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1、1-11-2Please ContactCell Phone：Email：1-3Please notify me in advance if you are absent or late,taking a French leave is not allowed.According to the rules made by MBA office,those who are absent one third or above from the total classes will be barred from the final exam,no matter what grade you get
2、in the other 2!1-4 If you have any comments,please feel free to let me know,either by email,phone call or face-to-face talk,Id prefer the latter for its high efficiency.Your suggestions are welcomed so I am open to them all the time.Besides,Id like you to treat me not only like a teacher,but a frien
3、d as well.Thanks for the POM course,for it serves as a bridge between us.1-5Performance AppraisalParticipation&Attendance：25%Assignment&Case Study in Written Form：25%Final Exam：50%1-6Operations Management for Competitive Advantage Richard B.Chase,Nicholas J.Aquilano,F.Robert Jacobs Ninth Edition McG
4、raw-Hill1-71 Operations ManagementJay Heizer,Barry Render/Seventh Edition/Pearson Education2 Operations ManagementWilliam J.Stevenson/Seventh Edition/McGraw-Hill1-8Focus on birds-eye view of POM rather than a certain specific content,Focus on the managerial matter of POM rather than methodologies an
5、d techniques,Focus on the most useful segments of POM rather than a comprehensive ones,andLecture,case study(assignment),discussion,and site touring(speeches given by celebrities of POM)will comprise the total activities of this course.1-9You should have a sound mathematical sense for so many POM pr
6、oblems need to be calculated,You should have a good knowledge of computer science for it is a valuable tool to tackle POM problems,You should deal with the real problems by using the book knowledge,Last,not least,you should be familiar with the English language because the newly emerged POM techniqu
7、es are mostly explained in this language.1-101-11 WHAT IS OPERATIONS MANAGEMENT?THREE ORGANIZATIONAL FUNCTIONS WHY STUDY OM?OPERATIONS DESCISIONS WHAT OPERATIONS MANAGERS DO WHERE ARE THE OM JOBS?1-12 THE HERITAGE OF OPERATIONS MANAGEMENT OPERATIONS IN THE SERVICE SECTORDifferences between Goods and
8、 ServicesGrowth of Services EXCITING NEW TRENDS IN OPERATIONS MANAGEMENT1-13When you complete this chapter,you should be able to:Identify or Define:Operations Management(OM)What operations managers doServices1-14When you complete this chapter,you should be able to:Describe or Explain:A brief history
9、 of operations managementCareer opportunities in operations managementThe future of the discipline1-15Production is the creation of goods and servicesOperations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs1-16OperationsE
10、xamplesGoods ProducingFarming,mining,construction,manufacturing,power generationStorage/TransportationWarehousing,trucking,mailservice,moving,taxis,buses,hotels,airlinesExchangeRetailing,wholesaling,banking,renting,leasing,library,loansEntertainmentFilms,radio and television,concerts,recordingCommun
11、icationNewspapers,radio and televisionnewscasts,telephone,satellites1-17Transformation(Conversion)ProcessEnergyMaterialsLaborCapitalInformationGoods orServicesFeedback information forcontrol of process inputsand process technology1-18 Physical-manufacturing Locational-transportation Exchange-retaili
12、ng Storage-warehousing Physiological-health care Informational-telecommunications1-19InputsProcessingOutputsRaw VegetablesCleaningCanned vegetablesMetal SheetsMaking cansWaterCuttingEnergyCookingLaborPackingBuildingLabelingEquipment1-20InputsProcessingOutputsDoctors,nursesExaminationHealthy patients
13、HospitalSurgeryMedical SuppliesMonitoringEquipmentMedicationLaboratoriesTherapy1-21Essential functions:Operations creates the product or serviceMarketing generates demand,Gets customersFinance/accounting tracks organizational performance,pays bills,Obtains funds and Tracks money1-22OperationsFinance
14、/AccountingMarketingCheckClearingTellerSchedulingTransactionsProcessingSecurityCommercial Bank 1984-1994 T/Maker Co.Example 11-23Commercial BankOperationsTeller SchedulingCheck ClearingTransactions processingFacilities design/layoutVault operationsMaintenanceSecurityFinanceInvestmentsSecurityReal Es
15、tateAccountingAuditingMarketingLoans Commercial Industrial Financial Personal MortgageTrust Department1-24OperationsFinance/AccountingMarketingGroundSupportFlightOperationsFacilityMaintenanceCateringAirline 1984-1994 T/Maker Co.Example 21-25AirlineOperationsGround support equipmentMaintenanceGround
16、Operations Facility maintenance Catering Flight Operations Crew scheduling Flying Communications DispatchingManagement scienceFinance&AccountingAccountingPayablesReceivablesGeneral LedgerFinanceCash controlInternational exchange ratesMarketingTraffic administrationReservationsSchedulesTariffs(pricin
17、g)SalesAdvertising1-26OperationsFinance/AccountingMarketingProductionControlManufacturingQualityControlPurchasingManufacturingExample 31-27ManufacturingOperationsFacilities:Construction:maintenanceProduction&inventory control Scheduling:materials controlSupply-chain managementManufacturing Tooling,f
