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OPERATION AND PRODUCTIVITY

operations for goods and services

is

few pure services

distinction not always clear

operations activities often very similar

maufaxturers produce tangible product services often intangible

growth for services

Service sector

The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.

service pay

Perception that services are low-paying

the productivity challenge

productivity and the service sector

often difficult to evaluate for quality

often difficult to mechanize and automate

often an intellectual task performed by professionals

frequently focused on unique individual attributes or desires

typically labor intensive

productivity variabels

management

capital

labor

measurement problems

precise units

external elements

productivity measurement

productivity = unit produce : input used

Multifactor productivity = output : (Labor + Material + Energy + Capital + Miscellaneous)

Single factor productivity = units produced : labor hours used

the economic system

outputs

transformation

inputs

Productivity is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital)

current challenge in operations management

learn operations

mass customization

rapid product development

sustainability

supply-chain partnering

global focus

ethics, social responsibility and sustainability

honor stakeholder commitments

train, retrain, and motivate employees in a safe workplace

develop and produce safe, high quality green products

operation management

operation management ( OM )

operation

organizing to produce goods and service

essential function

finance/accounting

production/operations

marketing

the heritage of operations management

contributions from

information technology

physical science

biological science

management science

industrial engineering

human factors

teory

internet (1995)

Globalization(1992)

Computer integrated manufacturing (1990)

Baldrige Quality Awards (1980)

Flexible manufacturing system (FMS 1975)

Computer aided design (CAD 1970)

Material requirements planning (Orlicky 1960)

CPM/PERT (DuPont 1957, Navy 1958)

Quality control (Shewhart 1924; Deming 1950)

computer ( Atanasoff 1938)

Motion study (Frank and Lillian Gilbreth 1922)

Gantt charts (Gantt 1916)

Coordinated assembly line (Ford/ Sorenson 1913)

Scientific Management (Taylor 1881)

Standardized parts (Whitney 1800)

Division of labor (Adam Smith 1776; Charles Babbage 1852)

operations management position

process improvement consultants

supply chain manager and planner

quality manager

operations analyst

plant manager

operations managers do

certification

CIPS

Council of Supply Management Professionals

PMI

ISM

ASQ

APICS

strategic decision

maintenance

scheduling

inventory management

supply-chain management

human resources and job design

layout strategy

location strategy

process and capacity design

managing quality

design of goods and service

the OM jobs

inventory reduction

productivity improvement

cost reduction

quality

customer service

people / team develop

response time

strategic issues

facilities / space utilization

technology / methods

basic management functions

controlling

leading

staffing

planning

organizing

why study MO?

such a costly part of an organization

to understand what operations managers do

to know how goods and services are produced

study how people organize themselves for productive enterprise

the supply chain

members of the supply chain collaborate to achieve high levels of customer satisfaction, efficiency, and competitive advantage

global network of organization and activities that supply a firm with goods and services