Description
i
1
Importance Scope
2
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
?
Why are they successful?
? Fast ? On-time deliveries ? Relatively low cost ? Technology in shipment tracking
3
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Is the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services
4
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
Operations research / Management Sciences / Industrial Engineering ? OM uses the above tools to take decisions
5
AM ITY GLOBAL BUSINESS SCHOOL
A manager is …
Bangalore
… someone who plans, acquires and manages resources needed to meet specific objectives. PLANS ACQUIRES MANAGES
6
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
7
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
8
AM ITY GLOBAL OM’s Transformation Process BUSINESS SCHOOL
Bangalore
9
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Management of the conversion process which transforms inputs such as raw material and labour into outputs in the form of finished goods and services.
Inputs (materials, employees and/or customers)
Transformation Process
Outputs (Products and services)
10
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Transformation process at a Food Processor
Inputs Raw Vegetables Metal Sheets Water Energy Labour Building Equipment Process Cleaning Making cans Cutting Cooking Packing Labelling Output Canned vegetables
11
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Transformation process at a Hospital
Inputs Doctors Nurses Building Medical supplies Equipment Labs Process Examination Surgery Monitoring Medication Therapy Output Healthy patients
12
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
?
To add value
? Increase product value at each stage ? Value added is the net increase between output product value and input material value
?
Provide an efficient transformation
? Efficiency – perform activities well at lowest possible cost
13
AM ITY GLOBAL BUSINESS SCHOOL
Types of Operations
Bangalore
Operations
Goods Producing Storage/Transportation Exchange Entertainment Communication
Examples
Farming, mining, construction , manufacturing, power generation Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines Retailing, wholesaling, banking, renting, leasing, library, loans Films, radio and television, concerts, recording Newspapers, radio and television newscasts, telephone, satellites
14
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
? Services:
Intangible product ? Product cannot be inventoried ? High customer contact ? Short response time ? Labor intensive
?
15
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
? Manufacturers:
Tangible product ? Product can be inventoried ? Low customer contact ? Longer response time ? Capital intensive
?
16
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
All use technology ? Both have quality, productivity, & response issues ? All must forecast demand ? Each will have capacity, layout, and location issues ? All have customers, suppliers, scheduling and staffing issues
17
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Goods vs. Services
Differences Goods (Produce a car) Tangible Low High Low High Easy Easy Services (Teach a class) Intangible High Low High Low Difficult Difficult
Output Customer contact Uniformity of input Labor content Quantity of Output Measurement of productivity Quality assurance
18
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
19
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
For long-run success companies must place much important on their operations
? The 1950-1960 era was the U.S. golden era where primary opportunities were marketing ? The 1970-1980 U.S. companies experienced a large decline in productivity growth – international firms began to challenge in many markets ? The 1970-1980 era saw U. S. firms lagging behind in methods and processes ? The resurgence of American business in the 1990’s capitalized on improved operations
20
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Year Concept 1910 Principles of scientific management Industrial Psychology
Tool Time study work study
Origination Taylor (US)
Motion study Frank and Lillian Gilbreth(US) Henry Ford and Henry Gantt (US)
21
Moving Activity Assembly Line Scheduling Chart Economic Lot Size
EOQ applied Harris (US) to Inv control
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
22
AM ITY GLOBAL BUSINESS SCHOOL
Competitive Priorities
Bangalore
• Competitive advantage denotes a firm’s ability to achieve market and financial superiority over its competitors. • Competitive priorities represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.
23
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
• Cost • Quality • Time • Flexibility • Innovation
24
AM ITY GLOBAL BUSINESS SCHOOL
Competitive Priorities
Bangalore
• Every organization is concerned with building and sustaining a competitive advantage in its markets (see BMW). • A strong competitive advantage is driven by customer needs and aligns the organization's resources with its business opportunities. • A strong competitive advantage is difficult to copy, often because of a firm’s culture, habits, or sunk costs.
