Managing Operations
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Transcript of Managing Operations
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 1
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 2
•Explain the role of operations management•Define the nature and purpose of value chain management•Describe how value chain management is done•Discuss contemporary issues in managing operations
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 3
The Role of Operations Management
• Operations management - the transformation process that converts resources into finished goods and services.
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 4
Managing Productivity
• Productivity
– The overall output of goods or services produced divided by the inputs needed to generate that output
– A composite of people and operations variables
• Benefits of Increased Productivity
– Economic growth and development
– Higher wages and profits without inflation
– Increased competitive capability due to lower costs
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 5
Services and Manufacturing
• Manufacturing organizations - organizations that produce physical goods.
• Service organizations - organizations that produce nonphysical products in the form of services.
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 6
Exhibit 19-1: The Operations System
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 7
Strategic Role of Operations Management• The era of modern manufacturing began in the U.S. over 100
years ago.
• After WWII, U.S. manufacturers focused on functional areas other than manufacturing.
• By the 1970’s, foreign competitors integrated manufacturing technologies and were producing quality goods at lower costs.
• U.S manufacturers responded by investing in updated technology, restructuring organizations, and including production requirements in their strategic planning.
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 8
Managing Operations Using ValueChain Management• Value - the performance characteristics,
features, attributes, and any other aspects of goods and services for which customers are willing to give up resources.
• Value chain - the entire series of organizational work activities that add value at each step from raw materials to finished product.
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 9
Managing Operations Using ValueChain Management• Value chain
management - the process of managing the sequence of activities and information along the entire value chain.
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 10
Value Chain Management
• Requirements for Value Chain Management– A new business model incorporating:
• Coordination and collaboration
• Investment in information technology
• Changes in organizational processes
• Committed leadership
• Flexible jobs and adaptable, capable employees
• A supportive organizational culture and attitudes
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 11
Value Chain Strategy
• Organizational processes - the ways that organizational work is done.
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Exhibit 19-2: Value Chain StrategyRequirements
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 13
Obstacles to Value Chain Management
– Organizational barriers• Refusal or reluctance to share information• Reluctance to shake up the status quo• Security issues
– Cultural attitudes• Lack of trust and too much trust• Fear of loss of decision-making power
– Required capabilities• Lacking or failing to develop the requisite value chain
management skills
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Obstacles to Value Chain Management (cont.)
– People
• Lacking commitment to do whatever it takes
• Refusing to be flexible in meeting the demands of a changing situation
• Not being motivated to perform at a high level
• Lack of trained managers to lead value chain initiatives
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Exhibit 19-3: Obstacles to Value ChainManagement
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 16
Current Issues in Managing Operations
• Technology’s Role in Manufacturing– Increased automation and integration of
production facilities with business systems to control costs
• Predictive maintenance, remote diagnostics, and utility cost savings
• Quality - the ability of a product or service to reliably do what it’s supposed to do and to satisfy customer expectations
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 17
Current Issues in Managing Operations
• Quality Initiatives
– Planning for quality
– Organizing and leading for quality
– Controlling for quality
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 18
Quality Goals
• ISO 9000 - a series of international quality management standards that set uniform guidelines for processes to ensure that products conform to customer requirements.
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Quality Goals (cont.)
• Six Sigma - a quality program designed to reduce defects, help lower costs, save time, and improve customer satisfaction.
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Mass Customization and Lean Organization
• Mass customization - providing customers with a product when, where, and how they want it.
• Lean organization - an organization that understands what customers want, identifies customer value by analyzing all activities required to produce products, and then optimizes the entire process from the customer’s perspective.
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 19- 21
Terms to Know• operations management• manufacturing organizations• service organizations• productivity• value• value chain• value chain management• organizational processes• RFID• intellectual property• quality• ISO 9000• Six Sigma• mass customization• Cellular manufacturing
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