Marketing Manager Course - Chapter 17

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Marketing Manager Course - Chapter 17

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  1. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  2. Chapter 17 Operations Management McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  3. Learning Objectives After reading this chapter, you should be able to: Define operations management and its three stages: inputs, transformation and disposition. Describe how operations management ensures supplies of inputs and an efficient production system. Use tools of operations management, including Gantt charts, PERT networks, and statistical process tools. Explain the role of quality management in the operations management process. Understand and apply the principles of quality management, kaizen, just-in-time manufacturing, and kanban to the production process. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  4. What is Operations Management? Operations management is the process an organization uses to: Obtain the materials or ideas for the product it provides. Transform the materials or ideas into the product. Provide the final product to a user. Operations management is closely linked to: Strategic Management (Chapter 7) Planning (Chapter 5) Information Systems Management (Chapter 18) McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  5. Skills for Operations Management Organization Skills Analytical Problem Communication Solving Skills Skills McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  6. The Operations Management Process Inputs C onversi on O ut s put Raw materials Facility Goods Labor Capacity Services Energy Process Information Knowledge Control McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  7. Planning in Operations Management Planning is the foundation of operations management. Planning – the management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  8. Strategic Planning Strategic management decisions involved in operations management: Make-buy analysis: whether to produce an item or to purchase it. Capacity: firm’s ability to produce the product during a given period. Facilities: design and location of an operations facility. Process: how a product or a service will be produced. Facilities layout design: physical arrangement that allows for efficient production. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  9. Acquiring Inputs Inputs are the supplies needed to create a product. Materials requirements planning: analyzing a design to determine the materials and parts required in the production process. Inventory: the stock of raw materials, inputs, and component parts that the firm keeps on hand. Reordering systems: the process used to help keep inventory levels more or less consistent. Fixed point reordering system Fixed interval reordering system McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  10. The Conversion Process Conversion process: the stage in which the product’s inputs are converted to the final product. An effective conversion process: Works to lower the cost of creating the product; or to Create a better product for the same cost. Key decision areas: Designing the process Monitoring the process McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  11. Designing the Process Process design begins with analyzing the general operation and identifying: Every major step that needs to be done. The order that the steps must take. The flow of the steps from start to finish (including their relationship to each other). The amount of time each individual step requires. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  12. Example of Process Analysis Information Step Order Relation to Other Steps Time A. Get permit 1 None 4 weeks B. Order equipment 1 None 1 week C. Paint interior 2 None 2 weeks D. Install electrical 3 Following C 1 week fixtures E. Install floors 4 Following C 1 week F. Install equipment 5 Following B, E 1 week G. Test equipment 6 Following F 1 week McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  13. Process Design Tools Gantt Charts: provide a visual sequence of the process steps. Load Charts: type of Gantt chart based on departments or specific resources that are used in the process. Program Evaluation and Review Technique (PERT) Network: tool for analyzing the conversion process. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  14. Example of a Gantt Chart WEEKS Start 1 2 3 4 5 Get permit ---------------------------------------------------- Order baking equipment ------------------- Paint interior ----------------------------- Install electrical fixtures ------------ Install floors ------------ Install baking equipment ----------- Test equipment ----------- McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  15. Example of a Load Chart WEEKS Start 1 2 3 4 5 Office Staff ------------------- Order department ------------------- Painter ----------------------------- Electrician ---------------------------------- Carpenter ------------ McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  16. Example of a PERT Network Get permit 1 4 1 Start 1 Order baking equipment Install baking equipment Test equipment 1 1 1 1 1 Paint interior Install electrical Install floors fixtures McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  17. Facilities Layout Facilities layout - the grouping and organization of equipment and employees Product layout - where each function is performed in a fixed sequence Process layout - where each work station is relatively self- contained Fixed position layout - where remote work stations assemble components, and they are then brought to a final assembly area McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  18. Flexible Manufacturing Flexible manufacturing – techniques that help reduce the setup costs associated with the production system computer aided design, engineering, and manufacturing tools make the work process more flexible McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  19. Process Monitoring Tools A cceptance St i i atstcal Sam plng i Process C ontrol Tot Fact al or Partal i Productviy i t Productviy i t McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
  20. Statistical Process Control Tools C heck Sheets Paret A nal s o ysi Process Flow A nal s ysi C ause- and- Ef ectD i f agram s Process C apabiiy lt C ont C hart rol s M easures McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
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