Ops management lecture 1 introduction
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Transcript of Ops management lecture 1 introduction
Operations management“TO FAIL TO PLAN IS TO PLAN TO FAIL”
Anonymous
Email: [email protected] Background BSc(Hons) Chemical Engineering Chartered/Professional Engineer MBA – Bristol Business School, UK Currently studying for a PhD in Entrepreneurship at Pretoria
University 25 years+ industry experience, specifically brewing , food &
packaging industry 12 years+ small business management experience, UK &
RSA:- setting up and running businesses
Jill Mitchell
Understand and identify the role of the operations function in manufacturing and service environments
Relate the role of the operations function to the contribution which operations bring to the competitiveness of the business
Identify the different stakeholders which any operation has to consider
Understand the effects of operations on business performance
Understand the basic operation systems within the manufacturing and services environments
Course aims
Understand the challenges within OPS MAN environment Understand the role and task of an OPS MAN in relation to that of their
functional peers Understand the scope, design and management of manufacturing and
service organisations Evaluate the elements and implementation of lean and efficient operations Evaluate and apply techniques and business processes of operational
planning and control systems Understand the difference in resource scheduling problems between
manufacturing and service environments Understand the fundamental differences between alternative ops man
approaches and their application Evaluate alternative operational planning and control approaches
Skills development
Two assignments
1 40% weighting due 24th April 2012
2 60% weighting due 26th June 2012
assessment
Theory & practical10 hoursLearning Units 1-6No short or long questions(sentences & paragraphs)Essay ResponseMarks: 100
Assignment 1
Theory & practical10 hoursLearning Units 7-13No short or long questions(sentences & paragraphs)Essay ResponseMarks: 100
Assignment 2
P17 of manual
Additional reading
EARLY CONCEPTS – 1776 TO 1880Industrial RevolutionAgricultural subsistence ->factory ad mass productionSpecialisation of labour (Smith & Babbage)Standardised parts (Whitney)
SCIENTIFIC MANAGEMENT – 1880 TO 1910Loading & scheduling charts (Gantt)Time & motion studies (Gilbreth)Process analysis/process optimisation(Taylor)
History of om
ERA OF MASS PRODUCTION – 1910 TO 1980Use of assembly line (Ford)Statistical sampling in quality control(Shewhart)Economic order quantity (EOQ) models (Harris)Linear programming, PERT and critical path (Du Pont)Materials requirement planning (MRP)Pareto analysis, cost of quality, quality trilogy (Juran)Total quality control (Feigenbaum/Ishikawa)
ERA OF LEAN PRODUCTION – 1980 TO 1995JIT/CAD evolved (Toyota)Electronic data interchange (EID)Empowerment of employeesTotal quality management (TQM)
History of om
ERA OF MASS CUSTOMISATION – 1995 TO PRESENTGlobalisationInternet – EcommerceEnterprise resource planning (ERP) – SAP,BAAN,
Q-MusicSupply chain management (SCM)Finite scheduling
History of om
Manufacturing Services Scheduling Inventory control Manufacturing Plant maintenance Productivity, efficiency, customer
service………..