25
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
26
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept Quality Control
Tool
Origination
Sampling Inspection Shewhart, Dodge and stat tables for and Romig(US) quality control
Hawthorne Activity sampling for Mayo and Tippett studies work analysis (England )
27
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept
Tool
Origination OR groups (England) and Dantzig (US)
Multidisciplin Linear ary team Programming approaches OR Tools
Simulation, US AND Europe Waiting line theory,decision theory,PERT,CPM
28
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept Widespread use of computers in business Service Quality and Productivity
Tool Shop Scheduling, inventory control, forecasting, MRP
Origination Company mfrers - IBM
Mass Production in Mc Donalds the service sector
29
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept Strategy Paradigm
Tool
Origination
Mfg as a Harvard Bus School competitive faculty (US) weapon
JIT,TQC and Kanban, Tai-Chi onho of Toyota factory pokayokesC (Japan), Deming and automation AD/CAM Juran Synchronous Bottleneck Goldratt (Israel) mfg analysis, theory of constraints
30
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept TQM,BPR
Tool
Origination
Concurrent Michael Hammer and Engg,improveme US consulting firms nt paradigm Internat, World Wide Web US Government, Netscape, Microsoft
31
Electronic Enterprise SCM
SAP, client / SAP(Germany), server software ORACLE(US)
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
E Commerce – Internet, Amazon, eBay, Yahoo ! Outsourcing and FLATTENING of the world
32
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
abstract number, ? the status of production in the industrial sector for a given period of time as compared to a reference period of time. ? single representative figure to measure the general level of industrial activity in the economy. ? Short-term indicator of industrial growth till the actual results from Annual Survey of Industries (ASI) become available.
33
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
?
34
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
35
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
36
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Government for policy planning purposes ? Industrial Associations, Research Institutes and Academicians. ? Mining, Manufacturing and Electricity
?
37
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Define Competitive advantage ? Choose one of these : Dominos, ICICI Prudential, TVS Bike,VLCC, ITC, Wonder La,Amity,B - and list the main activities the operations manager must manage. ? What is each company’s competitive advantage ?
?
? role demands ? role demands ? planning ? planning ? decisions ? decisions ? coordination ? coordination ? systems ? systems
38
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
Read “The Goal” - Eliyahu M. Goldratt “Jack Welch and the GE Way” - Robert Slater
39
doc_894031326.ppt
i
1
Importance Scope
2
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
?
Why are they successful?
? Fast ? On-time deliveries ? Relatively low cost ? Technology in shipment tracking
3
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Is the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services
4
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
Operations research / Management Sciences / Industrial Engineering ? OM uses the above tools to take decisions
5
AM ITY GLOBAL BUSINESS SCHOOL
A manager is …
Bangalore
… someone who plans, acquires and manages resources needed to meet specific objectives. PLANS ACQUIRES MANAGES
6
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
7
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
8
AM ITY GLOBAL OM’s Transformation Process BUSINESS SCHOOL
Bangalore
9
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Management of the conversion process which transforms inputs such as raw material and labour into outputs in the form of finished goods and services.
Inputs (materials, employees and/or customers)
Transformation Process
Outputs (Products and services)
10
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Transformation process at a Food Processor
Inputs Raw Vegetables Metal Sheets Water Energy Labour Building Equipment Process Cleaning Making cans Cutting Cooking Packing Labelling Output Canned vegetables
11
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Transformation process at a Hospital
Inputs Doctors Nurses Building Medical supplies Equipment Labs Process Examination Surgery Monitoring Medication Therapy Output Healthy patients
12
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
?
To add value
? Increase product value at each stage ? Value added is the net increase between output product value and input material value
?
Provide an efficient transformation
? Efficiency – perform activities well at lowest possible cost
13
AM ITY GLOBAL BUSINESS SCHOOL
Types of Operations
Bangalore
Operations
Goods Producing Storage/Transportation Exchange Entertainment Communication
Examples
Farming, mining, construction , manufacturing, power generation Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines Retailing, wholesaling, banking, renting, leasing, library, loans Films, radio and television, concerts, recording Newspapers, radio and television newscasts, telephone, satellites
14
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
? Services:
Intangible product ? Product cannot be inventoried ? High customer contact ? Short response time ? Labor intensive
?
15
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
? Manufacturers:
Tangible product ? Product can be inventoried ? Low customer contact ? Longer response time ? Capital intensive
?
