Management Fundamentals

Concepts, Applications, Skills Development

Operations, Quality, Technology, and Information Control Systems
15 A 

Time-Based Competition
• Strategies to increase the speed of going from creativity to delivery.
15-1 

Operations
I. Classifying Operations Systems II. Designing Operations Systems III. Managing Operations Systems

• Tangibility of products • Customer involvement • Flexibility • Resources and technology

• Product mix and design • Facility layout • Facility location • Capacity planning

• Organizing and leading • Forecasting and scheduling • Inventory control • Materials requirement planning • Quality control

15-2 

Customer Involvement
• Operations are make-to-stock, make-to-order, or assembleto-order.

15-3 

Operations Flexibility
• Products are produced continuously, repetitively, in batches, or individually.
15-4 

Product Mix
• Includes:
– Number of product lines – Products within each line. – Mixture of goods and services within each line.
15-5 

Facilities Layout
Product Layout
Inputs Transformation Transformation Transformation Output

Process or functional layout
Transformation

Inputs ............................ Transformation ............................ Output

Transformation

15-6 

(continued)
Cellular layout

Transformation

Inputs Transformation

Output

Fixed-position layout

Inputs

Output
15-7 

Priority Scheduling
• Continuous evaluation and reordering of the sequence in which products will be produced by using 3 priorities:
– First come-first served – Earliest due date – Shortest operating time

15-8 

Inventory Control
• The process of managing raw materials, workin-process, finished goods, and in-transit goods.
15-9 

Inventory Control within the Systems Process
Inputs Raw Materials Inventory Preliminary Control Transformation Work-in-Process Inventory Concurrent Control Outputs Finished Goods Inventory Rework Control Delivery to Customer In-Transit Inventory Damage Control

Feedback
15-10 

Quality Control
• The process of ensuring that all 4 types of inventory meet standards.
15-11 

1. Put people before things. 2. Always be nice -- no matter how busy you are.

3. Take your time with people.
4. Be polite. Say please, thank you, you’re welcome.

5. Don’t discriminate with your service. 6. Avoid jargon.

6 Rules of Customer Human Relations

15-12 

Statistical Process Control (SPC)
• Aids in determining if quality is within the acceptable standard range.
15-13 

The Information Systems Process
External Environment
Labor Force Shareholders Society Technology Government Economy Customers Competitors Suppliers

Internal Information Department
Inputs Data

Computer Input Devices • Keyboard • Modem • Disk/CD-ROM • Mouse • Scanner • Light Pen • Tape • Other Computers

Computer Storage • RAM • Hard Drive • Disk/CD-ROM • Tape Computer Processor • CPU

Transformation Process Data

Computer Output Devices • Video Monitor • Printer • Modem • Disk/CD-ROM • Tape • Other Computers

Outputs Information

Other Internal Departments
Marketing Operations Finance Human Resources Other

15-14 

Transaction processing
3 Types of Information Systems

Management information

Decision support
15-15 

Information Network
Remote facilities/Telecommuters

Customers

Headquarters Facility

Suppliers

Databases

15-16