SCOPE
The day to day management of processes Management of the strategic role
The process that makes things happen The management of the needs of the customer and
what the market requires
SCOPE
Must take into account the strategic and tactical plans
Ops Planning DecisionsHow much inventory to carryQuantity of raw materials to purchaseHow much overtime to workControl DecisionsBudget controlProductivity of factory
Operations planning & control decisions
Board of Directors
FinanceAccounts Payable
Accounts ReceivableInvestments
Loans
Operations ProductionLogistics
ProcurementProduct Design
MarketingSales PromotionMarket Research
AdvertisingCustomer Satisfaction
FUUNCTION RELATIONSHIP
Film
Operations at Emirates
1. MONEY – Finance available to produce goods or services
8 M’s of Operations Management
1. MONEY – Finance available to produce goods or services
2. MANPOWER – Selection, mentoring, training and rewarding of workforce
8 M’s of Operations Management
1. MONEY – Finance available to produce goods or services
2. MANPOWER – Selection, mentoring, training and rewarding of workforce
3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service
8 M’s of Operations Management
1. MONEY – Finance available to produce goods or services
2. MANPOWER – Selection, mentoring, training and rewarding of workforce
3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service
4. METHODS – Design of processes for optimisation and manufacture or deliver the service
8 M’s of Operations Management
1. MONEY – Finance available to produce goods or services
2. MANPOWER – Selection, mentoring, training and rewarding of workforce
3. MATERIALS – Obtaining, storage and quality of all materials required for manufacturing goods or rendering a service
4. METHODS – Design of processes for optimisation and manufacture or deliver the service
5. MANAGEMENT – Manage in roles of planning, organising, leading and controlling
8 M’s of Operations Management
1. MONEY – Finance available to produce goods or services2. MANPOWER – Selection, mentoring, training and
rewarding of workforce3. MATERIALS – Obtaining, storage and quality of all
materials required for manufacturing goods or rendering a service
4. METHODS – Design of processes for optimisation and manufacture or deliver the service
5. MANAGEMENT – Manage in roles of planning, organising, leading and controlling
6. MACHINES - Plant must be reliable and well maintained
8 M’s of Operations Management
1. MONEY – Finance available to produce goods or services2. MANPOWER – Selection, mentoring, training and rewarding
of workforce3. MATERIALS – Obtaining, storage and quality of all
materials required for manufacturing goods or rendering a service
4. METHODS – Design of processes for optimisation and manufacture or deliver the service
5. MANAGEMENT – Manage in roles of planning, organising, leading and controlling
6. MACHINES - Plant must be reliable and well maintained7. MESSAGES – Communication between departments,
management and employees
8 M’s of Operations Management
1. MONEY – Finance available to produce goods or services2. MANPOWER – Selection, mentoring, training and rewarding of
workforce3. MATERIALS – Obtaining, storage and quality of all materials
required for manufacturing goods or rendering a service4. METHODS – Design of processes for optimisation and
manufacture or deliver the service5. MANAGEMENT – Manage in roles of planning, organising,
leading and controlling6. MACHINES - Plant must be reliable and well maintained7. MESSAGES – Communication between departments,
management and employees8. MARKETS - Need to be aware of markets and market
requirements
8 M’s of Operations Management
GROUPS 20 MINUTES Imagine you are the managing director of a manufacturing company that manufactures dogfood. Write a profile of an operations manager you require for your factory
CLASS EXERCISE
OPERATIONS
FINANCE
HUMAN RESOURCE
S
SALES & MARKETIN
G
ITPURCHASING
ENGINEERING
QUALITY
RELATIONSHIP WITH OTHER DEPARTMENTS
INPUTSMoney
ManpowerMaterialsMethods
Management
MachinesMessagesMarkets
OUTPUTSFinished goods and
servicesTRANSFORMAT
ION
VALUE ADDED
FEEDBACK
TRANSFORMATION
SERVICES GOODSIntangible TangibleProvided by service organisations Produced by manufacturersImpossible to store Easy to storeCannot be transported Can be transportedConsume & produce simultaneously Delay between production &
consumptionLose value rapidly Maintain value much longerLikely to be unique Less likely to be uniqueHigh customer/provider interaction Little/no contactCustomers participate in service Little/no participationService near customer Centralised away from customerVery labour intensive Mostly automatedDifficult to measure quality Easier to measure qualityServer determines quality Does not depend on one personCannot measure output accurately Easier to measure output
GOODS VS SERVICES
GOODS SERVICES SCALE
High product contentMedium product content
Low product content
No product content
Laptop sales
Restaurant
Medical Services
Lecturing
GOODS
SERVICES
PRIMARY – Sourcing of raw material from natural sources eg. Mining, fishing, forestry
SECONDARY – Utilises the materials from primary functions in the manufacture of goods. All manufacturing operations fall into this category
TERTIARY –Rendering of services only eg. Doctor, attorney etc
MODES OF OM
DECENTRALISED – Local manager determines needs and therefore delivery date and time. Planning carried out only for this facility. ADVANTAGE: Reduced need for communication & control. DISADVANTAGE: Inventory levels hard to control, customer service?
CENTRALISED – All systems managed from a central point. All scheduling, purchasing, planning determined by Head Office. Management of inventory to ensure equitable distribution of raw materials. ADVANTAGE: Synchronisation of orders, production schedules etc. DISADVANTAGE: Ability to react quickly to local situations
OM STRUCTURES
GROUPS 20 MINUTES1. Provide examples of operations
managers and discuss the jobs of each2. What are the 8 M’s involved in this
lecture and how do they fit into the transformation process
3. Name examples of companies that provide goods and services or a combination of both
GROUP EXERCISE