Operations Management
People
Materials &
Customers
Input
Plants
Parts
Processes
Products &
Services
Planning and Control
Output
Production System
5
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©
The McGraw-Hill Companies, Inc.,
6. OM Involves Managing Transformations
InputTransformation
Process
Output
(Value Adding)
Transformation is
enabled by The 5 Ps of OM:
◆People
◆Plants
◆Parts
◆Processes
◆Planning
and Control
6
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©
The McGraw-Hill Companies, Inc.,
7. Transformations
◆Physical--manufacturing◆Locational--transportation
◆Exchange--retailing
◆Storage--warehousing
◆Physiological--health
care
◆Informational--telecommunications
7
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8. Service or Good?
◆“Ifyou drop it on your foot, it won’t hurt you.”
(Good or service?)
◆“Services
never include goods and goods never
include services.” (True or false?)
8
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©
The McGraw-Hill Companies, Inc.,
9. What about McDonald’s?
◆Serviceor Manufacturing?
◆The
company certainly manufactures tangible
products
◆Why
then would we consider McDonald’s a
service business?
9
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The McGraw-Hill Companies, Inc.,
10. Front and Back Office
Back OfficeService Provider
Front Office
Customer
10
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©
The McGraw-Hill Companies, Inc.,
11. Core “Factory Services”
◆Quality◆Flexibility
◆Speed
◆Price
(or production cost)
11
Irwin/McGraw-Hill
©
The McGraw-Hill Companies, Inc.,
12. Value-Added Factory Services
◆Information◆Problem
Solving
◆Sales
Support
◆Field
Support
12
Irwin/McGraw-Hill
©
The McGraw-Hill Companies, Inc.,
13. Development of OM as a Field
ScientificManagement
Computers
(MRP)
TQM & Quality
Certification
Moving Assembly
Line
JIT/TQC &
Automation
Business Process
Reengineering
Hawthorne
Studies
Manufacturing
Strategy
Electronic
Enterprise
Operations
Research
Service Quality
and Productivity
Global Supply
Chain Mgmt.
Historical
Underpinnings
OM's Emergence
as a Field
13
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©
The McGraw-Hill Companies, Inc.,
14. Current Issues
◆Speedingup the time it takes to get new products
into production.
◆Developing
flexible production systems to enable
mass customization of products and services.
◆Managing
global production networks.
◆Developing
and integrating new production
technologies into existing production systems.
14
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©
The McGraw-Hill Companies, Inc.,
15. Current Issues
◆Achievinghigh quality quickly and keeping it up
in the face of restructuring.
◆Managing
a diverse workforce.
◆Conforming
to environmental constraints, ethical
standards, and government regulations.
15
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©
The McGraw-Hill Companies, Inc.,
16. Text Layout
Product & ProcessSelection (Ch. 4)
Quality Management
& Control (Ch. 6, 6S)
Service Design &
Management (Ch. 5)
Product Design &
Process Selection
Capacity Management (Ch. 7)
JIT Systems (Ch. 8)
Goals & Strategy (Ch. 2)
Birth of the System
Design of the System
Facility Location (Ch. 9)
Layout (Ch. 10)
Project Management (Ch. 3)
Revising the System
Managing Growth &
Change Over Time
(Chs. 18-20)
Managing the Supply
Chain
Job Design
& Measurement (Ch. 11)
Supply Chain
Management (Ch. 12)
Planning, Scheduling &
Inventory Management. (Chs. 14-17)
16
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©
The McGraw-Hill Companies, Inc.,