Production Operations Management
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Transcript of Production Operations Management
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Production Operations Production Operations ManagementManagement
Introduction to POMU. Akinc
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POMPOM Productivity
– What is it to POM?– What is it to a Company?– What does it Mean to You?
Production/ Operations Management– What?– Who?
Business Strategy and Operations Management
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ProductivityProductivity
Definition: Economic output per unit of inputProductivity = Output/Input (resource)
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US. Productivity TrendsUS. Productivity Trends
600% since 1900 2.6% between 1945 - 1973 1.2% between 1973 - 1980 1.0% between 1980 – 1990 2.5% after 1990
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Recent US Productivity ChangesRecent US Productivity ChangesSeries Id: PRS84006093 Duration: index, 1992 = 100 Measure: Output Per Hour Sector: Business
Year 1 2 3 4 Annual change 1993 100.3 100.1 100.2 101.2 100.5 0.50% 1994 101.6 101.7 101.4 102.1 101.7 1.19% 1995 101.8 102.1 102.2 103.1 102.3 0.59% 1996 104.2 105.3 105.3 105.7 105.1 2.74% 1997 106.1 107.1 108.1 108.3 107.4 2.19% 1998 109.6 109.6 110.2 111.5 110.2 2.61% 1999 112.3 112.1 113.1 114.7 113 2.54% 2000 114.8 116.6 116.8 117.5 116.5 3.10% 2001 117.4 117.8 118.8 121.3 118.8 1.97% 2002 123 .9 124.1 125 .9 126.4 125 .1 5.3 0% 2003 125.8 128.0 130.8 130.3 128.7 2.88% 2004 131.4 132.8 133.0 133.5 132.7 3.11% 2005 134.4 134.3 135.9 135.5 135.0 1.73% 2006 136.4 136.6 136.1 36.5 136.4 1.04% 2007 136.6 137.5
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Productivity TrendsProductivity Trends
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International ComparisonsInternational Comparisons
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International ComparisonsInternational Comparisons
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Pressures on Productivity:Pressures on Productivity:
Why Does Productivity Have to Grow? Aging Population
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Pressures on Productivity:Pressures on Productivity:
Why Does Productivity Have to Grow? Aging Population
Environmental Demands
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Pressures on Productivity:Pressures on Productivity:
Why Does Productivity Have to Grow? Aging Population
Environmental Demands
Global Competition
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Pressures on Productivity:Pressures on Productivity:
Why Does Productivity Have to Grow? Aging Population
Environmental Demands
Global Competition
Social Pressures
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Sources of productivity?Sources of productivity?
Where does productivity come from? Capital Technology Better Management of Resources: Specialization
Macro (Organizational) Micro
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Organizational GoalsOrganizational Goals
Why do organizations exist? An alliance of at least
– Labor– Management– Stockholders
Organizational Goals
Productive use of resources
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OperationsOperations
Activities that organizations perform to achieve their goals.
Definition:Activities aimed at bringing about goal
oriented changes by designing and using processes.
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ProcessesProcesses
Any set of activities that use resources, transform and add value to deliver one or more outputs to its customers.
Processes can be nested.. A process may include one or more sub processes
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Porter’s Value ChainPorter’s Value Chain
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Domain of POM (WHAT?)Domain of POM (WHAT?)
Determining the Desired Outputs Determining the Necessary Inputs Determining the Technology Necessary Planning and Controlling the
– quality– availability– cost of Work Processes and Their Results
Delivery and Distribution of the Output
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POM DecisionsPOM Decisions
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The Professionals (WHO?)The Professionals (WHO?)
V P -M a rk e tin g
P ro d u c tio nS ch ed u lin g
P u r ch a s in g S to ckC o n tro l
S h ip p in ga n d rece iv in g
M a ter ia lsM a n a g er
Q u a lityC o n tro l
M a n u fa ctu r in gM a n a g er
M a in ten a n ceE n g in eer
P erso n n e ll
P la n tM a n a g er (s )
V P -O p er a t io n s
V P -F in a n ce
C E O
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WHAT? DesignWHAT? DesignMany of the design functions are strategic Facilities design
– Locations– Sizes– Layouts– Equipment– Transportation means
Product/Product Line Management Systems
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WHAT? PlanningWHAT? PlanningDetermining the ways in which the
productive facility will be used
Demand Forecasting Production Planning Material Requirements Planning Inventory Planning Staffing Needs Equipment Needs
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WHAT? SchedulingWHAT? SchedulingDetermining the time and the resources with
which the tasks will be performed.Examples: Assignment of specific customer orders to
individual machines or individuals Assignment of workers to work centers Sequencing of work Vehicle Dispatching
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WHAT? ControlWHAT? ControlDetermining the degree of match between
actual and planned outcomesExamples:
Quality Control – Conformance– Design
Materials Control (Inventory Control) Equipment Control (Maintenance) Cost Control (Variance Analysis)