Operations Management

1
Operations Management
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Outline

• Introduction
• Operations Strategy Structure
• Product Process Design
• Facilities High Level Capacity Planning
• Job Design, standards and measurement
• capacity and meterial planning

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Outline Part 2

• Material Requirement planning MRP MRPII
• Information Systems MRP database structures
  system control
• Purchasing
• Shop Floor Control
• Just In Time JIT operations Quality Management

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Operations Management

• Introduction

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Operation Function

• Marketing
• Finance
• Engineering Design
• Human Resource Management
• Purchasing
• Operational

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Operation

• System Model
• Qualitative Method
• Organizational Behaviour
• Information Systems
• Economics
• Process Technology

• Business Ethics Law
• Logistics
• Quality Management
• Supply Chain Management

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Input - Transformation - Output

• Transformed Resources
• Material
• Information
• Customers

• Transformation Resources
• Facilities
• Staff

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Operations Improvement Metrics

• Output per man Hour
• Reduce Overtime
• Reduce Inventory Levels
• Improve Inventory Turnover
• Lower Purchasing Costs

• Increase Customer Service Level
• Reduce Scrap/Rework
• Reduce Time to Market
• Increase Throughput
• Increase Capacities Utilisation

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Productively Measures

• Total Productivity Total Output/Total Input
• Manufacture Productivity Total Output/ Partial
  Input
• Partial Factor Productivity Total Output/
  Singal Input

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Increase Income - Reduce Costs

• Product Value
• Over many organizations
• Secondary Metrics
• System Metrics

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Slack

• Excess Resources
• Lead Time
• Delivery Performance
• Few Products Innovation
• Long Development Cycle
• High Warranty Costs
• High Scrap

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System Control

• Closed System
• Controlling Variables
• Metrics gt Measuring Variables
• Simulation Models
• Response gt Change over Time

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Value Added
Input Material Capital Equipment Personal Informat
ion Energy
Manufacturing Operations Service Operations
Goods Service
gt
gt
Management
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Control of System

• Need to Determine
• Accuracy all control metrics required
• Timing of measurements
• Timing of system adjustments
• Target setting of system objectives
• Detailed knowledge of the transformation process
• An accurate system model

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Topology of Operations

• High/Low
• Volume
• Verity
• Variation of Demand
• Customer Contact