Management Chapter XIV
|Operations management||The management of any aspect of the product system that transforms inputs into finished goods and services.|
|Production system||The system that an organization uses to acquire inputs, convert the inputs into outputs, and dispose of the outputs.|
|The goals of operations management|| 1. Improving responsiveness to customers.|
2. Improving quality.
3. Improving efficiency.
| Managers needs to design production systems that produce products that are 1) High Quality 2) Low cost 3) Features rich. |
This could be achieved via:
| 1) Flexible manufacturing systems.|
2) Just in time inventory.
3) New information systems and technologies.
|Customer relationship management||Uses IT to develop an ongoing relationship with customers. Interconnects sales, after-sales service, and support, and marketing.|
|Improving quality|| -Higher responsiveness to customers.|
-Creates brand name recognition.
-Reduces operating costs.
|Improving efficiency--term||Reducing the inputs required to produce a given output increases the efficiency of a production system.|
|Improving efficiency--methods||Facilities layout, Flexible manufacturing, Just in time.|
|Facilities layout||Designing the machine-worker interface to increase production system efficiency.|
|Flexible manufacturing||Reduce the setup costs associated with a production system. Reduce machine and worker idle times.|
|Just in time||System in which parts arrive at an organization when they are needed, not before.|
|Facilities layout--product layout||Machines are organized so that each operation is performed at work stations arranged in a fixed sequence.|
|Facilities layout--process layout|| -Self contained work stations not organized in a fixed sequence.|
-Provides flexibility in making a wide variety of products tailored to customers.
|Facilities layout--fixed position layout|| -The product stays in one spot.|
-Components produced at remote stations are brought to the production location for the final assembly.
|Self managed work teams||-Produces an entire product instead of parts for it.|
-Team members learn all team tasks and move from job to job.
-Team members also assume responsibility for work and vacation scheduling, ordering materials, and hiring new members.
-Advantages being: increase of efficiency of 30% or more, cost savings arise from eliminating supervisors and creating a flatter organizational hierarchy.
|Process reengineering||The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.|