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1、Operations Management运营管理云南大学商旅学院 吴奇志1Please ContactCell Phone：0871-6770167 Email ： 2AnnouncementPlease notify me in advance if you are absent or late, taking a French leave is not allowed.According to the rules made by MBA office, those who are absent one third or above from the total classes will
2、 be barred from the final exam, no matter what grade you get in the other 2!3 If you have any comments, please feel free to let me know, either by email, phone call or face-to-face talk, Id prefer the latter for its high efficiency. Your suggestions are welcomed so I am open to them all the time. Be
3、sides, Id like you to treat me not only like a teacher, but a friend as well. Thanks for the POM course, for it serves as a bridge between us.4Performance AppraisalParticipation & Attendance：25%Assignment & Case Study in Written Form：25% Final Exam：50% 5Operations Management for Competitive Advantag
4、e Richard B. Chase, Nicholas J. Aquilano, F. Robert Jacobs Ninth Edition McGraw-HillText Book6Main Reference Books1 Operations ManagementJay Heizer, Barry Render / Seventh Edition / Pearson Education2 Operations ManagementWilliam J. Stevenson / Seventh Edition / McGraw-Hill7Guideline in Teaching Thi
5、s Course Focus on birds-eye view of POM rather than a certain specific content, Focus on the managerial matter of POM rather than methodologies and techniques, Focus on the most useful segments of POM rather than a comprehensive ones, andLecture, case study (assignment), discussion, and site touring
6、 (speeches given by celebrities of POM) will comprise the total activities of this course.8How to Become A POM Expert? You should have a sound mathematical sense for so many POM problems need to be calculated, You should have a good knowledge of computer science for it is a valuable tool to tackle P
7、OM problems, You should deal with the real problems by using the book knowledge, Last, not least, you should be familiar with the English language because the newly emerged POM techniques are mostly explained in this language.9Operations ManagementIntroduction to Operations ManagementChapter 110Outl
8、ineWHAT IS OPERATIONS MANAGEMENT?THREE ORGANIZATIONAL FUNCTIONSWHY STUDY OM?OPERATIONS DESCISIONSWHAT OPERATIONS MANAGERS DOWHERE ARE THE OM JOBS?11Outline - ContinuedTHE HERITAGE OF OPERATIONS MANAGEMENTOPERATIONS IN THE SERVICE SECTORDifferences between Goods and ServicesGrowth of ServicesEXCITING
9、 NEW TRENDS IN OPERATIONS MANAGEMENT12Learning ObjectivesWhen you complete this chapter, you should be able to :Identify or Define:Operations Management (OM)What operations managers doServices13Learning Objectives - ContinuedWhen you complete this chapter, you should be able to :Describe or Explain:
10、A brief history of operations managementCareer opportunities in operations managementThe future of the discipline14What Is Operations Management?Production is the creation of goods and servicesOperations management is the set of activities that creates value in the form of goods and services by tran
11、sforming inputs into outputs15Types of OperationsOperationsExamplesGoods ProducingFarming, mining, construction,manufacturing, power generationStorage/TransportationWarehousing, trucking, mailservice, moving, taxis, buses,hotels, airlinesExchangeRetailing, wholesaling, banking,renting, leasing, libr
12、ary, loansEntertainmentFilms, radio and television,concerts, recordingCommunicationNewspapers, radio and televisionnewscasts, telephone, satellites16Operations as a SystemTransformation(Conversion)ProcessEnergyMaterialsLaborCapitalInformationGoods orServicesFeedback information forcontrol of process
13、 inputsand process technology17TransformationsPhysical-manufacturingLocational-transportationExchange-retailingStorage-warehousingPhysiological-health careInformational-telecommunications18Food ProcessInputsProcessingOutputsRaw VegetablesCleaningCanned vegetablesMetal SheetsMaking cansWaterCuttingEn
14、ergyCookingLaborPackingBuildingLabelingEquipment19Hospital ProcessInputsProcessingOutputsDoctors, nursesExaminationHealthy patientsHospitalSurgeryMedical SuppliesMonitoringEquipmentMedicationLaboratoriesTherapy20Organizational FunctionsEssential functions:Operations creates the product or serviceMar
15、keting generates demand, Gets customersFinance/accounting tracks organizational performance, pays bills, Obtains funds and Tracks money21Functions - BankOperationsFinance/AccountingMarketingCheckClearingTellerSchedulingTransactionsProcessingSecurityCommercial Bank 1984-1994 T/Maker Co.Example 122Org
16、anizational ChartsCommercial BankOperationsTeller SchedulingCheck ClearingTransactions processingFacilities design/layoutVault operationsMaintenanceSecurityFinanceInvestmentsSecurityReal EstateAccountingAuditingMarketingLoans Commercial Industrial Financial Personal MortgageTrust Department23Functio
