SPOC Operations Management

operations management

set of activities for planning, controlling, staffing, and designing production systems

production systems must consider

volume, flexibility, and options

Product/process matrix

^

| Project

| Craft

| Batch

| Mass

| Continuous

|________________________________________________________________________

high variability low variability

low volume high volume

Efficacy

degree of achievement

Efficiency

degree of achievement in relation to the cost

Performance indicators to measure efficiency

- productivity

- capacity

- inventory

- product

- quality

- HR policies

break-even point

volume of sales completely covers costs

= FC / (P - VC)

operating leverage (OL) =

= (∆profit/profit) / (∆Q/Q)

PERT chart (Project Evaluation and Review Technic)

- production schedule specifying the sequence of activities, time requirements, and critical path for performing the steps in a project

- shows which activities can be simultaneous

Steps of PERT chart

1. List all activity

2. Consider dependencies

3. Place events and tasks

4. Include time need for each activity

GANTT chart

- Time and activity bar chart that is used for planning, managing, and controlling major programs that have a distinct beginning and end

- used at the beginning of a project

Steps to make a GANTT chart

1. Identify tasks and subtasks

2. Establish connections

3. Create a timeline

4. Order tasks

5. Create template and assign tasks

6. Follow progress