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1、Operations Management运营管理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 be barred from
2、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.Besides,Id like you to tr
3、eat 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 Advantage Richard B.Chase,Nicholas J.Aqui
4、lano,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 This Course Focus on birds-eye view of POM rather t
5、han 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(speeches given by celebrities of POM)will comprise the
6、 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 POM problems,You should deal with the real problems by using
7、 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 110OutlineWHAT IS OPERATIONS MANAGEMENT?THREE ORGANIZATIONAL FUNCTIONS
8、WHY 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 NEW TRENDS IN OPERATIONS MANAGEMENT12Learning ObjectivesWhen you
9、 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:A brief history of operations managementCareer opportunities in operatio
10、ns 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 transforming inputs into outputs15Types of OperationsOperationsExamplesGoods
11、 ProducingFarming,mining,construction,manufacturing,power generationStorage/TransportationWarehousing,trucking,mailservice,moving,taxis,buses,hotels,airlinesExchangeRetailing,wholesaling,banking,renting,leasing,library,loansEntertainmentFilms,radio and television,concerts,recordingCommunicationNewsp
12、apers,radio and televisionnewscasts,telephone,satellites16Operations as a SystemTransformation(Conversion)ProcessEnergyMaterialsLaborCapitalInformationGoods orServicesFeedback information forcontrol of process inputsand process technology17TransformationsPhysical-manufacturingLocational-transportati
13、onExchange-retailingStorage-warehousingPhysiological-health careInformational-telecommunications18Food ProcessInputsProcessingOutputsRaw VegetablesCleaningCanned vegetablesMetal SheetsMaking cansWaterCuttingEnergyCookingLaborPackingBuildingLabelingEquipment19Hospital ProcessInputsProcessingOutputsDo
14、ctors,nursesExaminationHealthy patientsHospitalSurgeryMedical SuppliesMonitoringEquipmentMedicationLaboratoriesTherapy20Organizational FunctionsEssential functions:Operations creates the product or serviceMarketing generates demand,Gets customersFinance/accounting tracks organizational performance,p
15、ays bills,Obtains funds and Tracks money21Functions-BankOperationsFinance/AccountingMarketingCheckClearingTellerSchedulingTransactionsProcessingSecurityCommercial Bank 1984-1994 T/Maker Co.Example 122Organizational ChartsCommercial BankOperationsTeller SchedulingCheck ClearingTransactions processing
16、Facilities design/layoutVault operationsMaintenanceSecurityFinanceInvestmentsSecurityReal EstateAccountingAuditingMarketingLoans Commercial Industrial Financial Personal MortgageTrust Department23Functions-AirlineOperationsFinance/AccountingMarketingGroundSupportFlightOperationsFacilityMaintenanceCa
17、teringAirline 1984-1994 T/Maker Co.Example 224Organizational ChartsAirlineOperationsGround support equipmentMaintenanceGround Operations Facility maintenance Catering Flight Operations Crew scheduling Flying Communications DispatchingManagement scienceFinance&AccountingAccountingPayablesReceivablesG
18、eneral LedgerFinanceCash controlInternational exchange ratesMarketingTraffic administrationReservationsSchedulesTariffs(pricing)SalesAdvertising25Functions-ManufacturerOperationsFinance/AccountingMarketingProductionControlManufacturingQualityControlPurchasingManufacturingExample 326Organizational Ch
19、artsManufacturingOperationsFacilities:Construction:maintenanceProduction&inventory control Scheduling:materials controlSupply-chain managementManufacturing Tooling,fabrication,assemblyDesign Product development and design Detailed product specificationsIndustrial engineering Efficient use of machine
20、s,space,and personnelProcess analysis Development and installation of production tools and equipmentFinance&AccountingDisbursements/credits Receivables Payables General ledgerFunds Management Money market International exchangeCapital requirements Stock issue Bond issues and recallMarketingSales pro
21、motionsAdvertisingSalesMarket research27Identifying Critical Success FactorsDecisionsSample OptionProductCustomized,or standardizedQualityDefine customer expectations and how to achieve themProcessFacility size,technology,capacityLocationNear supplier or customerLayoutWork cells or assembly lineHuma
22、n resourceSpecialized or enriched jobsSupply chain Single or multiple source suppliersInventoryWhen to reorder,how much to keep on handScheduleStable or fluctuating productions rateMaintenance Repair as required or preventive maintenanceMarketingServiceDistributionPromotionChannels of distributionPr
23、oduct positioning(image,functions)Finance/AccountingLeverageCost of capitalWorking capitalReceivablesPayablesFinancial controlLines of creditProduction/Operations28“The manufacturing business of tomorrow will not be run by financial executives,marketers,or lawyers inexperienced in manufacturing,as s
24、o 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 Becoming A Critical Success Factor in the 21th Century30Why Study OM?OM is one of three major functions(marketing,finance,and
25、 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 an organization.31Fisher Technologies is a small firm that merely survives in stifling competition in a certain field.In order to
26、 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 of marketing,financing and production respectively aiming to improve profit,but which one is the most feasible?Case Study32Options