17、ns - AirlineOperationsFinance/AccountingMarketingGroundSupportFlightOperationsFacilityMaintenanceCateringAirline 1984-1994 T/Maker Co.Example 224Organizational ChartsAirlineOperationsGround support equipmentMaintenanceGround Operations Facility maintenance Catering Flight Operations Crew scheduling
18、Flying Communications DispatchingManagement scienceFinance & AccountingAccountingPayablesReceivablesGeneral LedgerFinanceCash controlInternational exchange ratesMarketingTraffic administrationReservationsSchedulesTariffs (pricing)SalesAdvertising25Functions - ManufacturerOperationsFinance/Accounting
19、MarketingProductionControlManufacturingQualityControlPurchasingManufacturingExample 326Organizational ChartsManufacturingOperationsFacilities: Construction:maintenanceProduction & inventory control Scheduling: materials controlSupply-chain managementManufacturing Tooling, fabrication,assemblyDesign
20、Product development and design Detailed product specificationsIndustrial engineering Efficient use of machines, space, and personnelProcess analysis Development and installation of production tools and equipmentFinance & AccountingDisbursements/credits Receivables Payables General ledgerFunds Manage
21、ment Money market International exchangeCapital requirements Stock issue Bond issues and recallMarketingSales promotionsAdvertisingSalesMarket research27Identifying Critical Success FactorsDecisionsSample OptionProductCustomized, or standardizedQualityDefine customer expectations and how to achieve
22、themProcessFacility size, technology, capacityLocationNear supplier or customerLayoutWork cells or assembly lineHuman resourceSpecialized or enriched jobsSupply chain Single or multiple source suppliersInventoryWhen to reorder, how much to keep on handScheduleStable or fluctuating productions rateMa
23、intenance Repair as required or preventive maintenanceMarketingServiceDistributionPromotionChannels of distributionProduct positioning (image, functions)Finance/AccountingLeverageCost of capitalWorking capitalReceivablesPayablesFinancial controlLines of creditProduction/Operations28“The manufacturin
24、g business of tomorrow will not be run by financial executives, marketers, or lawyers inexperienced in manufacturing, as so many U.S. companies are today.”Peter DruckerThe Importance of OM in Tomorrow29关注生关注生产环节产环节的管理的管理QualityControlMarketingPOMHRMWorld War1960s s1970s1980s1990s21th CenturyOM Is Be
25、coming A Critical Success Factor in the 21th Century30Why Study OM?OM is one of three major functions (marketing, finance, and operations) of any organization.We want (and need) to know how goods and services are produced.We want to understand what operations managers do.OM is such a costly part of
26、an organization.31Fisher Technologies is a small firm that merely survives in stifling competition in a certain field. In order to be more competitive, Fisher Technologies needs to update its obsolete production equipment by applying a bank loan, so the company is making three optional plans in term
27、 of marketing, financing and production respectively aiming to improve profit, but which one is the most feasible?Case Study32Options for Increasing Contribution33Ten Critical DecisionsService, product designQuality managementProcess, capacity designLocation Layout design Human resources, job design
28、Supply-chain managementInventory management Scheduling Maintenance 34The Critical DecisionsQuality managementWho is responsible for quality?How do we define quality?Service and product designWhat product or service should we offer?How should we design these products and services?35The Critical Decis
29、ions - ContinuedProcess and capacity designWhat processes will these products require and in what order?What equipment and technology is necessary for these processes?LocationWhere should we put the facilityOn what criteria should we base this location decision?36The Critical Decisions - ContinuedLa
30、yout designHow should we arrange the facility?How large a facility is required?Human resources and job designHow do we provide a reasonable work environment?How much can we expect our employees to produce?37The Critical Decisions - ContinuedSupply chain managementShould we make or buy this item?Who
31、are our good suppliers and how many should we have?Inventory, material requirements planning, How much inventory of each item should we have?When do we re-order?38The Critical Decisions - ContinuedIntermediate, short term, and project schedulingIs subcontracting production a good idea?Are we better
32、off keeping people on the payroll during slowdowns?MaintenanceWho is responsible for maintenance?When do we do maintenance?39Responsibilities of Operations ManagementProducts & servicesPlanningCapacityLocationMake or buyLayoutProjectsSchedulingControllingInventoryQualityOrganizingDegree of centraliz
33、ationSubcontractingStaffingHiring/laying offUse of OvertimeDirectingIncentive plansIssuance of work ordersJob assignments40Operations Interfaces with a number of supporting functionsPublic RelationsAccountingIndustrialEngineeringOperationsMaintenancePersonnelPurchasingDistributionMIS41Where are the
