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Chapter 18 Managing Service and Manufacturing Operations

MGMT Chuck Williams. Chapter 18 Managing Service and Manufacturing Operations. Designed & Prepared by B-books, Ltd. Operations Management. Operations Management Managing the daily production of goods and services. Higher Productivity. Lower Costs. Lower Prices. Higher Standard of

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Chapter 18 Managing Service and Manufacturing Operations

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  1. MGMT Chuck Williams Chapter 18Managing Service and Manufacturing Operations Designed & Prepared byB-books, Ltd.

  2. Operations Management Operations Management Managing the daily production of goods and services.

  3. Higher Productivity Lower Costs Lower Prices Higher Standard of Living Higher Profits Higher Market Share Why Productivity Matters 1.1

  4. Kinds of Productivity Outputs Single Kind of Input Outputs Labor + Capital + Materials + Energy Partial productivity = Multifactor productivity = 1.2

  5. Quality-RelatedProduct Characteristics Quality-RelatedServiceCharacteristics ISO 9000 & 14000 BaldrigeNational Quality Award Total Quality Management Quality 2

  6. Meanings for Quality …A product or service free of deficiencies Quality …The characteristics of a product or service that satisfy customer needs 2

  7. Service Operations Services… Goods… • are performed • are intangible • are unstorable • 57.2% of GDP • are made • are tangible • are storable • 32.7% of GDP 3

  8. Service Operations Service-ProfitChain ServiceRecoveryand Empowerment 3

  9. Amount ofProcessing Flexibilityof Manufacturing Manufacturing Operations 4

  10. Costs ofMaintainingInventory Types ofInventory Systems forManagingInventory MeasuringInventory Levels Inventory 5

  11. EOQ EconomicOrder Quantity JIT Just-in-TimeInventory MRP MaterialsRequirement Planning Managing Inventory 5.4

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