18、abrication,assemblyDesign Product development and design Detailed product specificationsIndustrial engineering Efficient use of machines,space,and personnelProcess analysis Development and installation of production tools and equipmentFinance&AccountingDisbursements/credits Receivables Payables Gene
19、ral ledgerFunds Management Money market International exchangeCapital requirements Stock issue Bond issues and recallMarketingSales promotionsAdvertisingSalesMarket research1-28DecisionsSample OptionProductCustomized,or standardizedQualityDefine customer expectations and how to achieve themProcessFa
20、cility size,technology,capacityLocationNear supplier or customerLayoutWork cells or assembly lineHuman resourceSpecialized or enriched jobsSupply chain Single or multiple source suppliersInventoryWhen to reorder,how much to keep on handScheduleStable or fluctuating productions rateMaintenance Repair
21、 as required or preventive maintenanceMarketingServiceDistributionPromotionChannels of distributionProduct positioning(image,functions)Finance/AccountingLeverageCost of capitalWorking capitalReceivablesPayablesFinancial controlLines of creditProduction/Operations1-29“The manufacturing business of to
22、morrow will not be run by financial executives,marketers,or lawyers inexperienced in manufacturing,as so many U.S.companies are today.”1-30关注生关注生产环节产环节的管理的管理QualityControlMarketingPOMHRMWorld War1960s s1970s1980s1990s21th Century1-31OM is one of three major functions(marketing,finance,and operations
23、)of any organization.We want(and need)to know how goods and services are produced.We want to understand what operations managers do.OM is such a costly part of an organization.1-32Fisher Technologies is a small firm that merely survives in stifling competition in a certain field.In order to be more
24、competitive,Fisher Technologies needs to update its obsolete production equipment by applying a bank loan,so the company is making three optional plans in term of marketing,financing and production respectively aiming to improve profit,but which one is the most feasible?1-33 Marketing Option Finance
25、&Accounting Option OM Option Current Sales Revenue:+50%Finance Costs:-50%Production Costs:-20%Sales$100,000$150,000$100,000$100,000 Cost of Goods Sold-80,000 -120,000 -80,000 -64,000 Gross Margin 20,000 30,000 20,000 36,000 Finance Costs-6,000-6,000-3,000-6,000 Net Margin 14,000 24,000 17,000 30,000
26、 Taxes 25%-3,500-6,000-4,250-7,500 Contribution 10,500 18,000 12,750 22,500 1-34 Service,product design Quality management Process,capacity design Location Layout design Human resources,job design Supply-chain management Inventory management Scheduling Maintenance 1-35Quality managementWho is respon
27、sible for quality?How do we define quality?Service and product designWhat product or service should we offer?How should we design these products and services?1-36Process and capacity designWhat processes will these products require and in what order?What equipment and technology is necessary for the
28、se processes?LocationWhere should we put the facilityOn what criteria should we base this location decision?1-37Layout designHow should we arrange the facility?How large a facility is required?Human resources and job designHow do we provide a reasonable work environment?How much can we expect our em
29、ployees to produce?1-38Supply chain managementShould we make or buy this item?Who are our good suppliers and how many should we have?Inventory,material requirements planning,How much inventory of each item should we have?When do we re-order?1-39Intermediate,short term,and project schedulingIs subcon
30、tracting production a good idea?Are we better off keeping people on the payroll during slowdowns?MaintenanceWho is responsible for maintenance?When do we do maintenance?1-40Products&servicesPlanningCapacityLocationMake or buyLayoutProjectsSchedulingControllingInventoryQualityOrganizingDegree of cent
31、ralizationSubcontractingStaffingHiring/laying offUse of OvertimeDirectingIncentive plansIssuance of work ordersJob assignments1-41Public RelationsAccountingIndustrialEngineeringOperationsMaintenancePersonnelPurchasingDistributionMIS1-421-43Technology/methodsFacilities/space utilizationStrategic issu
32、esResponse timePeople/team developmentCustomer serviceQualityCost reductionInventory reductionProductivity improvement1-44Pre-industrial revolutionCraft production:skilled workers,flexible tools,small quantities and customized goodsTraits:production was slow and costly,no economies of scale and thus
33、 on stimulant for production expansion.Industrial revolutionA number of innovations changed the face of production:James Watts steam engine(1764),James Hargreaves spinning jenny(1770)and Edmund Cartwrights power loom(1785).1-45Scientific managementBased on observation,measurement,analysis and improv
