Production and Operations Management Overview

Operations

Function Operations Objectives Operations Decisions World Class Principles Competitiveness

Operations Function
The

Operations function consists of all activities directly related to producing goods or providing services.
Organization

Finance

Production/Operations

Marketing

Operations Goals
Productivity

Outputs Productivity = Inputs

Quality=Customers Perception

Operations Decisions
System

Design

capacity location arrangement of departments product and service planning acquisition and placement of equipment

More Operations Decisions

System

operation

personnel inventory scheduling project management quality assurance

World Class Principles

Continuous

improvement (Kaizen) Recognize global competition Simultaneously pursue quality and efficiency Total quality management (TQM) Increased flexibility Variance Reduction Operation time reduction Lead time reduction

More World Class Principles

Use

advanced technology

Involve

workers in decision making and organization rewards reengineering

Apply

Recognize
Note

environmental issues

the rapid growth of services

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Competitiveness

Price Quality

Time
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Information Technology Overview

Performance Scope New

Criteria

Technology Opportunities

Information Technology Performance Criteria

Accuracy
Timeliness Ease

of Use Support of Decision Making Cost Scope of Coverage

10

Scope of Coverage
Support

all organizational functions Supporting organizations such as vendors through Electronic Data Interchange (EDI)

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New Technology Opportunities

Data

Warehousing Data Mining Internet/World Wide Web Wireless Communication Paperless Office Electronic Data Interchange

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Cyberspace Savings
A World Wide Web Site Offers These Savings
Paper Copying Phone Postage

Advertising
Time Money
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