15 Chapte r Operation s Managemen t Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-1
15 Chapter Operations Management Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-1.
Dec 21, 2015
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15Chapter
OperationsManagement
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-1
Learning Outcomes
After studying this chapter, you will be able to:• Define operations management and explain its
role.• Define the nature and purpose of value chain
management.• Describe how value chain management is done.• Discuss contemporary issues in managing
operations.
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-2
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-3
Operations Management
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-4
Service Firms vs. Manufacturing Firms
Manufacturing organizations produce physical goods, such as cars or food products.
Service organizations produce nonphysical outputs in the form of services, such as medical, transportation, and entertainment services.
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-5
Improving Productivity
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Deming’s 14 Points for Improving Productivity• Plan for the long-term future.• Never be complacent with the quality of your
product.• Establish statistical control over your production
processes and require your suppliers to do so.• Deal with the best and fewest number of suppliers.• Find out if your problems are confined to particular
parts of the production process or stem from the overall process itself.
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-7
Operations Management and Company Strategy
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Value Chain Management
Value chain – The entire series of organizational work activities that add value at each step from raw materials to finished product
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-10
Goals of Value Chain Management
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Benefits of Value Chain Management
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The Value Chain Management Process
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Successful Value Chain Management
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Organizational Processes and Leadership
Organizational processes must change to provide:
1. Better demand forecasting2. Select functions done collaboratively
with other partners in the chain3. New measures needed for evaluating
the performance of various activities along the chain
Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-16
Employees and Human Resources
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Obstacles to Value Chain Management
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Impact of Cultural Attitudes
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People and Capabilities
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Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-21
1. Technology’s role in operations management
2. Quality initiatives3. Project management
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Contemporary Issues
Quality Control
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Quality Goals
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Project Management
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Gantt Charts
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Load Charts
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PERT Network Analyses
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PERT Network Analyses (cont.)
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PERT Network Analyses (cont.)
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Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 15-31
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