34、OM Jobs42Where Are the OM Jobs?Technology/methodsFacilities/space utilizationStrategic issuesResponse timePeople/team developmentCustomer serviceQualityCost reductionInventory reductionProductivity improvement43The Historic Evolution of Operations ManagementPre-industrial revolutionCraft production:
35、 skilled workers, flexible tools, small quantities and customized goodsTraits: production was slow and costly, no economies of scale and thus on stimulant for production expansion.Industrial revolutionA number of innovations changed the face of production:James Watts steam engine (1764), James Hargr
36、eaves spinning jenny (1770) and Edmund Cartwrights power loom (1785).44The Historic Evolution of Operations Management - ContinuedScientific managementBased on observation, measurement, analysis and improvement of work methods, and economic incentives. Until then scientific management turned product
37、ion from “ the rule of thumb” to the “science of management”. Frederick W. Taylor and many other pioneers contributed a lot in this stage.The human relations movementScientific management ignored the human element which was emphasize by a number of psychologists who introduced a series of theories,
38、among them Theory X, Theory Y, and Theory Z are best known.45The Historic Evolution of Operations Management - ContinuedDecision model and management scienceWith the development of mathematics and due to the World War Two, many newly invented techniques were applied for the civilian use and warfare
39、purpose. Especially, with the advent of personal computer this trend was greatly improved and a new branch of management emerged: management science which deal with the problem with mathematical method and computer.The influence of Japanese manufacturersDuring 1970s to now, Japanese manufacturers de
40、veloped or refined management practices which originated from the West and greatly increased the productivity of their operations and the quality of their products and this influence exerts profound impact to their counterparts in the West.46The Heritage of Operations Management47Significant Events
41、in Operations Management48The Heritage of Operations ManagementDivision of labor (Adam Smith 1776 and Charles Babbage 1852)Standardized parts (Whitney 1800)Scientific Management (Taylor 1881)Coordinated assembly line (Ford/Sorenson/Avery 1913)Gantt charts (Gantt 1916)Motion study (Frank and Lillian
42、Gilbreth 1922Quality control (Shewhart 1924; Deming 1950)Computer (Atanasoff 1938)CPM/PERT (DuPont 1957)49The Heritage of Operations Management - ContinuedMaterial requirements planning (Orlicky 1960)Computer aided design (CAD 1970)Flexible manufacturing system (FMS 1975)Baldrige Quality Awards (198
43、0)Computer integrated manufacturing (1990)Globalization(1992)Internet (1995)50Eli WhitneyBorn 1765; died 1825In 1798, received government contract to make 10,000 musketsShowed that machine tools could make standardized parts to exact specificationsMusket parts could be used in any musket 1995 Corel
44、Corp.51Frederick W. TaylorBorn 1856; died 1915Known as father of scientific managementIn 1881, as chief engineer for Midvale Steel, studied how tasks were doneBegan first motion & time studiesCreated efficiency principles 1995 Corel Corp.52Taylor: Management Should Take More Responsibility forMatchi
45、ng employees to right jobProviding the proper trainingProviding proper work methods and toolsEstablishing legitimate incentives for work to be accomplished53Frank & Lillian GilbrethFrank (1868-1924); Lillian (1878-1972)Husband-and-wife engineering teamFurther developed work measurement methodsApplie
46、d efficiency methods to their home & 12 children! (Book & Movie: “Cheaper by the Dozen,” book: “Bells on Their Toes”) 1995 Corel Corp.54Born 1863; died 1947In 1903, created Ford Motor CompanyIn 1913, first used moving assembly line to make Model TUnfinished product moved by conveyor past work statio
47、nPaid workers very well for 1911 ($5/day!)Model T produced in1908 with 514 min. $850 each by hand to 1.19 min. $290 each in 1926 by moving assembly line .Henry Ford Make them all alike! 1995 Corel Corp.Any color as long as its black55W. Edwards DemingBorn 1900; died 1993Engineer & physicistCredited
48、with teaching Japan quality control methods in post-WW2Used statistics to analyze processHis methods involve workers in decisions56Contributions FromHuman factorsIndustrial engineeringManagement scienceBiological sciencePhysical sciencesInformation science 57Significant Events in OMDivision of labor
49、 (Smith, 1776)Standardized parts (Whitney, 1800)Scientific management (Taylor, 1881)Coordinated assembly line (Ford 1913)Gantt charts (Gantt, 1916)Motion study (the Gilbreths, 1922)Quality control (Shewhart, 1924)58Significant Events - ContinuedCPM/PERT (Dupont, 1957) MRP (Orlicky, 1960)CADFlexible
50、manufacturing systems (FMS)Manufacturing automation protocol (MAP)Computer integrated manufacturing (CIM)Unlike other fields of science, POM witnesses significant changes in every 10 years.59Operations in the Service Sector60Service EconomiesProportion of Employment in the Service SectorProportion o
