MANAGEMENT: A GLOBAL AND ENTREPRENEURIAL PERSPECTIVE by Weihrich, Cannice, and Koontz

20
Productivity, Operations Management, and Total Quality Management
© 2008 Weihrich and Cannice

Chapter

Chapter 20. Productivity, Operations Management, and Total Quality Management

1

The tools and techniques for improving productivity. The operations management system. Production and operations management as an applied case of managerial planning and control. 3. 5. 4. 6.After studying this chapter. Productivity. and Total Quality Management 2 . © 2008 Weihrich and Cannice Chapter 20. The difference between supply chain management and value chain management. 2. you should understand: 1. Operations Management. The nature of productivity issues and ways to improve effectiveness and efficiency. the nature of a variety of techniques for improving quality. The importance of quality. and lean manufacturing.

© 2008 Weihrich and Cannice Chapter 20. Productivity.What is Productivity? • Productivity is the output-input ratio within a time period with due consideration for quality. Operations Management. and Total Quality Management 3 .

• Operations management deals with activities necessary to produce and deliver a service as well as a physical product.Production and Operations Management: Manufacturing and Service • Production management deals with those activities necessary to manufacture products. © 2008 Weihrich and Cannice Chapter 20. Productivity. and Total Quality Management 4 . Operations Management.

Productivity.Fig. 20-1 Operations Management System © 2008 Weihrich and Cannice Chapter 20. and Total Quality Management 5 . Operations Management.

and Total Quality Management 6 . taking into consideration reliability.an Illustration 1.Steps in Product and Production Design . Productivity. and simulating the processes to see if they work. including data from market and economic analyses. Select the process for producing the product. Operations Management. prepare the layout of the facilities to be used. quality. Prepare a preliminary design by evaluating various alternatives. 2. 7. testing. and make a general feasibility study. 6. © 2008 Weihrich and Cannice Chapter 20. Create product ideas by examining consumer needs and screening the various alternatives. After the product is designed. and schedule the various tasks that must be done. 5. Decide whether the enterprise's current facilities are adequate or if new or modified facilities are required. and maintenance requirements. Reach a final decision by developing. 4. plan the system of production. Select the product on the basis of various considerations. and consider the technology and the methods available. 3.

Productivity. Operations Management. © 2008 Weihrich and Cannice Chapter 20. • Outsourcing – Production and operations are contracted to outside vendors that have expertise in specific areas. and Total Quality Management 7 .Tools and Techniques for Improving Productivity • Inventory planning and control • Just-in-time inventory system – The supplier delivers the components and parts to the production line only when needed and “just in time” to be assembled.

Productivity.Fig. and Total Quality Management 8 . Operations Management. 20-2 Inventory Control Model © 2008 Weihrich and Cannice Chapter 20.

and Total Quality Management 9 . with a view to obtaining a quantitative basis for arriving at a best solution. © 2008 Weihrich and Cannice Chapter 20. Operations Management. Productivity.What is Operations Research? • Operations research is the application of scientific methods to the study of alternatives in a problem situation.

Productivity.What is Value Engineering? • Value engineering is the process of analyzing the operations of the product or service. © 2008 Weihrich and Cannice Chapter 20. Operations Management. and Total Quality Management 10 . estimating the value of each operation. and attempting to improve that operation by trying to keep costs low at each step or part.

Productivity. and Total Quality Management 11 . Operations Management. © 2008 Weihrich and Cannice Chapter 20.What is Work Simplification? • Work simplification is the process of obtaining the participation of workers in simplifying their work.

Productivity. and Total Quality Management 12 . Operations Management. © 2008 Weihrich and Cannice Chapter 20.What is a Quality Circle? • A quality circle is a group of people from the same organizational area who meet regularly to solve problems they experience at work.

Productivity. and Total Quality Management 13 . Operations Management. to meet and exceed customer expectations.Total Quality Management • Total quality management is the organization's long-term commitment to the continuous improvement of quality. throughout the organization and with the active participation of all members at all levels. © 2008 Weihrich and Cannice Chapter 20.

Operations Management. and Total Quality Management 14 . Productivity.Mass Production versus Lean Production Managerial Practices MASS PRODUCTION LEAN PRODUCTION • • • • • Sporadic and inconsistent improvements Satisfied with “good enough” High inventory acceptable “Me” management with emphasis on individual performance Workers considered the cause of poor quality • • • • • Continuous improvements (kaizen) with strategic breakthroughs Aiming at zero defects Just-in-time inventory system “We. team management Responsibility for problems rest on everyone. especially management © 2008 Weihrich and Cannice Chapter 20.” or.

Productivity. Operations Management. and Total Quality Management 15 .Computer-aided Techniques • CAD/CAM help engineers design products much more quickly than they could with the traditional paper-andpencil approach. © 2008 Weihrich and Cannice Chapter 20.

Supply Chain Management • Supply chain management focuses on the sequence of getting raw materials and subassemblies through the manufacturing process in an economical manner. and Total Quality Management 16 . Operations Management. © 2008 Weihrich and Cannice Chapter 20. Productivity.

and Total Quality Management 17 .Porter’s Value Chain Process Model • The value chain process model includes the primary activities of inbound logistics. human resources management. and procurement. operations. technology. and service. outbound logistics. © 2008 Weihrich and Cannice Chapter 20. Operations Management. with the process supported by the enterprise infrastructure. Productivity. marketing/sales.

and Total Quality Management 18 . Operations Management.KEY IDEAS AND CONCEPTS FOR REVIEW • • • • • • • • • • Productivity problems and measurement Production management Operations management Quality in the information age Operations management system Steps in product and production design Production layouts Inventory planning and control Just-in-time inventory system Outsourcing • • • • • • • • • • • Operations research Value engineering Work simplification Quality circle Total quality management Lean manufacturing Computer-aided design Computer-aided manufacturing Supply chain management Value chain management Value chain process model © 2008 Weihrich and Cannice Chapter 20. Productivity.

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