PRODUCTION AND OPERATIONS MANAGEMENT Wrap up before final 1
THE FULL STORY n n n n WHAT IS OM? HOW CAN OPERATIONS SUPPORT THE CORPORATE STRATEGY? WHAT IS DIFFERENT IN A GLOBAL COMPANY IN TERMS OF OPERATIONS? WHAT IS QUALITY IN A PRODUCTIVE ENVIRONMENT? CAN WE FORESEE THE FUTURE? TOOLS FOR THE DESIGN OF PRODUCTS OR SERVICES TYPES OF ORGANIZATIONS/SETUPS FOR MANUFACTURING PRODUCTS OR PROVIDING SERVICES WILL WE BE CAPABLE OF SUPPLYING PRODUCTS/SERVICES AS DEMANDED? WHERE DO WE LOCATE PRODUCTION FACILITIES? HOW TO ORGANIZE SPACE FOR PRODUCTION HOW SHOULD THE MAIN ASSET (HR) BE MANAGED? HOW CAN WE MANAGE SUPPLIES AND END PRODUCTS? HOW SHOULD WE MANAGE STORED PRODUCTS AND PARTS? HOW SHOULD WE PLAN AVAILABILITY OF RESOURCES FOR PRODUCTION? HOW CAN WE PLAN THE NEEDS OF MATERIAL RESOURCES? POM J. Galvan 2
Something to view POM J. Galvan 3
Chapters included 0_INTRODUCTION 1_PRODUCTION AND OPERATIONS MANAGEMENT 2_OPERATIONS STRATEGY 3_OPERATIONS IN A GLOBAL ENVIRONMENT 4_MANAGING QUALITY 5_FORECASTING 6_DESIGN OF GOODS & SERVICES 7_PROCESS STRATEGY 8_CAPACITY PLANNING POM J. Galvan 4
Chapter 1. - Production & Operations Management n WHAT IS OM? • Definition of P&OM • Roles of operations manager in different types of companies • Types of decisiones made • Attributes of goods & services • Productivity: Definition and ways to calculate it POM J. Galvan 5
Chapter 2. - Operations strategy n HOW CAN OPERATIONS SUPPORT THE CORPORATE STRATEGY? • Order qualifiers and order winners • 4 stages in the contribution of manufacturing to a global estrategy • 4 stages of service companies competitiveness POM J. Galvan 6
Chapter 3. - Operations in a global environment n WHAT IS DIFFERENT IN A GLOBAL COMPANY IN TERMS OF OPERATIONS • Location decisions n n Country-related issues Product-related issues Government policy/political risk Organizational issues • Logistics management n n n Flow of materials Transportation options and speed Inventory levels Packaging Storage • Supply chain management n n Sourcing Vertical integration Make-or-buy decisions Partnering POM J. Galvan 7
Chapter 4. - Managing quality n WHAT IS QUALITY IN A PRODUCTIVE ENVIRONMENT? • Why quality? • TQM and how to emplement it • What is quality? • Why quality management standards? • What is certification? • Tools for quality management POM J. Galvan 8
Chapter 5. - Forecasting n CAN WE FORESEE THE FUTURE? • • • Definition of forecasting Forecast design Qualitative forecasts Jury of executive opinion – Identify consensus n Sales force composite – Identify consensus n Delphi method – Identify consensus n Consumer Market Survey – Ask and observe n • Quantitative forecasts n n Time series models – Knowing history = estimate future Causal models – A change in one variable = Observed effect POM J. Galvan 9
Chapter 6. - Design of goods and services n TOOLS FOR THE DESIGN OF PRODUCTS OR SERVICES • • • Attributes of a product Product life cycle Product development stages o o Customer Requirements Functional Specification Product Specifications Design Review o Documents o Which? Those that will allow manufacturing with existing machines o Coding of parts POM J. Galvan 10
Chapter 7. - Process strategy n TYPES OF ORGANIZATIONS/SETUPS FOR MANUFACTURING PRODUCTS OR PROVIDING SERVICES • Process structures in services n Front, back and hybrid office • Product process matrix in manufcaturing n n n Job shop Small batch Large batch Line process Continuous process • Tools for process design n Flow diagrams Process charts Simulations • The road to automation • The breakeven analysis in process design – Should we invest in a new machine/process? POM J. Galvan 11
Chapter 8. - Capacity planning WILL WE BE CAPABLE OF SUPPLYING PRODUCTS/SERVICES AS DEMANDED? • Meaning of capacity and utilization • The planning process – Alternatives • Capacity planning strategies • Capacity decisions • Matching capacity to demand POM J. Galvan 12
Chapter 9. - Location strategies n WHERE DO WE LOCATE PRODUCTION FACILITIES? • Choices: n n Cost Revenues • Factors to be taken into account • Location evaluation methods: n n Factor-rating method Locational break-even analysis Center of gravity method Transportation model • The case of services POM J. Galvan 13
Chapter 10. - Layout strategies n HOW TO ORGANIZE SPACE FOR PRODUCTION • Types of arrangements § § § Fixed-position layout Process-oriented layout Office layout Retail/service layout Warehouse layout Product-oriented layout POM J. Galvan 14
Chapter 11. - Human resources HOW SHOULD THE MAIN ASSET (HR) BE MANAGED? n Employment strategies • Follow demand (lay off) • Hold employment n n Work schedules • Standard work schedule • Flex-time • Flexible work week • Part-time Job design • Components of job design n n n Specialization Expansion Enrichment Rotation Empowerment Labor standards • Time studies • Work sampling POM J. Galvan 15
Chapter 12. - Supply chain management HOW CAN WE MANAGE SUPPLIES n Distribution AND END PRODUCTS? • Inventory measures and n Meaning of supply chain SC performance management • SC dynamics n Elements: n Negotiation strategies n Purchasing • cost-based price model n Production control • market-based price model n Distribution n Purchasing function. Definition • competitive bidding and strategies • Materials management • Make buy • Centralize • Cooperate - Compete • Few suppliers - Many suppliers • Keiretsu network • Vertical integration 16 POM J. Galvan • Virtual company
Chapter 13. - Inventory management HOW SHOULD WE MANAGE STORED PRODUCTS AND PARTS? n Definition of inventories, types and control n Costs • Holding • Ordering • Setup n Management models: Fixed order or period n EOQ, POQ, Quantity discount POM J. Galvan 17
Chapter 14. - Aggregate planning HOW SHOULD WE PLAN AVAILABILITY OF RESOURCES FOR PRODUCTION? n Planning strategies • Capacity • • • changing inventory levels varying work force size by hiring or layoffs varying production capacity through overtime or idle time subcontracting using part-time workers • Demand • influencing demand • backordering during high demand periods • counterseasonal product mixing POM J. Galvan 18
Chapter 15. - MRP • HOW CAN WE PLAN THE NEEDS OF MATERIAL RESOURCES? • Differences between dependent & independent demand POM J. Galvan 19
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