Professional Documents
Culture Documents
Operations Management
William J. Stevenson
8th edition
1-2 Introduction to Operations Management
CHAPTER
1
Introduction to
Operations Management
Operations Management
Figure 1.1
Organization
Value-Added
Figure 1.2
The difference between the cost of inputs
and the value or price of outputs.
Value added
Inputs
Transformation/ Outputs
Land
Conversion Goods
Labor
process Services
Capital
Feedback
Control
Feedback Feedback
1-5 Introduction to Operations Management
Goods-service Continuum
Figure 1.3
Food Processor
Table 1.2
Hospital Process
Table 1.2
Financial services
Healthcare
Personal services
Business services
Education
1-9 Introduction to Operations Management
Key Differences
1. Customer contact
2. Uniformity of input
3. Labor content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Production and delivery
7. Quality assurance
8. Amount of inventory
1-10 Introduction to Operations Management
Scheduling
Managing inventories
Assuring quality
Motivating employees
And more . . .
1-11 Introduction to Operations Management
Figure 1.4
U.S. Manufacturing vs. Service Employment
Year Mfg. Service
45 79 21
100
50 72 28
55 72 28 80
60 68 32
Percent 60
65 64 36
70 64 36 40
75 58 42
80 44 46 20
85 43 57
0
90 35 65
95 32 68 45 50 55 60 65 70 75 80 85 90 95 00
00 30 70 Year
1-13 Introduction to Operations Management
Planning Organizing
Capacity Degree of centralization
Location Process selection
Products & services Staffing
Make or buy Hiring/laying off
Layout Use of Overtime
Projects Directing
Scheduling Incentive plans
Controlling/Improving Issuance of work orders
Inventory Job assignments
Quality
Costs
Productivity
1-14 Introduction to Operations Management
What
What resources/what amounts
When
Needed/scheduled/ordered
Where
Work to be done
How
Designed
Who
To do the work
1-15 Introduction to Operations Management
Operations
Marketing Finance
1-16 Introduction to Operations Management
Operations Interfaces
Industrial
Engineering
Maintenance
Distribution
Purchasing Public
Operations Relations
Legal
Personnel
Accounting MIS
1-17 Introduction to Operations Management
Trends in Business
Major trends
The Internet, e-commerce, e-business
Management technology
Globalization
Agility