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Management Fundamentals

Concepts, Applications, Skills Development

Operations, Quality, Technology, and Information Control Systems
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Time-Based Competition
• Strategies to increase the speed of going from creativity to delivery.
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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

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

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Operations Flexibility
• Products are produced continuously, repetitively, in batches, or individually.
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Product Mix
• Includes:
– Number of product lines – Products within each line. – Mixture of goods and services within each line.
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Facilities Layout
Product Layout
Inputs Transformation Transformation Transformation Output

Process or functional layout
Transformation

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

Transformation

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(continued)
Cellular layout

Transformation

Inputs Transformation

Output

Fixed-position layout

Inputs

Output
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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

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Inventory Control
• The process of managing raw materials, workin-process, finished goods, and in-transit goods.
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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
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Quality Control
• The process of ensuring that all 4 types of inventory meet standards.
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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

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

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Transaction processing
3 Types of Information Systems

Management information

Decision support
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Information Network
Remote facilities/Telecommuters

Customers

Headquarters Facility

Suppliers

Databases

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