C1 Introduction PDF

C1.
Introduction
Instructor: MBA. Nguyen Danh Ha Thai. Email: thaindh@hcmute.edu.vn
Office: A1-307 Zalo: 0906 613 813
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thaindh@hcmute.edu.vn
Case study - IKEA
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Case study - IKEA
• Group 1: The Operation Process of IKEA?
• Group 2: What are and how to solve “bottlenecks”?
• Group 3: Describe a Operation Manager?
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The Operations Function
Activities in operations management (OM) include organizing work, selecting

processes, arranging layouts, locating facilities, designing jobs, measuring
performance, controlling quality, scheduling work, managing inventory, and
planning production. Operations managers deal with people, technology, and
deadlines. These managers need good technical, conceptual, and behavioral
skills. Their activities are closely intertwined with other functional areas of a
firm.
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Bottleneck
Cars wait Automatic car Cars wait Interior Clean

to be Wash Interior cleaning center cars wait
washed machines cleaning (ICC) to be
Cars
arrive picked
up
Cyle time: Cyle time:
2.5 min 6/n min
Cyle time: Cyle time:

2.5 min 6/n min
Work center cycle time 1.25 min Work center cycle time 3/n min
Note: n = number of workers

in each ICC; 1≤ n ≤ 3
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Operations as
the Technical
Core
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Core
R&D HRM MIS
Functions
Of
Operations
any
organization
F/A Marketing
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Milestones
Early concepts
1775-1880 Customization
Cost Focus Quality Focus Focus
Labor specification
(Smith, Babbage)
Lean Production Era Masscustomization Era
1980-1995 1995-2005
Standardized Parts
(Whitney)
Moving Assembly Line JIT Globalization
Scientific (Ford/Sorensen) Internet
Management Era Statistical sampling Computer Aided Design ERP
1880-1910 (Shewhart)
Electronic Data Learning Organizaion
Gantt Charts Economic Order Interchange
Motion and Time Quantity (Harris) International Quality
Studies (Gilbreth) TQM Standards
Linear Programming
Process Analysis (Dantzig) Pert/CPM Baldrige Award Finite Scheduling
(Taylor) (Dupon)
Empowerment SCM
Queuing Theory Material Requirements
(Erlang) Planning Kanbans Agile Manufacturing
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The Green
Revolution is the
next era in OM.
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Definition
Operations:
A function or system that transforms inputs into outputs of
greater value.
Operations management:
The design, operation, and improvement of productive
systems.
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OM’s Transformation Process
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Canned Food Processor
Inputs Processing Outputs
• Raw
vegetables
• Cleaning
• Metal
• Making cans
sheets
• Cutting • Canned
• Water
• Cooking vegetables
• Energy
• Packing
• Labor
• Labeling
• Building
• Equipment
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Hospital
• Doctors,
nurses • Examination
• Hospital • Surgery
• Healthy
• Medical • Monitoring
patients
supplies • Medication
• Equipment • Therapy
• Laboratories
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Time for Teams
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Transformation Role
• To add value
- Increase product value at each stage
- Value added is the net increase between output
product value and input material value.
• Provide an efficient transformation

- Efficiency – means performing activities well
for least possible cost.
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OM’s Transformation Process
Efficiency =
Resources expected Effectiveness =
to be consumed / Actual output /
Resources actually Expected output
consumed
Input
Transformation Output
Process
Productivity
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Productivity and Competitiveness
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Osborne Industries is compiling the monthly productivity report for its Board of Directors.
From the following data, calculate (a) labor productivity, (b) machine productivity, and (c)
the multifactor productivity of dollars spent on labor, machine, materials, and energy. The
average labor rate is $15 an hour, and the average machine usage rate is $10 an hour.
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OM Decision Types
Type of dicision Operations Management Topic
Strategic • Operations Strategy
• Product Design and Process Selection
• SCM
• TQM
• JIT and Lean Systems
• Forecasting
• Capacity planning and Location Analysis
• Facility Layout
• Work System Design
• Inventory and Resource Planning
Tactical • Scheduling Issuses
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The 4 V’s Model
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The 4 V’s Model
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The implications of the 4 V’s of operations processes
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The 4 V’s Model
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Teams work
Group chooses 2 competing products between 2 different

companies. Then, analyzing 4V’s to find out the differences.
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THANKS!
Any questions?
You can find me at:
▸ Zalo: 0906 613 813
▸ thaindh@hcmute.edu.vn
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C1.

• Group 1: The Operation Process of IKEA?

• Group 2: What are and how to solve “bottlenecks”?

• Group 3: Describe a Operation Manager?

Activities in operations management (OM) include organizing work, selecting

Cars wait Automatic car Cars wait Interior Clean

Cyle time: Cyle time:

Note: n = number of workers

• Provide an efficient transformation

Group chooses 2 competing products between 2 different

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