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Introduction To Operations and Logistics Management
Introduction To Operations and Logistics Management
MANAGEMENT
Introduction
Importance
Scope
Trends
Careers
Course Overview
Philip A. Vaccaro
Operations
Management
DEFINITION
The competent and adept management
of complex systems in the service, nonprofit, manufacturing, and government
sectors via the effective and efficient
utilization of time, labor, money, and
materials in the generation of goods
and/or services.
Overview
Operations Management plans for, and creates the
competitive advantages that all businesses need
for fueling profitable growth. As a result, OM is
the most critical of the business functions.
Studying OM means studying modern planning,
decision-making and management methods in all
functional areas of an organization, including
strategic and tactical planning, products and services
development, product and project management,
process and supply chain management, and more.
The
THE
Strategic
STRATEGIC
Triad
TRIAD
PRODUCTION
FINANCE
Maintenance
Facilities and Equipment
Worker training
Cost and Quality Control
Planning and Scheduling
Operations research
Statistics
Information systems
Economics
Logistics / Transportation
Mathematics
Accounting / Finance
Computer science
Engineering
Manufacturing
What OM Managers Do
What OM Managers Do
Develop, monitor, and
update measures of
efficiency.
Develop, monitor, and
change operating plans
and schedules.
Control costs and quality.
What OM Managers Do
OM Necessary Skills
Global Focus
Cost of capital
puts pressure
on the reduction
of inventory
investment
Just-in-Time
Shipments
Supply Chain
Partners
Rapid Product
Development
Mass
Customization
Changing socio-culture
milieu.
An increasingly
knowledge and
information based
society.
Empowered
Employees,
Teams, and Lean
Production
Career Possibilities
Business Executive
Blue-Collar Supervisor
Construction Manager
Production Manager
Operations Manager
Information System
Manager
Materials Manager
Project Manager
Customer Service Mgr
Defense Analyst
Purchasing Agent
Inventory Analyst
Cost Estimator
Systems Analyst
Industrial Engineer
Quality Control Mgr
Time & Motion Analyst
Operations Scheduler
Operations Planner
Process Improvement
Manager
Career Possibilities
In corporations, OM managers are responsible for developing
new products and services, the strategic and tactical plans,
and the execution of, and realization of the plans.
Demand for OM concentrators is particularly high in
financial services, IT, manufacturing, non-profit,
government, education, and health care.
Entrepreneurs will find OM knowledge pivotal.
The advancement opportunities are superior and may lead
all the way to the organizations senior leadership.
2. QUALITY MANAGEMENT
Who is responsible for quality?
How do we define the quality we want
in our services and products?
4. LOCATION
Where should we put the facility?
On what criteria should we base the
location decision?
5. LAYOUT DESIGN
How should we arrange the facility?
How large must the facility be to meet
our plan?
10. MAINTENANCE
Who is responsible for maintenance?
When do we perform maintenance?
What are the effects of a maintenance
program on productivity and efficiency?
OPERATIONS MANAGEMENT
OPERATIONS
MANAGEMENT
A Brief History
Applied Management Science for Decision Making, 1e 2012 Pearson Prentice-Hall, Inc.
Philip A. V
1776
1900
1900
1940
1950s
1980s
1970s
Manufacturing becomes
the second major
functional area of business
to utilize the computer.
Applications include
machine movement
control, equipment &
material monitoring,
and the continuous
adjustment of settings
and flow rates.
Mission / Strategy
Relationship
Corporate Mission and Goals
Corporate Strategy
External Factors
Internal Factors
Functional Strategies
Operations,
Marketing, Finance
Strategy Implementation
and
Performance Measurement
Data Input
and
Feedback
Functional Strategies
Operations Functional
Strategy
It must delineate the tasks that the operations
function must do well in order to support and
achieve the corporate strategy.
Almost any operations task can be used to support a firms strategy but most firms can compete
very effectively by emphasizing one or two.
The operations functional strategy should be consistent with the marketing and finance strategies,
as well.
Operations Functional
Strategy
Operations Functional
Strategy Checklist
1. QUALITY
- customer expectations
- quality systems design
- quality measures and standards
2. PRODUCT
- customized
- standardized
Operations Functional
Strategy Checklist
3. SUPPLY CHAIN
- sole or multiple vendors
- type of distribution system
4. LABOR
- specialized skills
- multiple skills
Operations Functional
Strategy Checklist
5. MAINTENANCE
- as needed
- preventitive
6. LAYOUT
- assembly line
- work cells
- project
Operations Functional
Strategy Checklist
7. INVENTORY
- ordering policy
- stockage levels
- type of system
8. PROCESS
- scale of operation
- choice of technology
- in-house production
- outsourcing
Operations Functional
Strategy Checklist
9. SCHEDULING
- stable
- variable
10. LOCATION
- near supplier
- near customer
The Dynamics of
Strategy
Strategies change over time due to two reasons:
1. changes within the organization.
2. changes in the environment.
The Dynamics of
Strategy
Sales + Revenues
Birth
Growth
Maturity
THE PRODUCT LIFE CYCLE
Decline
CORPORATE
STRATEGY
OPERATIONS
STRATEGY
Birth
INCREASE MARKET
SHARE, R+D, ENGRG
FREQUENT PRODUCT
AND PROCESS DESIGN
CHANGES, QUALITY
FOCUS, SHORT
PRODUCTION RUNS
Growth
STRENGTHEN HOLD ON
MARKET SEGMENT VIA
PRICING AND QUALITY
IMAGE
Maturity
PRODUCT STANDARDIZATION
MINOR PRODUCT CHANGES
LONG PRODUCTION RUNS
INCREASE PROCESS STABILITY
Decline
REDUCE CAPACITY
ELIMINATE POOR PROFIT MAKES + MODELS
COST MINIMIZATION
LITTLE PRODUCT DIFFERENTIATION
INTRODUCTION TO
OPERATIONS
MANAGEMENT
Applied Management Science for Decision Making, 1e 2012 Pearson Prentice-Hall, Inc.
Philip A. V
EPILOGUE
Applied Management Science for Decision Making, 1e 2012 Pearson Prentice-Hall, Inc.
Philip A. V
Decision Theory
Basic Simulation
Queuing Theory
Manufacturing Processes
Service Processes
Transportation Algorithm
Line Balancing
Work Measurement
Time Standards
Learning Curve
Just-in-Time Systems
Inventory Control
Short-term Scheduling
Assignment Algorithm
Project Management
Linear Programming
Decoupling Theory
Outsourcing / Offshoring
Telecommunications
Yield Management
Process Opportunities
Experiential Blueprinting
Sensitivity Analysis
Project Crashing
Resource Leveling
Duality
Goal Programming
Integer Programming
Dynamic Programming
Optimization Theory
Quantitative EXCEL programming
Survey Information
Utility Theory
Complex Simulation
Service Systems Theory
Global Operations
Logistics
Supply Chain Management
E-commerce
Solutions to the
Dilemma
APPLY YOUR
DEGREE CREDITS
TOWARD A
2nd DEGREE
IN
ODS or MIS
Solutions to the
Dilemma
Earn an MBA or
MS in:
- Decision Sciences
- Operations Research
- Operations
Management
- Logistics
- Industrial engineering
- Materials Management
- Transportation
- Management Science
- Decision Support Systems
Solutions to the
Dilemma
Earn a certificate or certification in:
Operations and
Logistics Management
Thank you !
Come again !
Applied Management Science for Decision Making, 1e 2012 Pearson Prentice-Hall, Inc.
Philip A. V