Production Operations Management

1. Production Operations Management Introduction to POM U. Akinc

2. POM • Productivity • What is it to POM? • What is it to a Company? • What does it Mean to You? • Production/ Operations Management • What? • Who? • Business Strategy and Operations Management

3. Productivity Definition: Economic output per unit of input Productivity = Output/Input (resource)

4. US. Productivity Trends • 600% since 1900 • 2.6% between 1945 - 1973 • 1.2% between 1973 - 1980 • 1.0% between 1980 – 1990 • 2.5% after 1990

5. Recent US Productivity Changes

6. Productivity Trends

7. International Comparisons

8. International Comparisons

9. Pressures on Productivity: Why Does Productivity Have to Grow? • Aging Population

10. Pressures on Productivity: Why Does Productivity Have to Grow? • Aging Population • Environmental Demands

11. Pressures on Productivity: Why Does Productivity Have to Grow? • Aging Population • Environmental Demands • Global Competition

12. Pressures on Productivity: Why Does Productivity Have to Grow? • Aging Population • Environmental Demands • Global Competition • Social Pressures

13. Sources of productivity? Where does productivity come from? • Capital • Technology • Better Management of Resources: • Specialization • Macro (Organizational) • Micro

14. Organizational Goals • Why do organizations exist? An alliance of at least • Labor • Management • Stockholders • Organizational Goals • Productive use of resources

15. Operations • Activities that organizations perform to achieve their goals. • Definition: Activities aimed at bringing about goal oriented changes by designing and using processes.

16. Processes • Any set of activities that use resources, transform and add value to deliver one or more outputs to its customers. • Processes can be nested.. A process may include one or more sub processes

18. Porter’s Value Chain

19. Domain of POM (WHAT?) • Determining the Desired Outputs • Determining the Necessary Inputs • Determining the Technology Necessary • Planning and Controlling the • quality • availability • cost of Work Processes and Their Results • Delivery and Distribution of the Output

20. POM Decisions

21. The Professionals (WHO?)

22. WHAT? Design Many of the design functions are strategic • Facilities design • Locations • Sizes • Layouts • Equipment • Transportation means • Product/Product Line • Management Systems

23. WHAT? Planning Determining the ways in which the productive facility will be used • Demand Forecasting • Production Planning • Material Requirements Planning • Inventory Planning • Staffing Needs • Equipment Needs

24. WHAT? Scheduling Determining the time and the resources with which the tasks will be performed. Examples: • Assignment of specific customer orders to individual machines or individuals • Assignment of workers to work centers • Sequencing of work • Vehicle Dispatching

25. WHAT? Control Determining the degree of match between actual and planned outcomes Examples: • Quality Control • Conformance • Design • Materials Control (Inventory Control) • Equipment Control (Maintenance) • Cost Control (Variance Analysis)