15    Managing Operations, Quality, and Productivity

 

A.  Operations Management:  activities used by an organization to transform resource  inputs

                                            into products and services.

 

            *  Efficient and effective management of operations is essential to compete

            *  Operations management creates value and utility

 

            Manufacturing:  combines and transforms inputs into tangible outcomes that are sold

 

            Service organization:  transforms resources into intangible outputs, creating time &  

                                              place utility

 

            *  Operations management is important because:

 

 

B.  Designing Operating Systems

            *  Must consider the product-service mix and capacity

            1.  Facilities:  location where products & services are created, stored, and distributed

                        *  Location

 

            2.  Layout:  configuration of facilities & the arrangement of equipment

                        *  Product

 

                        *  Process

 

                        *  Fixed position

 

                        *  Cellular

 

C.  Organizational Technologies

            1.  Technology:  processes that convert resources into products or services

            2.  Automation:  designing work so that it can be almost completely performed by machines.

                        *  CAM

 

                        *  CAD

 

                        *  FMS

            3.  Robotics:  science and technology of the construction, maintenance, and the use  

                                of robots

                        *  Robot

 

            4.  Service technology:  moving towards automated systems and procedures

 

 

D.  Supply Chain Management:

            1.  Purchasing Management:

 

            2.  Inventory Management:

 

                        *  Materials control

 

                        *  JIT

 

E.  Quality

 

            1.  Why is quality important?

 

 

 

            2.  What are the eight dimensions of quality?

 

 

           

            3.  What is Total Quality Management?

                        *  ISO 9000

                       

                        *  SQC

 

                        *  Benchmarking

 

                        *  Outsourcing

 

                        *  Speed

 

F.  Productivity:  economic measure that summarizes the value of outputs to inputs

            1.  Levels of productivity

                        *  Aggregate

            *  Industry

            *  Company

            *  Unit

            *  Individual

2.  Forms

            *  Total factor

 

            *  Labor productivity

 

            *  Why is productivity important and what are the trends?

            *   How can we improve productivity?