Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Management
Operations and Productivity
Chapter 1
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-1
Management, 7e
Outline
PROFILE: HARD ROCK CAFE
WHAT IS OPERATIONS MANAGEMENT?
ORGANIZING TO PRODUCE GOODS AND
SERVICES
WHY STUDY OM?
WHAT OPERATIONS MANAGERS DO
How This Book Is Organized
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-3
Management, 7e
Outline - Continued
THE PRODUCTIVITY CHALLENGE
Productivity Measurement
Productivity Variables
Productivity and the Service Sector
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-4
Management, 7e
Learning Objectives
When you complete this chapter, you should be
able to :
Identify or Define:
Production and productivity
Operations Management (OM)
What operations managers do
Services
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-5
Management, 7e
Learning Objectives - Continued
When you complete this chapter, you should be
able to :
Describe or Explain:
A brief history of operations management
Career opportunities in operations management
The future of the discipline
Measuring productivity
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-6
Management, 7e
The Hard Rock Cafe
First opened in 1971
Now – 110 restaurants in over 40 countries
Rock music memorabilia
Creates value in the form of good food and
entertainment
3,500+ custom meals per day
How does an item get on the menu?
Role of the Operations Manager
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-7
Management, 7e
What Is Operations Management?
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-8
Management, 7e
Organizing to Produce Goods and
Services
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-9
Management, 7e
Organizing to Produce Goods and
Services
Essential functions:
Marketing – generates demand
Operations –creates the product
Finance/accounting – tracks organizational
performance, pays bills, collects money
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-10
Management, 7e
Organizational Functions
Marketing
Gets customers
Operations
creates product or service
Finance/Accounting
Obtains funds
Tracks money
© 1995 Corel Corp.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-11
Management, 7e
Sample Organization Charts
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-12
Management, 7e
Functions - Bank
Commercial Bank
© 1984-1994
T/Maker Co.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-13
Management, 7e
Functions - Airline
Airline
© 1984-1994 T/Maker Co.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-14
Management, 7e
Functions - Manufacturer
Manufacturing
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-15
Management, 7e
Organizational Charts
Commercial Bank
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-16
Management, 7e
Organizational Charts
Airline
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-19
Management, 7e
Why Study OM?
OM is one of three major functions
(marketing, finance, and operations) of any
organization.
We want (and need) to know how goods and
services are produced.
We want to understand what operations
managers do.
OM is such a costly part of an organization.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-20
Management, 7e
Options for Increasing
Contribution
Marketing Finance & OM Option
Option Accounting
Option
Current Sales Finance Production
Revenue : Costs: -50% Costs: -20%
+50%
Sales $100,000 $150,000 $100,000 $100,000
Cost of -80,000 -120,000 -80,000 -64,000
Goods Sold
Gross 20,000 30,000 20,000 36,000
Margin
Finance -6,000 -6,000 -3,000 -6,000
Costs
Net 14,000 24,000 17,000 30,000
Margin
Taxes @ -3,500 -6,000 -4,250 -7,500
25%
Contribution 10,500 18,000 12,750 22,500
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-21
Management, 7e
What Operations Managers Do
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-22
Management, 7e
Ten Critical Decisions
Service, product design…………….. Ch. 5
Quality management………………… Ch. 6, 6S
Process, capacity design………….. Ch. 7, 7S
Location …………….………………… Ch. 8
Layout design ……………………….. Ch. 9
Human resources, job design…….. Ch. 10, 10S
Supply-chain management………… Ch. 11,11s
Inventory management ……………. Ch. 12, 14, 16
Scheduling …………………………… Ch. 3, 13, 15
Maintenance …………………………. Ch. 17
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-23
Management, 7e
The Critical Decisions
Quality management
Who is responsible for quality?
How do we define quality?
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-24
Management, 7e
The Critical Decisions - Continued
Process and capacity design
What processes will these products require and in
what order?
What equipment and technology is necessary for
these processes?
Location
Where should we put the facility
On what criteria should we base this location
decision?
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-25
Management, 7e
The Critical Decisions - Continued
Layout design
How should we arrange the facility?
How large a facility is required?
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-26
Management, 7e
The Critical Decisions - Continued
Supply chain management
Should we make or buy this item?
Who are our good suppliers and how many should
we have?
