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1、1-2Define the term operations managementIdentify the three major functional areas of organizations and describe how they interrelateCompare and contrast service and manufacturing operationsDescribe the operations function and the nature of the operations managers job1-3 Differentiate between design

2、and operation of production systems Describe the key aspects of operations management decision making Briefly describe the historical evolution of operations management Identify current trends that impact operations management1-4 Operations Management is: The management of systems or processes that

3、create goods and/or provide services Operations Management affects:Companies ability to competeNations ability to compete internationally1-5The Three Basic FunctionsOrganizationFinanceOperationsMarketingFigure 1.11-6The operations function involves the conversion of inputs into outputsInputs Land La

4、bor CapitalTransformation/Conversion processOutputs Goods ServicesControlFeedbackFeedbackFeedbackValue addedFigure 1.21-7 Value-added elements make the difference between the cost of inputs and the value or price of outputs. Product packages are a combination of goods and services. Product packages

5、can make a company more competitive.1-8Automobile assembly, steel makingHome remodeling, retail salesAutomobile repair, fast foodFigure 1.3Computer repair, restaurant mealSong writing, software developmentGoodsServiceSurgery, teaching1-9InputsProcessingOutputs Raw vegetablesCleaningCanned vegetables

6、 Metal sheetsMaking cansWaterCuttingEnergyCookingLaborPackingBuildingLabelingEquipmentTable 1.21-10InputsProcessingOutputsDoctors, nursesExaminationTreated patientsHospitalSurgeryMedical suppliesMonitoringEquipmentMedicationLaboratoriesTherapyTable 1.21-11TangibleAct1-12 Production of goods tangible

7、 output Delivery of services an act Service job categoriesGovernmentWholesale/retailFinancial servicesHealthcarePersonal servicesBusiness servicesEducation1-131. Customer contact2. Uniformity of input3. Labor content of jobs4. Uniformity of output5. Measurement of productivity1-146. Production and d

8、elivery7. Quality assurance8. Amount of inventory9. Evaluation of work10. Ability to patent design1-15CharacteristicGoodsServiceCustomer contactLowHighUniformity of inputHighLowLabor contentLowHighUniformity of outputHighLowOutputTangibleIntangibleMeasurement of productivityEasyDifficultOpportunity

9、to correct problemsHighLowInventoryMuchLittleEvaluationEasierDifficultPatentableUsuallyNot usuallyTable 1.31-16 Operations Management includes:ForecastingCapacity planningSchedulingManaging inventoriesAssuring qualityMotivating and training employeesLocating facilitiesSupply chain managementAnd more

10、 . . .1-17Table 1.4OperationsExamplesGoods ProducingFarming, mining, construction,manufacturing, power generationStorage/TransportationWarehousing, trucking, mailservice, moving, taxis, buses,hotels, airlinesExchangeRetailing, wholesaling, financial advising, renting or leasingEntertainmentFilms, ra

11、dio and television,concerts, recordingCommunicationNewspapers, radio and TV newscasts, telephone, satellitesFigure 1.4a1-19Figure 1.4bSingapore Manufacturing vs. Service Employment1-20 ProductivityIncreasing productivity allows companies to maintain or increase their output using fewer workers Outso

12、urcingSome manufacturing work has been outsourced to more productive companies1-21 Service jobs are often less structured than manufacturing jobs Customer contact is higher Worker skill levels are lower Services hire many low-skill, entry-level workers Employee turnover is higher Input variability i

13、s higher Service performance can be affected by workers personal factors1-22 Models Quantitative approaches Performance metrics Analysis of trade-offs Systems approach Establishing priorities Ethics1-23 WhatWhat resources/what amounts WhenNeeded/scheduled/ordered WhereWork to be done HowDesigned Who

14、To do the work1-24System Design capacity location arrangement of departments product and service planning acquisition and placement ofequipment1-25System operation personnel inventory scheduling projectmanagement quality assurance1-26 Models Quantitative approaches Performance metrics Analysis of tr

15、ade-offs Systems approach Establishing priorities Ethics1-27ModelsA model is an abstraction of reality.Physical SchematicMathematicalWhat are the pros and cons of models?Tradeoffs1-28 Easy to use, less expensive Require users to organize Increase understanding of the problem Enable “what if” questio

16、ns Consistent tool for evaluation and standardized format Power of mathematics1-29 Quantitative information may be emphasized over qualitative Models may be incorrectly applied and results misinterpreted Nonqualified users may not comprehend the rules on how to use the model Use of models does not g

17、uarantee good decisions1-30 Linear programming Queuing techniques Inventory models Project models Statistical models1-31 Decision on the amount of inventory to stock Increased cost of holding inventoryvs.Level of customer service1-32“The whole is greater than the sum of the parts.”1-33 A few factors

18、 account for a high percentage of the occurrence of some event(s). 8020 Rule: 80% of problems are caused by 20% of the activities.How do we identify the vital few?1-34 Financial statements Worker safety Product safety Quality Environment Community Hiring/firing workers Closing facilities Workers rig

19、hts1-35OperationsFinanceFigure 1.5Marketing1-36OperationsPersonnel/Human resourcesMISLegalPublic RelationsAccountingFigure 1.61-37 Industrial revolution (1770s) Scientific management (1911)Mass productionInterchangeable partsDivision of labor Human relations movement (192060) Decision models (1915, 196070s) Influence of Japanese manufacturers1-38 Major trendsThe Internet, e-commerce, e-businessManagement technologyGlobalizationManagement of supply chainsOutsourcingAgilityEthical behavior1-39 Technology: The application of scientific discover

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