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Production and Operations Management

Session 1: productivity
by

Thomas Vulsma

on 18 August 2014

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Transcript of Production and Operations Management

Production and Operations Management
thomvu@kku.ac.th
Production & Operations Management
All firms do operations
Production
Operations Management
Design Goods and Services
Design Process and Capacity
Layout Strategy
Productivity
More Wealth and Higher Quality of Life
Productivity =
Productivity =
Exercise
Do
1.1
1.2
1.4
1.7
Labor (10% annually)
Capital (38% annually)
Why is it difficult to increase productivity in Service?
Labor intensive
How it's made
050 321
Today:
Course outline
Expectations
Learning methods
Productivity
E-Learning Website
Enroll, visit, download, opload, submit
What is that?
Making Products
Making Services
LO:
define Operations Management
know the difference between services and goods
calculate single factor productivity
calculate multifactor productivity
Improving productivity
Airline
Bank
Restaurant
Coke faculty
make a list of steps to produce each product
Make a study group
Supply Chains
Activities which supply a
firm with goods & services
What does an Operations Manager do?
Chapter 5
Manage Quality
Chapter 6
Chapter 7
Location Strategy
Chapter 8
Chapter 9
Supply Chain Strategy
Chapter 11
Inventory Strategy
Chapter 12
Materials Planning
Chapter 14
Just In Time
Chapter 16
Grading:
Study Project (group) 20%
In class/Home work 20%
Mid Term Exam 30%
Final Exam 30%

Services
Goods
Intangible
Production & Consumption simultaneous
Unique
High interaction
Inconsistent (changes)
Knowledge based
Dispersed
Quality difficult to manage
Not Resalable

Tangible
Inventory
Similar products
Limited customer involvement
Standard products
Automation possible
Fixed at factory
Easy to evaluate quality
Residual value for resale
How do services make operations more difficult?
Input
Materials
Labor
Capital
Management
Output
Products or satisfied customers
Processing (production)
Add value to inputs
through production
or operations
How do we measure Productivity?
Units produced
Inputs used
Inputs can be measured in many ways (labor hours, dollars, KW of energy used, amount of material used etc)
example:
productivity =
1,000
250
= 4 units per labor hour
products
labor hours
=
Single factor productivity
Multifactor Productivity
Output
Labor + Materials + Energy + Capital + ...
Make sure that all the bottom numbers are the same units (dollars)
Homework
1.8
1.9
1.10
1.12
1.14
1.16
1.17
Do in MSExcel
Example 2 page 50-51
How to improve productivity?
Better education
Healthier workforce
Better social factors
Literacy, enhancing skills of labor

Santation and clean drinking water
Good transportation
Tools
Machines
Equipment
Buildings
Land
Money
Management (52% annually)
Use of knowledge and technology to make production better and create new products
Service Sector Productivity
Unique (time consuming)
Intellectual task
Mechanization difficult
Quality management
Full transcript