to accompany The Future of Business Fourth Edition Adapted by Norm Althouse University of Calgary Copyright 2014 by Nelson Education Ltd Achieving WorldClass Operations Management ID: 709227
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NETA PowerPoint Presentations to accompany The Future of BusinessFourth EditionAdapted by Norm Althouse, University of Calgary
Copyright © 2014 by Nelson Education Ltd.Slide2
Achieving World-Class Operations ManagementChapter 15Copyright © 2014 by Nelson Education Ltd. Chapter 15Slide3
Copyright © 2014 by Nelson Education Ltd.Making the ConnectionSlide4
Learning OutcomesDiscuss why production and operations management are important in both manufacturing and service companies.List the types of production processes used by manufacturers and service companies.Describe how organizations decide where to put their production facilities and what choices must be made in designing the facility.Explain why resource-planning tasks like inventory management and supplier relations are critical to production.Discuss how operations managers schedule and control production.Copyright © 2014 by Nelson Education Ltd. 4Slide5
Learning Outcomes (cont’d)Evaluate how quality management and lean-manufacturing techniques help companies improve production and operations management.Identify the roles that technology and automation play in manufacturing and service industry operations management.List some of the trends affecting the way companies manage production and operations.Copyright © 2014 by Nelson Education Ltd. 5Slide6
Discuss why production and operations management are important in both manufacturing and service companies.Copyright © 2014 by Nelson Education Ltd. 6Slide7
Basic TermsCopyright © 2014 by Nelson Education Ltd. 7Production – Creation of products by turning inputs into outputs, which are goods and services.Operations management – Management of the production process.Production planning – Aspect of operations management in which the company considers its resources and its own strategic goals to determinethe best production methods.Slide8
Exhibit 15.1: Production Process for Products and ServicesCopyright © 2014 by Nelson Education Ltd. 8Slide9
Production and Operations ManagementCopyright © 2014 by Nelson Education Ltd. 9DecisionsProduction PlanningProduction ControlImproving Production and OperationsSlide10
Production PlanningCopyright © 2014 by Nelson Education Ltd. 101 year 2 years 3 – 5 yearsShort-TermMedium-TermLong-TermType of Production ProcessSite SelectionFacility LayoutResource Planning
Planning DecisionsSlide11
List the types of production processes used by manufacturers and service companies. Copyright © 2014 by Nelson Education Ltd. 11Slide12
Exhibit 15.2: Classification of Production TypesCopyright © 2014 by Nelson Education Ltd. 12Slide13
Converting Inputs to OutputsCopyright © 2014 by Nelson Education Ltd. 13Production involves converting inputs (raw materials, parts, human resources) into outputs (products and services).Process ManufacturingAssembly ProcessBasic input is broken down into one or more outputs.Basic inputs are combined or transformed into the output.Slide14
Exhibit 15.3: Converting Inputs to OutputsCopyright © 2014 by Nelson Education Ltd. 14Slide15
Production TimingCopyright © 2014 by Nelson Education Ltd. 15Continuous ProcessIntermittent ProcessLong production runs without equipment shutdown.Short production runs to make batches of different products.Slide16
Describe how organizations decide where to put their production facilities and what choices must be made in designing the facility.Copyright © 2014 by Nelson Education Ltd. 16Slide17
Location, Location, LocationCopyright © 2014 by Nelson Education Ltd. 17Availability of production inputs.Marketing factors.Manufacturing environment.Local incentives.International location considerations.Slide18
Designing the FacilityCopyright © 2014 by Nelson Education Ltd. 18See Exhibit 15.4 in the textbook.Process LayoutProduct LayoutWork flows according to the process.Workstations/departments arranged in a line, with products moving along the line.Fixed-Position LayoutProduct stays in one place.
Cellular ManufacturingSmall, self-contained production units.Slide19
Explain why resource-planning tasks like inventory management and supplier relations are critical to production.Copyright © 2014 by Nelson Education Ltd. 19Slide20
Resource PlanningCopyright © 2014 by Nelson Education Ltd. 20Make or BuyInventory ManagementComputerized Resource PlanningManufacturing Resource Planning (MRP)Slide21
Make or Buy DecisionsCopyright © 2014 by Nelson Education Ltd. 21Some of the factors would include:quantity of items needed.standard or nonstandard items.size of components.special design features.quality and reliability of suppliers.Slide22
Inventory ManagementCopyright © 2014 by Nelson Education Ltd. 22InventoryInventory ManagementPerpetual InventorySupply of goods a company holds for use in production or for sale.Determines how much inventory a company will keep on hand and the ordering, receiving, storing, and tracking of inventory.Continuous updated list of inventory levels, orders, sales, and receipts.Slide23
Computerized Resource PlanningCopyright © 2014 by Nelson Education Ltd. 23Materials Requirement Planning (MRP)computerized system of controlling the flow of resources and inventoryManufacturing Resource Planning II (MRPll)complex computerized system that integrates data from many departments to allow managers to forecast and assess the impact of production plans on profitability more accuratelyEnterprise Resource Planning (ERP)computerized resource-planning system incorporates information about the company’s suppliers and customers with its internally generated dataSlide24
Supply Chain ManagementCopyright © 2014 by Nelson Education Ltd. 24Supply ChainSupply Chain ManagementEntire sequence of securing inputs, producing goods, and delivering them to the customers.Process of smoothing transitions along the supply chain to satisfy customers and develop tighter bonds with suppliers.Goal:Satisfy customers with quality products and services.Slide25
Discuss how operations managers schedule and control production.Copyright © 2014 by Nelson Education Ltd. 25Slide26
Production ControlCopyright © 2014 by Nelson Education Ltd. 26RoutingSchedulingValue-Stream Mapping Gantt ChartCritical Path Method (CPM)PERTSlide27
Exhibit 15.5: A Typical Gantt ChartCopyright © 2014 by Nelson Education Ltd. 27Slide28
Exhibit 15.6: A CPM Network for Building a HouseCopyright © 2014 by Nelson Education Ltd. 28Slide29
Evaluate how quality management and lean-manufacturing techniques help companies improve production and operations management.Copyright © 2014 by Nelson Education Ltd. 29Slide30
Improving Production and OperationsCopyright © 2014 by Nelson Education Ltd. 30QualityQuality ControlTotal Quality ManagementContinuous ImprovementSlide31
Putting Quality FirstCopyright © 2014 by Nelson Education Ltd. 31Six SigmaDefining what needs to be done to ensure quality; measure and analyze results and ongoing improvement.ISO 9000Set of five technical standards of quality management to provide a uniform way of determining whether there is conformity to sound quality procedures.ISO 1400Set of technical standards to promote clean production processes to protect the environment.Slide32
Lean ManufacturingCopyright © 2014 by Nelson Education Ltd. 32Lean ManufacturingStreamlining production – eliminating steps that do not add benefits for end users.Just-in-Time (JIT)Materials arrive exactly when they are needed for production, rather than being stored on site.Slide33
Identify the roles that technology and automation play in manufacturing and service industry operations management.Copyright © 2014 by Nelson Education Ltd. 33Slide34
Technology and Automation at Your ServiceCopyright © 2014 by Nelson Education Ltd. 34Computer-Aided Design and Manufacturing SystemsRoboticsFlexible Manufacturing SystemsComputer-Integrated ManufacturingPOS, ATMs, and so onSlide35
List some of the trends in trends affecting the way companies manage production and operations.Copyright © 2014 by Nelson Education Ltd. 35Slide36
The Future of Production and Operations ManagementCopyright © 2014 by Nelson Education Ltd. 36Asset management.Modular production.Designing products for production efficiency.