Inventory, material requirements planning,
How much inventory of each item should we have?
When do we re-order?
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-27
Management, 7e
The Critical Decisions - Continued
Intermediate, short term, and project
scheduling
Is subcontracting production a good idea?
Are we better off keeping people on the payroll
during slowdowns?
Maintenance
Who is responsible for maintenance?
When do we do maintenance?
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-28
Management, 7e
Where are the OM Jobs
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-29
Management, 7e
Where are the OM Jobs
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-30
Management, 7e
Where Are the OM Jobs?
Technology/methods
Facilities/space utilization
Strategic issues
Response time
People/team development
Customer service
Quality
Cost reduction
Inventory reduction
Productivity improvement
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-31
Management, 7e
The Heritage of Operations Management
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-32
Management, 7e
Significant Events in Operations
Management
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-33
Management, 7e
The Heritage of
Operations Management
Division of labor (Adam Smith 1776 and Charles Babbage 1852)
Standardized parts (Whitney 1800)
Scientific Management (Taylor 1881)
Coordinated assembly line (Ford/Sorenson/Avery 1913)
Gantt charts (Gantt 1916)
Motion study (Frank and Lillian Gilbreth 1922
Quality control (Shewhart 1924; Deming 1950)
Computer (Atanasoff 1938)
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-34
Management, 7e
The Heritage of Operations
Management - Continued
Material requirements planning (Orlicky 1960)
Computer aided design (CAD 1970)
Flexible manufacturing system (FMS 1975)
Baldrige Quality Awards (1980)
Computer integrated manufacturing (1990)
Globalization(1992)
Internet (1995)
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-35
Management, 7e
Eli Whitney
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-36
Management, 7e
Frederick W. Taylor
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-37
Management, 7e
Taylor: Management Should Take
More Responsibility for
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-38
Management, 7e
Frank & Lillian Gilbreth
Frank (1868-1924); Lillian
(1878-1972)
Husband-and-wife
engineering team
Further developed work
measurement methods
Applied efficiency methods
to their home & 12 children!
(Book & Movie: “Cheaper
by the Dozen,” book: “Bells
on Their Toes”) © 1995 Corel Corp.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-39
Management, 7e
Henry Ford
Born 1863; died 1947
In 1903, created Ford ‘Make them all
Motor Company alike!’
moved by conveyor
past work station
Paid workers very well for 1911 ($5/day!)
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-40
Management, 7e
W. Edwards Deming
Born 1900; died 1993
Engineer & physicist
Credited with teaching Japan
quality control methods in
post-WW2
Used statistics to analyze
process
His methods involve workers
in decisions
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-41
Management, 7e
Contributions From
Human factors
Industrial engineering
Management science
Biological science
Physical sciences
Information science
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-42
Management, 7e
Significant Events in OM
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-43
Management, 7e
Significant Events - Continued
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-44
Management, 7e
New Challenges in OM
From To
Local or national focus Global focus
Batch shipments Just-in-time
Low bid purchasing Supply chain
partnering
Lengthy product Rapid product
development development,
alliances
Standard products Mass customization
Job specialization Empowered
employees, teams
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-45
Management, 7e
Operations in the Service Sector
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-46
Management, 7e
Characteristics of Goods
Tangible product
Consistent product
definition
Production usually
separate from
consumption
Can be inventoried
Low customer
interaction © 1995 Corel Corp.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-47
Management, 7e
Characteristics of Service
Intangible product
Produced & consumed at
same time
Often unique
High customer interaction
Inconsistent product
definition
Often knowledge-based
Frequently dispersed
© 1995 Corel Corp.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-48
Management, 7e
Service Economies
Proportion of Employment in the Service Sector
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-49
Management, 7e
Goods Versus Services
Goods Service
Can be resold Reselling unusual
Can be inventoried Difficult to
inventory
Some aspects of Quality difficult to
quality measurable measure
Selling is distinct Selling is part of
from production service
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-50
Management, 7e
Goods Versus Services -
Continued
Goods Service
Product is Provider, not product
transportable is transportable
Site of facility Site of facility
important for cost important for
customer contact
Often easy to Often difficult to
automate automate
Revenue generated Revenue generated
primarily from primarily from
tangible product intangible service.
