managing operations and supply chains ch 8 mie 201

operations management (om)

• Development and administration of activities

• Historically, OM has been called production or manufacturing--limiting it to physical/tangible goods

• Change from production to operations--views function as whole and recognizes services and ideas (tangible & intangible)

system

an interconnected set of elements that is coherently organized in a way that achieves something (function or purpose).

systems view of business

elements processes, converts inputs, to desired outputs

the transformation

• Inputs are converted into outputs

• Operations managers control process by taking measurements (feedback) and comparing them to established standards

  • Take corrective action for any deviation

nature and consumption of output

services require more customer contact and happen at the point of consumption

uniformity of inputs

services are more customized to each customer

uniformity of output

each service is performed differently

labor required

services are more labor intensive

measurement of productivity

intangibility makes measurement more difficult

standardization

used for large quantities for many customers

modular design

allows for quick repair but is costily

customization

generally unique products

planning capacity

• Unit of measurement could be worker, machine, department, branch, or entire plant

• Can be stated in terms of inputs or outputs

• Planning capacity too low results in unmet demand, while planning it too high results in higher cost

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• Computer-assisted design (CAD)

• Design of components, products, and processes on computers

• Flexible manufacturing

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• Drones are used in military operations and are being pursued by Amazon for package delivery, medication deliveries

• Artificial intelligence (A I) will impact manufacturing and supply chain operations.

• Robots have become particularly important in industries in which human lives would otherwise be at risk

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• Computer-integrated manufacturing (CIM) 

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• boosts productivity and quality while reducing costs

supply chain management logistics

• Obtaining/managing raw materials and component parts

• Managing finished products

• Packaging products

• Getting products to customers

procurement

includes purchasing

managing inventory

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• Finished-goods, work-in-progress, raw materials

• Inventory Control—EOQ, JIT, MRP

ISO 9000

• Quality assurance standards.

ISO 14000

• Environmental standards.

ISO 19600:

• Guidelines for compliance management.