Operations Management

Operations management

Set of activities that creates goods and services by transforming inputs into outputs

Operations

A function or system that transforms inputs into outputs of greater value

Operations management

The design, operation, and improvement of manufacturing and service system

Value chain

A series of activities from supplier to customer that add value to a product or service

4 Types needed for operations

Finance, marketing, Human Resources, suppliers

Focus of OM

Efficiency and effectiveness of processes

What operations managers do

Plan, organize, staff, lead, control

Vision

What do we want to accomplish ultimately

Mission

How do we accomplish our goals

Values

Ethical standards and norms that govern the behavior of individuals within a firm

Tools for operation decision making

SWOT, business model canvas

Eisenhower decision matrix

Why is time management important

Time is a scarce resource that must be used well; prevents procrastination, reduce stress, achieve your goals faster, prioritize your work

Value adding time

The moments when the product or service is actually being transformed in a way the customer is willing to pay for (assembling a component coding software)

Non value adding time

Time spent waiting, moving, inspecting, or sitting in inventory

Timeboxing

Production method that involves allocating a fixed amount of time to complete a specific task

Benefits of timeboxing

Increased productivity , improved time management, reduced procrastination, better prioritization, reduced stress

Tips for timeboxing

Set realistic goals, take breaks, be flexible, use a time management tool

Black swan events

Incidents that describe highly improbable but high impact events

Elements of project plan

Objectives, project scope, contract requirements, schedules, resources, personnel, control, risk and problem anaylsis

Gannt Chart

Graph with a bar representing time for each activity in the project being analyzed. Visual display of project schedule

Human Resources

People who work in an organization

Human Resources management

Process of managing these people to achieve organizational goals

Importance of HR

Attract, develop, and retain employees

Motivation

A willingness to work hard because that effort satisfies an employee need

Maslow hierarchy of needs

Physiological, safety, social, esteem, self-actualization

HR and Maslow

Helps decide how benefit packages should be made to meet employee needs

Job performance

Function of motivation combined with ability

Sustainable workplace

Adopting practices that promote environmental sustainability, social responsibility, and economic viability

7 points of compensation

Hourly wage, piece-rate wages, salary, commission, bonus, profit sharing, stock options

Social dimension of OM

Impact of operations on people, including employees, customers, and the broader community

Corporate social responsibility (CSR)

Taking responsibility for the impact of operations on society and the environment

Creating a product

Types of concurrent design

Form design, functional design, and product design

Form design

Physical appearance of a product

Functional design

How the product performs; reliability, maintainability, and usability

Production design

How the product will be made

Reliability

Product will perform its intended function for a specified period of time

Maintainability

Ease/ cost with which a product or service is maintained/repaired

Usability

Ease of use of a product or service

Concepts of product design

Understanding customer needs and preferences, creating a product that is functional and aesthetically pleasing, considering the product life cycle, environmental impact, ensure the product can be manufactured

Simplification

Attempt to reduce the number of parts, assemblies, or options in a product

Standardization

The process in which commonly availed and interchangeable parts are used

Modular design

The process that combines standardized building blocks, or modules, to create unique finished products

Design of manufacture

Process of designing a product so that it can be produced easily and economically

Service design

Process of designing and delivering services that meet the needs of customers and the organization providing the service

Goods vs services

Aspects of serivce design

Developing a service concept, defining the service package, determining performance, design and delivery specifications

Elements of service

Time, human interaction, customization, support

Quality

Degree to which a product meets the design specifications offering a satisfaction factor that fulfills all the expectations that a customer wants

Quality management

Comprehensive, organization-wide approach to ensuring that company’s products, services, and processes consistently meet or exceed customer expectations

Dimesnions of quality for manufactured products

Performance, features, realizability, conformance, durability, serviceability, aesthics, safety

Dimensions of quality for services

Time, completeness, courtesy, consistency, accessibility, accuracy, responsiveness

Jidoka

Any worker can stop the production line if they spot a defect, preventing the problem from moving down the line

Edward’s deming wheel

Plan, do, study/check, act

Importance of Quality management

To improve customer satisfaction, to reduce costs, to increase market share, to comply with regulations

Blockchain

Transparency and security to supply chain

Goals of blockchain

Decentralization, traceability, disintermediation, transparency and verfiability, immutability of the register(data can’t be changed), programmability of transfers

Smart contract advantages

Certainty of the execution of contractual obligations visible to all participants, transparency of contractual obligations, immutability of recorded transactions, possibility of reaching an agreement in the absence of trust

Classes of artificial intelligence

Autonomous vehicle, autonomous robot, intelligent object, virtual assistant and chatbot, recommendation, image processing, language processing, intelligent data processing

Big data

Private data for marketing, business analysis, security

Internet of things

Path in technological development on the basis of which, through the internet, potentially every object of daily experience acquires its own identity in the digital world. Connection of intelligent objects

Trend

Gradual long-term up or down movement of demand

Types of trends

Random variations

Movement in demand that do not follow a patter

Cycle

An up and down movement in demand

Seasonal pattern

Up and down repetitive movement in demand occurring periodically

Time series methods

Statistical techniques that use historical demand data to predict future demand

Regression methods

Attempt to develop a mathematical relationship between demand and factors that cause it to behave the way it does

Qualitative methods

Qualitive forecasting methods use management judgement, expertise, and option to make forecasts

Data mining

Process for analyzing large amounts of data to identify patterns, trends, and relationships in groups