MANAGING OPERATIONS

OPERATIONS
The processes w/n

organizations that transform inputs (labor, capital, materials, and energy) into outputs (services and goods) consumed by the public. Employ people, build facilities and purchase equipment Workers are capable of much greater output

OPERATIONS MANAGEMENT
A multidiscipline field that focuses

on managing an organizations operations

Scope .Decision making about the

design . Planning . Management = of the many factors that affect operations

DECISIONS INCLUDE: what products to produce size facility to build location of facility with respect to customers and suppliers techniques and equipment to use to make the goods or to provide the services

DECISIONS INCLUDE:

quantity of units to produce next how employees should be trained methods to use to enhance product quality

OPERATIONS MANAGERS apply ideas and technologies to increase productivity and reduce costs improve flexibility to meet rapidly changing customer needs shorten delivery time enhance product quality improve customer service

KEY ISSUES IN OPERATIONS

RATIONALE:

> as an organization develops plans and strategies to deal with threats and opportunities present in its environment, it should consider issues

 1. designing a system

=capable of producing the services and goods in the demanded quantities - product development(assessment of customer needs and includes a detailed product design) - product design(determines a products cost and quality/features and performance)> >QFD=quality

- process design=how the

product will be made > 2 major components a. Technical or engineering i. selection of equipment ii. Sequences for production b. Scale economy or business

- mass customization= an alternative to mass producing standardized products - facility design= determining the capacity, location, and layout for the facility i. capacity= a measure of an organizations ability to provide the demanded services or goods in the quantity requested by the customer and

ii. location = the placement of a facility with respect to its customers and suppliers iii. Facility layout= the arrangement of the work space within a facility(departments or work areas) - job design= specifies the tasks, responsibilities, and methods used in performing a job

 2. PLANNING THE

SYSTEM
= how management expects to use the existing resource base created during the original design of the production system whose outcome may be to change the system design to cope

= decisions are made depending on the time horizon: i. Long-term planning ( 5 10 years) ii. Medium term planning (normally about 1year) iii. Short-term planning(decisions become more detailed)

 3. MANAGING THE SYSTEM

= working with people to encourage participation and improve organizational performance

N.B. Participative management and teamwork are becoming essential parts of

THRUSTS Motivation Leadership Training

TWO KEY AREAS OF CONCERN 1. Material management a. Procurement b. Control c. Handling d. Storage e. Distribution (material cost 50% > production cost)

 2. Quality management

a. Quality management programs b. High product quality N.B. Quality is increasingly becoming customer-driven with emphasis put on obtaining a product design that builds quality into the product. >>inspection determines the effectiveness of the designs

UNDERSTANDING OPERATIONS @ CONTRIBUTIONS TO ORGANIZATIONS SUCCESS Strategic nature of operations i. Better production methods ii. Synergy (operations @ operating strategy) iii. Flexibility

 Supply chain management

>organizations focus on core competencies >heavy reliance on the suppliers for the design and production of goods and services(extension of production system) >manage the supply chain from its roots in basic material

 Value-added nature of

operations >customers are willing to pay more for the finished product than the total costs of the inputs (Private sector = profit;/public sector = benefits)

n.b.; the added-value represents an increase

 Impact of technology on

performance = technology is the application of knowledge to solve problems > better products using fewer resources > product performance and quality increase dramatically

 Impact of globally competitive

marketplace >NAFTA >GATT (a finished product has necessarily components from many different countries)

BOND WITH OTHER FUNCTIONAL AREAS W/N THE ORGANIZATION: ANSWERS TO COMPLEX INTERDISCIPLINARY PROBLEMS

A systematic decision is

attainable; problem solving made trouble-free @ effortless.

ROLANDO R. CRUZADA, JR PA204 THANK YOU