34、ement of work methods,and economic incentives.Until then scientific management turned production from“the rule of thumb”to the“science of management”.Frederick W.Taylor and many other pioneers contributed a lot in this stage.The human relations movementScientific management ignored the human element
35、 which was emphasize by a number of psychologists who introduced a series of theories,among them Theory X,Theory Y,and Theory Z are best known.1-46Decision model and management scienceWith the development of mathematics and due to the World War Two,many newly invented techniques were applied for the
36、 civilian use and warfare purpose.Especially,with the advent of personal computer this trend was greatly improved and a new branch of management emerged:management science which deal with the problem with mathematical method and computer.The influence of Japanese manufacturersDuring 1970s to now,Jap
37、anese manufacturers developed or refined management practices which originated from the West and greatly increased the productivity of their operations and the quality of their products and this influence exerts profound impact to their counterparts in the West.1-471-481-49Division of labor(Adam Smi
38、th 1776 and Charles Babbage 1852)Standardized parts(Whitney 1800)Scientific Management(Taylor 1881)Coordinated assembly line(Ford/Sorenson/Avery 1913)Gantt charts(Gantt 1916)Motion study(Frank and Lillian Gilbreth 1922Quality control(Shewhart 1924;Deming 1950)Computer(Atanasoff 1938)CPM/PERT(DuPont
39、1957)1-50Material requirements planning(Orlicky 1960)Computer aided design(CAD 1970)Flexible manufacturing system(FMS 1975)Baldrige Quality Awards(1980)Computer integrated manufacturing(1990)Globalization(1992)Internet(1995)1-51 Born 1765;died 1825 In 1798,received government contract to make 10,000
40、 muskets Showed that machine tools could make standardized parts to exact specificationsMusket parts could be used in any musket 1995 Corel Corp.1-52 Born 1856;died 1915 Known as father of scientific management In 1881,as chief engineer for Midvale Steel,studied how tasks were doneBegan first motion
41、&time studies Created efficiency principles 1995 Corel Corp.1-53Matching employees to right jobProviding the proper trainingProviding proper work methods and toolsEstablishing legitimate incentives for work to be accomplished1-54 Frank(1868-1924);Lillian(1878-1972)Husband-and-wife engineering team F
42、urther developed work measurement methods Applied efficiency methods to their home&12 children!(Book&Movie:“Cheaper by the Dozen,”book:“Bells on Their Toes”)1995 Corel Corp.1-55 Born 1863;died 1947 In 1903,created Ford Motor Company In 1913,first used moving assembly line to make Model TUnfinished p
43、roduct moved by conveyor past work station Paid workers very well for 1911($5/day!)Model T produced in1908 with 514 min.$850 each by hand to 1.19 min.$290 each in 1926 by moving assembly line.Make them all alike!1995 Corel Corp.Any color as long as its black1-56 Born 1900;died 1993 Engineer&physicis
44、t Credited with teaching Japan quality control methods in post-WW2 Used statistics to analyze process His methods involve workers in decisions1-57Human factorsIndustrial engineeringManagement scienceBiological sciencePhysical sciencesInformation science 1-58Division of labor(Smith,1776)Standardized
45、parts(Whitney,1800)Scientific management(Taylor,1881)Coordinated assembly line(Ford 1913)Gantt charts(Gantt,1916)Motion study(the Gilbreths,1922)Quality control(Shewhart,1924)1-59CPM/PERT(Dupont,1957)MRP (Orlicky,1960)CADFlexible manufacturing systems(FMS)Manufacturing automation protocol(MAP)Comput
46、er integrated manufacturing(CIM)Unlike other fields of science,POM witnesses significant changes in every 10 years.1-601-6101020304050607080PolandPortugalCzech Rep.HungaryGreeceItalySpainGermanyIrelandAustriaJapanFinlandSwitz.DenmarkFranceSwedenU.K.BelgiumNorwayLux.U.S.A.Neth.CountryPercent of Total
47、 Employment1-621-6326%18%16%14%6%6%5%5%3%1%Education,Health,etc.ManufacturingRetail TradeState&Local GovtFinance,InsuranceWholesale TradeTransport,Public Util.ConstructionFederal GovernmentMining1-64Service SectorExample%of all JobsProfessional services,education,legal,medicalNew York City PS108,Not
48、re Dame University,San Diego Zoo24.3Trade(retail,wholesale)Walgreens,Wal-Mart,Nordstroms20.6Utilities,transportationPacific Gas&Electric,American Airlines,Santa Fe R.R,Roadway Express7.2(Operations Management by Jay Heizer,Barry Render,7e)1-65Service SectorExample%of all JobsBusiness&Repair Services
49、Snelling&Snelling,Waste Management,Pitney-Bowes7.1Finance,Insurance,Real EstateCiticorp,American Express,Prudential,Aetna,Trammel Crow6.5Food,Lodging,EntertainmentMcDonalds,Hard Rock Caf,Motel 6,Hilton Hotels,Walt Disney Paramount Pictures5.2Public Administration U.S.,State of Alabama,Cook County4.5
50、1-66Manufacturing SectorExample%of all JobsGeneralGeneral Electric,Ford,U.S.Steel,Intel14.8ConstructionBechtel,McDermott7.0AgricultureKing Ranch2.4MiningHomestake Mining0.41-67Sector%of all JobsService75.4%Manufacturing24.6%1-681850 75 1900 25 50 75 200040 50 60 701970 75 80 85 90 95 2000PercentUnit