Production and Operations
Management Overview
 Operations
Function
 Operations Objectives
 Operations Decisions
 World Class Principles
 Competitiveness
1
Operations Function
 The
Operations function consists of all
activities directly related to producing
goods or providing services.
Organization
Finance
Production/Operations
Marketing
2
Operations Goals
 Productivity
Outputs
Productivity =
Inputs

Quality=Customer’s Perception
3
Operations Decisions
 System
Design
– capacity
– location
– arrangement of departments
– product and service planning
– acquisition and placement of equipment
4
More Operations Decisions
 System
operation
– personnel
– inventory
– scheduling
– project management
– quality assurance
5
World Class Principles
 Continuous
improvement (Kaizen)
 Recognize global competition
 Simultaneously pursue
quality and efficiency
 Total quality management (TQM)
 Increased flexibility
 Variance Reduction
 Operation time reduction
 Lead time reduction
6
More World Class Principles
 Use
advanced technology
 Involve
workers in decision making
and organization rewards
 Apply
reengineering
 Recognize
 Note
environmental issues
the rapid growth of services
7
Competitiveness
Price
Quality
Time
8
Information Technology
Overview
 Performance
Criteria
 Scope
 New
Technology
Opportunities
9
Information Technology
Performance Criteria
 Accuracy
 Timeliness
 Ease
of Use
 Support of Decision Making
 Cost
 Scope of Coverage
10
Scope of Coverage
 Support
all organizational functions
 Supporting organizations such as vendors
through Electronic Data Interchange (EDI)
11
New Technology Opportunities
 Data
Warehousing
 Data Mining
 Internet/World Wide Web
 Wireless Communication
 Paperless Office
 Electronic Data Interchange
12
Cyberspace Savings
A World Wide Web Site Offers These
Savings
Paper
Copying
Phone
Postage
Advertising
Time
Money
13