27、for Increasing Contribution33Ten Critical DecisionsService,product designQuality managementProcess,capacity designLocation Layout design Human resources,job designSupply-chain managementInventory management Scheduling Maintenance 34The Critical DecisionsQuality managementWho is responsible for quali
28、ty?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 Decisions-ContinuedProcess and capacity designWhat processes will these products require and in what order?What equipment and technology is ne
29、cessary for these processes?LocationWhere should we put the facilityOn what criteria should we base this location decision?36The Critical Decisions-ContinuedLayout designHow should we arrange the facility?How large a facility is required?Human resources and job designHow do we provide a reasonable w
30、ork environment?How much can we expect our employees to produce?37The Critical Decisions-ContinuedSupply chain managementShould we make or buy this item?Who are our good suppliers and how many should we have?Inventory,material requirements planning,How much inventory of each item should we have?When
31、 do we re-order?38The Critical Decisions-ContinuedIntermediate,short term,and project schedulingIs subcontracting production a good idea?Are we better off keeping people on the payroll during slowdowns?MaintenanceWho is responsible for maintenance?When do we do maintenance?39Responsibilities of Oper
32、ations ManagementProducts&servicesPlanningCapacityLocationMake or buyLayoutProjectsSchedulingControllingInventoryQualityOrganizingDegree of centralizationSubcontractingStaffingHiring/laying offUse of OvertimeDirectingIncentive plansIssuance of work ordersJob assignments40Operations Interfaces with a
33、 number of supporting functionsPublic RelationsAccountingIndustrialEngineeringOperationsMaintenancePersonnelPurchasingDistributionMIS41Where are the OM Jobs42Where Are the OM Jobs?Technology/methodsFacilities/space utilizationStrategic issuesResponse timePeople/team developmentCustomer serviceQualit
34、yCost reductionInventory reductionProductivity improvement43The Historic Evolution of Operations ManagementPre-industrial revolutionCraft production:skilled workers,flexible tools,small quantities and customized goodsTraits:production was slow and costly,no economies of scale and thus on stimulant f
35、or production expansion.Industrial revolutionA number of innovations changed the face of production:James Watts steam engine(1764),James Hargreaves spinning jenny(1770)and Edmund Cartwrights power loom(1785).44The Historic Evolution of Operations Management-ContinuedScientific managementBased on obs
36、ervation,measurement,analysis and improvement of work methods,and economic incentives.Until then scientific management turned production 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 movementScienti
37、fic management ignored the human element which was emphasize by a number of psychologists who introduced a series of theories,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
38、of mathematics and due to the World War Two,many newly invented techniques were applied for the civilian use and warfare 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
39、mathematical method and computer.The influence of Japanese manufacturersDuring 1970s to now,Japanese manufacturers developed 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
40、exerts profound impact to their counterparts in the West.46The Heritage of Operations Management47Significant Events in Operations Management48The Heritage of Operations ManagementDivision of labor(Adam Smith 1776 and Charles Babbage 1852)Standardized parts(Whitney 1800)Scientific Management(Taylor
41、1881)Coordinated assembly line(Ford/Sorenson/Avery 1913)Gantt charts(Gantt 1916)Motion study(Frank and Lillian Gilbreth 1922Quality control(Shewhart 1924;Deming 1950)Computer(Atanasoff 1938)CPM/PERT(DuPont 1957)49The Heritage of Operations Management-ContinuedMaterial requirements planning(Orlicky 1
42、960)Computer aided design(CAD 1970)Flexible manufacturing system(FMS 1975)Baldrige Quality Awards(1980)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 ma
43、ke standardized parts to exact specificationsMusket parts could be used in any musket 1995 Corel 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 efficienc
44、y principles 1995 Corel Corp.52Taylor:Management Should Take More Responsibility forMatching employees to right jobProviding the proper trainingProviding proper work methods and toolsEstablishing legitimate incentives for work to be accomplished53Frank&Lillian GilbrethFrank(1868-1924);Lillian(1878-1
45、972)Husband-and-wife engineering teamFurther developed work measurement methodsApplied 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
46、line to make Model TUnfinished product moved by conveyor past work stationPaid 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 black
47、55W.Edwards DemingBorn 1900;died 1993Engineer&physicistCredited with teaching Japan quality control methods in post-WW2Used statistics to analyze processHis methods involve workers in decisions56Contributions FromHuman factorsIndustrial engineeringManagement scienceBiological sciencePhysical science
48、sInformation science 57Significant Events in OMDivision of labor(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/PE
49、RT(Dupont,1957)MRP (Orlicky,1960)CADFlexible 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 Emp
50、loyment in the Service SectorProportion of 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