51、f Employment in the Service Sector61Service Is a Major Job Provider in The United State 62Jobs in the U.S63Organizations in Each SectorService SectorExample% of all JobsProfessional services, education, legal, medicalNew York City PS108, Notre Dame University, San Diego Zoo24.3Trade (retail, wholesa
52、le)Walgreens, Wal-Mart, Nordstroms20.6Utilities, transportationPacific Gas & Electric, American Airlines, Santa Fe R.R, Roadway Express7.2(Operations Management by Jay Heizer, Barry Render, 7e) 64Organizations in Each SectorService SectorExample% of all JobsBusiness & Repair ServicesSnelling & Snell
53、ing, Waste Management, Pitney-Bowes7.1Finance, Insurance, Real EstateCiticorp, American Express, Prudential, Aetna, Trammel Crow6.5Food, Lodging, EntertainmentMcDonalds, Hard Rock Caf, Motel 6, Hilton Hotels, Walt Disney Paramount Pictures5.2Public Administration U.S., State of Alabama, Cook County4
54、.565Organizations in Each Sector Manufacturing SectorExample% of all JobsGeneralGeneral Electric, Ford, U.S. Steel, Intel14.8ConstructionBechtel, McDermott7.0AgricultureKing Ranch2.4MiningHomestake Mining0.466Organizations in Each Sector SummarySector% of all JobsService75.4%Manufacturing24.6%671850
55、 75 1900 25 50 75 200040 50 60 701970 75 80 85 90 95 2000PercentUnited StatesCanadaFranceItalyBritainJapanW Germany19702000ServicesIndustryFarming25020015010050080%706050403020100U.S. Employment, % ShareServices as a Percent of GDPU.S. Exports of ServicesIn Billions of DollarsYear 2000 data is estim
56、atedDevelopment of the Service Economy68Characteristics of GoodsTangible productConsistent product definitionProduction usually separate from consumptionCan be inventoriedLow customer interaction 1995 Corel Corp.69Characteristics of ServiceIntangible productProduced & consumed at same timeOften uniq
57、ueHigh customer interactionInconsistent product definitionOften knowledge-basedFrequently dispersed 1995 Corel Corp.70Goods Versus ServicesCan be resoldCan be inventoriedSome aspects of quality measurableSelling is distinct from productionReselling unusualDifficult to inventoryQuality difficult to m
58、easureSelling is part of service GoodsGoods ServiceService71Goods Versus Services - ContinuedProduct is transportableSite of facility important for costOften easy to automateRevenue generated primarily from tangible productProvider, not product is transportableSite of facility important for customer
59、 contactOften difficult to automateRevenue generated primarily from intangible service. GoodsGoodsGoods ServiceServiceService72Key Differences Customer contact Uniformity of input Labor content Uniformity of output Measurement of productivity Quality assuranceThese differences are beginning to fadei
60、n many cases73Goods Contain Services / Services Contain Goods0255075100255075100AutomobileComputerInstalled CarpetingFast-food MealRestaurant MealAuto RepairHospital CareAdvertising AgencyInvestment ManagementConsulting ServiceCounselingPercent of Product that is a GoodPercent of Product that is a S
61、ervice74Steel productionAutomobile fabricationHouse buildingRoad constructionDressmakingFarmingAuto RepairAppliance repairMaid ServiceManual car washTeachingLawn mowingLow service contentHigh goods contentHigh service contentLow goods contentIncreasinggoods contentIncreasingservice contentGoods-serv
62、ice continuum75Changing Challenges for the Operations Manager76Changing Challenges for the Operations Manager77Situation That Operations Face NowadaysGlobalizationEnvironmental Issues Green manufacturingTime-based competition Time and motion study aiming to shorten processing time Improving flexibil
63、ity by reducing the setup time Cutting R&D time by introducing concurrent engineering(CE) Zero time by Agile Management and SCM78New trends in Operations ManagementEmphasis on POM which is a gateway to corporate strategiesBusiness process reengineeringLean productionSupply chain managementAgile mana
64、gement Virtual enterprise, win-win solutionMass customizationE-commerce79The Purchasing Managers Index (PMI)The index is like the Dow Jones Industrials Average, but instead of rise and fall of a set of stocks, the PMI measures the rise and fall of manufacturing in the United States.The index is calc
65、ulated using a set of measures of new manufacturing orders, production volume, supplier deliveries, inventory levels, and employment. The data are collected from a monthly survey conducted by NAPM, the National Association of Purchasing Management.The PMI is a leading indicator of economic activity,
66、 44.5 percent is the threshold, GDP is expanding if above it, and a PMI below 44.5 percent shows that the GDP is generally declining.8081Finally, Id like leave a couple of minutes for you guys to form into several 3-to-5-person groups which are based on individual students consent and each group should contain no more than 5 students.Lets get started!82
