Chapter 1

Introduction to Operations Management

Production and Operations Management

Definition:

Managing the activities involved in converting inputs into outputs

• raw materials finished goods• labor resource service

Operations Management Issues

Forecasting

-- sales, staff levels, highway accidents

Process Planning

-- type, flexibility, product cost/unit, automation

Facility Location

-- country, region, city, site; important factors

Facility Layout

-- production & storage areas, flows, parking

Operations Management Issues

Capacity Planning-- size of facilities, machines, & labor force

Production Planning-- product mix & volume, resources required

Materials Management• Purchasing

-- how many suppliers & which ones• Logistics

-- physical distribution, moving materials• Warehousing

-- size, location, & layout of storage

Operations Management Issues

Quality Control

-- measuring, monitoring, & improving; SQC

Shop Floor Control

-- monitoring & controlling progress of jobs

Scheduling

-- production and employees

Inventory Control

-- how much & when to order

Operations Management Issues

Employee Productivity

-- measuring & designing tasks; learning rates

Project Management

-- planning, monitoring, & controlling

Maintenance Management

-- repairs vs. preventive maintenance

Operations Strategic Planning

BusinessStrategy

OperationsStrategy

FacilityLocation

ProcessPlanning

CapacityPlanning

FacilityLayout

Routine Operations Planning

Forecasting

ProductionPlanning

MaterialsManagement Scheduling

-- Purchasing-- Warehousing-- Logistics

-- Production-- Employees

Operations Control

QualityControl

InventoryControl

Shop FloorControl

MaintenanceManagement

ProjectManagement

Which POM issues are most important to:

-- UTA

-- Alcon

-- Dallas Area Rapid Transit (DART)

-- Cook Children’s Medical Center

-- H&R Block