16
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
All use technology ? Both have quality, productivity, & response issues ? All must forecast demand ? Each will have capacity, layout, and location issues ? All have customers, suppliers, scheduling and staffing issues
17
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Goods vs. Services
Differences Goods (Produce a car) Tangible Low High Low High Easy Easy Services (Teach a class) Intangible High Low High Low Difficult Difficult
Output Customer contact Uniformity of input Labor content Quantity of Output Measurement of productivity Quality assurance
18
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
19
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
For long-run success companies must place much important on their operations
? The 1950-1960 era was the U.S. golden era where primary opportunities were marketing ? The 1970-1980 U.S. companies experienced a large decline in productivity growth – international firms began to challenge in many markets ? The 1970-1980 era saw U. S. firms lagging behind in methods and processes ? The resurgence of American business in the 1990’s capitalized on improved operations
20
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Year Concept 1910 Principles of scientific management Industrial Psychology
Tool Time study work study
Origination Taylor (US)
Motion study Frank and Lillian Gilbreth(US) Henry Ford and Henry Gantt (US)
21
Moving Activity Assembly Line Scheduling Chart Economic Lot Size
EOQ applied Harris (US) to Inv control
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
22
AM ITY GLOBAL BUSINESS SCHOOL
Competitive Priorities
Bangalore
• Competitive advantage denotes a firm’s ability to achieve market and financial superiority over its competitors. • Competitive priorities represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.
23
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
• Cost • Quality • Time • Flexibility • Innovation
24
AM ITY GLOBAL BUSINESS SCHOOL
Competitive Priorities
Bangalore
• Every organization is concerned with building and sustaining a competitive advantage in its markets (see BMW). • A strong competitive advantage is driven by customer needs and aligns the organization's resources with its business opportunities. • A strong competitive advantage is difficult to copy, often because of a firm’s culture, habits, or sunk costs.
25
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
26
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept Quality Control
Tool
Origination
Sampling Inspection Shewhart, Dodge and stat tables for and Romig(US) quality control
Hawthorne Activity sampling for Mayo and Tippett studies work analysis (England )
27
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept
Tool
Origination OR groups (England) and Dantzig (US)
Multidisciplin Linear ary team Programming approaches OR Tools
Simulation, US AND Europe Waiting line theory,decision theory,PERT,CPM
28
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept Widespread use of computers in business Service Quality and Productivity
Tool Shop Scheduling, inventory control, forecasting, MRP
Origination Company mfrers - IBM
Mass Production in Mc Donalds the service sector
29
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept Strategy Paradigm
Tool
Origination
Mfg as a Harvard Bus School competitive faculty (US) weapon
JIT,TQC and Kanban, Tai-Chi onho of Toyota factory pokayokesC (Japan), Deming and automation AD/CAM Juran Synchronous Bottleneck Goldratt (Israel) mfg analysis, theory of constraints
30
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Concept TQM,BPR
Tool
Origination
Concurrent Michael Hammer and Engg,improveme US consulting firms nt paradigm Internat, World Wide Web US Government, Netscape, Microsoft
31
Electronic Enterprise SCM
SAP, client / SAP(Germany), server software ORACLE(US)
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
E Commerce – Internet, Amazon, eBay, Yahoo ! Outsourcing and FLATTENING of the world
32
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
abstract number, ? the status of production in the industrial sector for a given period of time as compared to a reference period of time. ? single representative figure to measure the general level of industrial activity in the economy. ? Short-term indicator of industrial growth till the actual results from Annual Survey of Industries (ASI) become available.
33
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
?
34
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
35
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
36
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Government for policy planning purposes ? Industrial Associations, Research Institutes and Academicians. ? Mining, Manufacturing and Electricity
?
37
AM ITY GLOBAL BUSINESS SCHOOL
Bangalore
Define Competitive advantage ? Choose one of these : Dominos, ICICI Prudential, TVS Bike,VLCC, ITC, Wonder La,Amity,B - and list the main activities the operations manager must manage. ? What is each company’s competitive advantage ?
?
? role demands ? role demands ? planning ? planning ? decisions ? decisions ? coordination ? coordination ? systems ? systems
38
AM ITY GLOBAL BUSINESS SCHOOL
?
Bangalore
Read “The Goal” - Eliyahu M. Goldratt “Jack Welch and the GE Way” - Robert Slater
39
doc_894031326.ppt