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
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
