Introduction to Operations Operations -- Prof. Juran.

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Transcript of Introduction to Operations Operations -- Prof. Juran.

  • Slide 1
  • Introduction to Operations Operations -- Prof. Juran
  • Slide 2
  • Intro to Operations Management Administrative Issues Basic Definitions Operations Strategy Historical Development of OM Scientific Management Current Issues in OM Measures of Productivity Outline
  • Slide 3
  • Operations -- Prof. Juran Web site Mission Description Syllabus (note special dates) Downloads Textbook TAs About the Class
  • Slide 4
  • Operations -- Prof. Juran What is Operations Management? The design, control, and improvement of the systems that create and deliver the firms primary products and services
  • Slide 5
  • Operations -- Prof. Juran What is a Production System? A user of resources to transform inputs into some desired outputs
  • Slide 6
  • Operations -- Prof. Juran Important Measures of Performance Efficiency: Using a minimum of resources Effectiveness: Creating value for some customer
  • Slide 7
  • Operations -- Prof. Juran Transformations
  • Slide 8
  • Operations -- Prof. Juran Manufacturing vs. Services What differentiates manufacturing operations from service operations? J&C proposition: All businesses are services
  • Slide 9
  • Operations -- Prof. Juran Operations Strategy J&C: Setting broad policies and plans for using the resources of the firm to best support its long-term competitive strategy Juran: Deciding how the firms competitive strategy will actually happen, in terms of processes that are more efficient and/or more effective than the competitions processes.
  • Slide 10
  • Operations -- Prof. Juran Operations Strategy Key questions: What business are we in? Who are the customers? What do the customers need? How can we meet those needs more efficiently/effectively than the competition? How is all of this going to change over time?
  • Slide 11
  • Operations -- Prof. Juran Competitive Dimensions Cost Product Quality and Reliability Delivery Speed Delivery Reliability Coping with Changes in Demand Flexibility and New Product Introduction Speed Other Product-Specific Criteria
  • Slide 12
  • Operations -- Prof. Juran Dealing with Trade-offs Cost vs. Quality Flexibility vs. Speed Etc.
  • Slide 13
  • Operations -- Prof. Juran Strategic Frameworks Kaplan and Norton: Financial Customer Internal Learning and Growth
  • Slide 14
  • Operations -- Prof. Juran Strategic Frameworks Michael Porter: Rivalry Threat of Substitutes Buyer Power Supplier Power Barriers to Entry / Threat of Entry
  • Slide 15
  • Operations -- Prof. Juran Historical Development of OM Craft System Industrial Revolution Scientific Management Organizational Science Operations Research JIT and TQM Supply Chain Management Internet Commerce
  • Slide 16
  • Operations -- Prof. Juran Craft System
  • Slide 17
  • Operations -- Prof. Juran Industrial Revolution Eli Whitney 1765 - 1825
  • Slide 18
  • Operations -- Prof. Juran Scientific Management Frederick W. Taylor 1856 - 1915
  • Slide 19
  • Operations -- Prof. Juran Industrial Revolution Henry Ford 1863 - 1947
  • Slide 20
  • Operations -- Prof. Juran Scientific Management Frederick Winslow Taylor, (1856-1915), American industrial engineer. In 1878, he began working at the Midvale Steel Company. Developed measures of productivity based on time & motion studies. Became rich from 100+ patents including tempered steel.
  • Slide 21
  • Operations -- Prof. Juran Taylors Industrial Environment Large numbers of unskilled workers Many immigrants who often didnt speak English Homogeneous markets meant great returns to scale (e.g, Model T dropped in price from $1000 to $360) Management not viewed as a general or learnable skill
  • Slide 22
  • Operations -- Prof. Juran Scientific Management Defined by Frederick Taylor, late 1800s. The systematic study of the relationships between people and tasks to redesign the work for higher efficiency. Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. Significant improvements in productivity
  • Slide 23
  • Operations -- Prof. Juran Taylors 4 Principles Develop a science for each element of work Select, train, and develop workers Cooperate with workers (share the savings more $$$ for better performance) Divide work and responsibility equally
  • Slide 24
  • Operations -- Prof. Juran Resistance to Taylor Separation of work from planning destroyed the traditional craft system money substituted for pride Unions mistrusted Taylor reduced work force from 450 to 150 on first job Some firms cut rates after changes Legislation to prevent time studies in government jobs.
  • Slide 25
  • Operations -- Prof. Juran Frank & Lillian Gilbreth Time and Motion Studies Film Therbligs Cheaper by the Dozen Henry L. Gantt Engineer; worked with Taylor Gantt Chart
  • Slide 26
  • Operations -- Prof. Juran The Gilbreths Frank and Lillian Gilbreth refined Taylors methods. Made many improvements to time and motion studies. Time and motion studies: 1. Break down each action into components. 2. Find better ways to perform it. 3. Reorganize each action to be more efficient. Gilbreths also studied fatigue problems, lighting, heating and other worker issues.
  • Slide 27
  • Operations -- Prof. Juran Organizational Science Elton Mayo (1880 - 1949)
  • Slide 28
  • Operations -- Prof. Juran Operations Research Patrick Blackett (1897 - 1974)
  • Slide 29
  • Operations -- Prof. Juran JIT and TQM Taiichi Ohno 1912 - 1990 Kaoru Ishikawa 1915 - 1989 Genichi Taguchi 1924 - 2012
  • Slide 30
  • Operations -- Prof. Juran JIT and TQM Walter Shewhart 1891 - 1967 W. Edwards Deming 1900 - 1993 Joseph M. Juran 1904 - 2008
  • Slide 31
  • Operations -- Prof. Juran Current Issues in OM Coordinating relationships between mutually supportive but separate organizations Optimizing global supplier, production, and distribution networks Managing customer touch points Raising awareness of competitive advantage Amazon, Apple, Taco Bell, Southwest Airlines Operational risk Sustainability and triple bottom line Economics, employees, environment
  • Slide 32
  • Operations -- Prof. Juran What is Productivity? Productivity is a common measure on how well resources are being used. In the broadest sense, it can be defined as the following ratio: Outputs Inputs
  • Slide 33
  • Operations -- Prof. Juran Total Measure Productivity Total Measure Productivity = Outputs Inputs or = Goods and services produced All resources used
  • Slide 34
  • Operations -- Prof. Juran Partial Measure Productivity Output or Output or Output or Output Labor Capital Materials Energy
  • Slide 35
  • Operations -- Prof. Juran Multifactor Measure Productivity Output. Labor + Capital + Energy or Output. Labor + Capital + Materials
  • Slide 36
  • Operations -- Prof. Juran Summary Intro to Operations Management Administrative Issues Basic Definitions Operations Strategy Historical Development of OM Scientific Management Current Issues in OM Measures of Productivity