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-51
Management, 7e
Goods Contain Services / Services
Contain Goods
Automobile
Computer
Installed Carpeting
Fast-food Meal
Restaurant Meal
Auto Repair
Hospital Care
Advertising Agency
Investment Management
Consulting Service
Counseling
100 75 50 25 0 25 50 75 100
Percent of Product that is a Good Percent of Product that is a Service
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-52
Management, 7e
Organizations in Each Sector – Table 1.4
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-53
Management, 7e
Organizations in Each Sector – Table 1.4
Service Sector Example % of
all
Jobs
Business & Repair Snelling & Snelling, Waste 7.1
Services Management, Pitney-Bowes
Finance, Insurance, Citicorp, American Express, 6.5
Real Estate Prudential, Aetna, Trammel Crow
Food, Lodging, McDonald’s, Hard Rock Café, 5.2
Entertainment Motel 6, Hilton Hotels, Walt Disney
Paramount Pictures
Public Administration U.S., State of Alabama, Cook 4.5
County
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-54
Management, 7e
Organizations in Each Sector – Table 1.4
Manufacturing Example % of
Sector all
Jobs
General General Electric, Ford, U.S. Steel, 14.8
Intel
Construction Bechtel, McDermott 7.0
Agriculture King Ranch 2.4
Mining Homestake Mining 0.4
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-55
Management, 7e
Organizations in Each Sector – Table 1.4
Summary
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-56
Management, 7e
Development of the Service Economy
40 Italy 150
Industry
30 Britain
100
20 Japan
Farming 50
10
W Germany
0 0
1970
1850 75 1900 25 50 75 2000 40 50 60 70 1970 75 80 85 90 95 2000
2000
Percent
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-57
Management, 7e
Exciting New Challenges in Operations
Management
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-58
Management, 7e
Changing Challenges for the
Operations Manager
Past Causes Future
Local or Low-cost, reliable worldwide Global Focus
national communication and
focus transportation networks
Batch (large) Cost of capital puts pressure on Just-in-time
shipments reducing investment in shipments
inventory
Low-bid Quality emphasis requires that Supply-chain
purchasing suppliers be engaged in product partners
improvement
Lengthy Shorter life cycles, rapid Rapid product
product international communication, development,
development computer-aided design, and alliances,
international collaboration collaborative
designs
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-59
Management, 7e
Changing Challenges for the
Operations Manager
Past Causes Future
Standardized Affluence and worldwide markets; Mass
products increasingly flexible production customization
processes
Job Changing sociocultural milieu. Empowered
specialization Increasingly a knowledge and employees,
information society. teams, and lean
production
Low cost Environmental issues, ISO 14000, Environmentally
focus increasing disposal costs sensitive
production,
Green
manufacturing,
recycled
materials,
remanufacturing
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-60
Management, 7e
The Productivity Challenge
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-61
Management, 7e
The Economic System
Transforms Inputs to Outputs
Inputs Process Outputs
Feedback loop
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-62
Management, 7e
Typical Impact of Quality
Improvement
As productivity improved Costs were pared Wages increased
Parts per man hour Cost per unit decreased Average worker's annual cash
compensation increased
$2.25
115
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-63
Management, 7e
Productivity
Measure of process improvement
Represents output relative to input
Productivity Units produced
= Input used
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-64
Management, 7e
Multi-Product Productivity
Productivity =
Output
Labor + material + energy + capital + miscellaneous
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-65
Management, 7e
Measurement Problems
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-66
Management, 7e
Productivity Variables
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-67
Management, 7e
Key Variables for Improved Labor
Productivity
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-68
Management, 7e
Jobs in the U.S
16% Construction
Federal Government
18%
Mining
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-69
Management, 7e
Comparison of Productivity
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-70
Management, 7e
Investment and Productivity
in Selected Nations
10
U.S.
U.K.
8
Percent increase in productivity
Canada
6 Italy
Belgium
(Mfg)
4 France
Netherlands
2 Japan
Best fit
0
10 15 20 25 30 35
Nonresidential fixed investment to GNP (%)
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-71
Management, 7e
Service Productivity
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-72
Management, 7e
The Challenge of Social Responsibility
Transparency Masters to accompany Heizer/Render – © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Principles of Operations Management, 5e, and Operations 1-73
Management, 7e