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.
O r g a n iz a tio n

F in a n c e

P r o d u c tio n /O p e r a tio n s

M a r k e tin g

Operations Goals

Productivity

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

Apply reengineering

Recognize environmental issues

Note the rapid growth of services

Competitiveness
Fl
ex
ibi
lity

Price
Quality
Di
ffe

r en

tia
t

io n

Time
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Information Technology
Overview

Performance Criteria
Scope
New Technology
Opportunities

Information Technology
Performance Criteria
Accuracy
Timeliness
Ease of Use
Support of Decision Making
Cost
Scope of Coverage

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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
Cyberspace Savings
Savings
A
AWorld
World Wide
Wide Web
Web Site
Site Offers
Offers These
These
Savings
Savings
Paper
Copying
Phone
Postage
Advertising
Time
Money
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