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Chapter 12: Managing Operations, quality, and Productivity

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Transcript of Chapter 12: Managing Operations, quality, and Productivity

What is operation managements?
The set of managerial activities used by an organization to transform resource inputs into products, services or both.
The Importance of Operations
Effective and efficiency in operations is necessary for competitiveness and overall performance.
Operations management creates value and utility through the production of products and services.

The Role of Operations in Organizational Strategy
Operations management has a direct impact on competitiveness, quality, productivity, and effectiveness.
Operations management and organizational strategy have reciprocal effects on each other.
Strategic goals cannot be met if there are deficiencies and insufficiencies in operations resources.

There are two types of operations
Manufacturing and Production Operations
Forms of business that combine and transform resource inputs into tangible outcomes that are then sold to others.
Service Operations
Business organizations that transform resources into an intangible output and creates time and place utility for their customers.

Thank you!
Chapter 12: Managing Operations, quality, and Productivity
Ainfarahah Binti Mohd Azmi
Khairul Elmi Kamil 'Alyia Binti Adham
Mohd Zuhailee Syafiq Won Bin Mohd Taufik Won
Muhammad Haildir Bin Mustaffa
Nor Haslinda Binti Johari
IMPROVING PRODUCTIVITY
Improving operations
-spending more on research and development (R&D) –help identify new products, new uses for existing products, and new method for make products.
Boots productivity
through operations is by reassessing and revamping their transformation facilities.

INCREASING EMPLOYEE INVOLVEMENT
Increased employee participation can increase both quality and productivity.
Increasing the flexibility of an organization by workforce by training employees to perform a number different jobs.
Reward are essential to making involvement work.-firms must reward people for learning new skills and using them efficiently.

PHILOSOPHY MANAGEMENT
(K5)
PREPARED FOR: MISS SURIYATI BINTI OTHMAN

Determining Product-Service Mix
Involves deciding how many and what kinds of products to offer in the marketplace.

Capacity Decisions
Involve choosing the amount of products, services, or both that can be produced by an organization.
Can be high-risk decisions due to uncertainty about future product demand and incurred costs of additional, possibly excess, capacity.

Facilities Decision
Facilities are the physical locations where products or services are created, stored, and distributed.

Major decision pertain to facilities location and facilities layout
Location
Location is the physical positioning or geographic site of facilities.
Layout
Layout is the physical configuration of facilities, the arrangement of equipment within facilities, or both.

Designing Operation Systems
The problems, challenges, and opportunities faced by organizations managers revolve around the acquisition and utilization of resources for conversion. Their goals include both efficiency and effectiveness. A number of issues and decisions must be addressed as operations systems are designed.
The most basic ones are product-service mix, capacity, and facilities.

There are four entirely different layout alternative.
Product Layout
A physical configuration of facilities arranged around the product; used when large quantities of a single product is needed.
Process Layout
A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products.
Fixed-Position Layout
A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes.
Cellular Layout
A physical configuration of facilities used when families of products can follow similar flow paths.

Organizational Technologies
Manufacturing Technology
Technology
The set of processes and system used by organizations to convert resources into product or services.
Automation
The process of designing work so that it can be completely or almost completely performed by machines


Computer-assisted manufacturing (CAM)

A technology that relies on computers to design or manufacture product

Computer-aided design (CAD)
Use the computer to design parts and complete product and to simulated performance so that prototype need not be constructed.
Japan automotive industries used it to speed up car design.

Computer-integrated manufacturing (CIM)
CIM, CAD and CAM linked together, and computer networks automatically adjust the machine placements and setting to enhance both complexity and the flexibility of scheduling.
By use this technology all the manufacturing activities controlled by the computer networks.

Flexible manufacturing system (FMS)
A method for producing goods that is readily adaptable to changes in the product being manufactured, in which machines are able to manufacture parts and in the ability to handle varying levels of production and usually have a robotic work units or workstation.

Robot
Any artificial device that can perform functions ordinarily thought to be appropriated for human being
Robotics
The science and technology of the construction, maintenance, and use of robots

Service Technology
Technology services are professional services designed to facilitate the use of technology by enterprises to end users.
Service are rapidly moving toward automated systems and procedures (example automated teller machines and room reservations)
IMPLEMENTING OPERATION SYSTEM THROUGH SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Process of managing operations control, resources acquisition and purchasing, and inventory so as to improve overall efficiently and effectiveness.
OPERATIONS MANAGEMENT AS CONTROL
Coordinating operations, management with other functions help ensure the system focuses on critical elements crucial to goal attainments.

Extra note:
within operation, managerial control ensure that resources and activities achieve primary goals such as high percentage of on-time deliveries, low unit productions cost or high product reliability.

PURCHASING MANAGEMENT (Procurements)
Concerned by buying the materials and resources needed to create product and service.

Extra note:
Purchasing is at the very heart of effective supply chain.
Purchasing manager for a manufacturer buy raw materials, parts and machine needed by the organizations.
The managers must also make sure that the quality of what is purchased meets the organization’s needs, that the supplier is reliable and that the best financial terms are negotiated.

OPERATIONS SYSTEM IN SUPPLY CHAIN MANAGEMENT
MANAGING TOTAL QUALITY
THE MEANING OF QUALITY
Quality is the total of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
Quality is both a relative and absolute concept.
Quality is relevant to both products and services.

Malcolm Baldrige Award
Named after a former secretary of commerce, this award is given by the Commerce Department to firms that achieve major quality improvements.
Quality is also an important concern for individual managers and organizations for three very specific reasons.

1. COMPETITION
 Quality has become one of the most important competitive points in business today.

2. PRODUCTIVITY
 Quality enhancement programs decrease defects, reduce rework, and eliminate the need for inspectors as employees assume responsibility for quality.

3. COSTS
 Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers.

THE IMPORTANCE OF QUALITY
8 DIMENSIONS OF QUALITY
TOTAL QUALITY MANAGEMENT
TQM TOOLS AND TECHNIQUES
UK33410
UK33921

UK34252

UK34268

UK34749

Group 8
Productivity is an economic measure how of efficiency that summarize the value of outputs relative to the value of the inputs used to create them.
Level of productivity
Aggregate productivity-total level of productivity achieved by a country
Industry productivity- total productivity achieved by all the firm in a particular industry
Company productivity-level productivity achieved by an individual company
Unit and individual productivity –productivity achieved by a unit or department within an organization and the level of productivity attained by a single person
Forms of productivity
Total factor productivity-overall indicator of how an organization uses all of its resources. (Labor, capital, materials and synergy) to create all of its products and service

Productivity= Output/input

Labor productivity a partial productivity ratio that uses only one category of resource (labor) to gage the organization’s productivity in utilizing that resource

Labor productivity= Output/(Direct Labor)

THE IMPORTANCE OF PRODUCTIVITY
Firm productivity is a primary determinant of an organization is more productive profitability and its ability to survive
Productivity also partially determines people’s standard of living within a particular country.

PRODUCTIVITY TRENDS
The U.S. has one of the highest level of productivity, although the gap is narrowing as other countries become more productive
Manufacturing productivity growth continues to exceed that of the service sector.
Full transcript