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1、CHAPTER 1 INTRODUCTION TO OPERATIONS MANAGEMENTChapter OverviewThis chapter introduces and defines operations management. Specifically, customers are demanding more today than they have in the past due to globalization of the worlds economy, and the growth of e-commerce. Consequently, operations man
2、agers are faced with providing continually higher quality products with shorter delivery times and better customer service, yet reducing labor and material cost, and increasing the utilization of facilities. The chapter begins by defining operations management. It then discusses operations managemen
3、ts contribution to society, which includes a higher standard of living, better quality goods and services, concern for the environment, and improved working conditions. Next, this chapter discusses the emergence of operations management, including service operations, expanded definition of quality,
4、and application of OM concepts in other functional areas. Finally, it ends with an overview of its historical development.Major Points of ChapterBecause of the today*s highly competitive business environment, operations management must provide continuously higher quality products with shorter delive
5、ry times and better customer service, while reducing labor and material costs, and increasing utilization of facilities.Operations management is the management of the conversion process that transforms inputs into outputs in the form of finished goods and services.A higher standard of living, better
6、 quality goods and services, concern for the environment, and improved working conditions can be traced to improved operations management.An overview of the historical development of operations management helps to explain various influences on OM thought today.Review and Discussion QuestionsWhat is
7、operations management and how is it different from operations research?Operations Management (OM) is a synthesis of concepts and techniques that relate directly to production systems and enhance their management. Operations Management has a distinct management role that differentiates it from OR and
8、 IE. Operations Managers use the tools of OR in decision making and are concerned with many of the same issues as Industrial Engineers. Operations Research/Management Science (OR/MS) is a branch of applied mathematics, while Industrial Engineering (IE) is an engineering discipline.Chapter 1What were
9、 the underlying reasons for the lack of emphasis on operations management in the post-World War II years?After WWII, the U.S. emerged as the major military, political and economic power in the world. In addition, the U.S., through the Marshall Plan was responsible for reestablishing the German and J
10、apanese economies that were destroyed. As a result, there was a world economy, in which little competition existed, and demand exceeded supply because of the unfilled demand from rationing during the war. Therefore, the American companies had little reason to improve quality or radically improve in
11、any OM related facet of business.What are the advantages of bringing customers into the transformation process or technical core?By bringing customers into the technical core, the lag time for needed customer feedback is reduced. System and product design is enhanced by proactively considering custo
12、mer needs, and customer loyalty increases.Take a look at the want ads in The Wall Street Journal and evaluate the opportunities for an OM major with several years of experience.The following are some examples of jobs available in OM from the Wall Street Journal from December 18, 2001:engineeringJOIN
13、 OUR TEAM!Production Operations ManagerUnited States Sugar Corporation has an innnediate opening for a Pnxluction Operations Manager in their Sugar Processing Department. Requires a Bachelor s Deg!ce in Mechanical Engineering or related Iicld and minimum 10 wars experience in the nuinutactunng of ra
14、w and ref ined sugar. Requires a working knowledge ol plant antonialion and conipuivi i/ctl .Hituination systems. BackgrouiHl in a union vm i rontncnl a plus. Ability (o meet deadlines, work independently and research laws and apply them to i company operational techniques.Good oral/writlen communic
15、ation skills essential We offer a competitive salary and benefits package. It qualified, please scnd/fax/email resume to: USSC, HR Dept- P.O. Box 1207, Clewiston, FL 33440 Fax:(863)902-2889. Email:mniaturanai ussugar . EOE.Chapter 1p-Director of OperationsCleveland Steel Container Corporation is a l
16、eader in the container manufacturing industry. We are looking for a key management team member to fill the role of Director of Operations. This Cleveland-based position reports to the company President and will direct 4 plant General Managers each with approximately 9 salaried and 35 hourly employee
17、s.*We are looking for a degreed leader with analytical problem solving skills 4nd a hands-on, plant-floor style to utilize company business plan and key Measurements to provide direction and accountability. Minimum of 5 years related manufacturing experience, and a working knowledge of ISO and *MRP
18、preferred. This position requires approximately 20% out of town Jhvel.We offer excellent pay, benefits, and working conditions. Only qualified 1 candidates will be considered and should send resume to:Director Employee Relations:Cleveland Steel Container Corporation:1840 Enterprise ParkwayTwinsburg,
19、 Ohio 44087Fax 1 330-405-32201VICE PRESIDENTOPERATIONSFor cement plant. Lebec, CAJob. Send resume to:VICE PRESIDENTOPERATIONSFor cement plant. Lebec, CAJob. Send resume to:Natkmal Cement15821 Ventura BU #475Encg CA 91436EngineeringJOIN OUR TEAM!United States Sugar Corporation, located in Clewiston,
20、FL, has immediate openings in their Sugar Processing Department for individuals with good oral/written communication skills, ability to meet deadlines and work independently:ProductionOperations Manager Requires a Bachelor s Degree in Mechanical Engineering or related field and minimum 10 years expe
21、rience in the manufacturing of raw and refined sugar. Must have a working knowledge of plant automation and computerized automation systems. Ability to research laws and apply them to company operational techniques necessary.AssociateProcess ManagerRequires a Bachelors pegree in Chemical Engineering
22、 or related field and a minimum of ten years experience in cane sugar processingsChief EngineerRequires Bachelors Degree in Mechanical Engineering or related field and at 加ast 5 years experience in mechanical engineering. Ability to research laws and apply them to company operational techniques a mu
23、st.Background in a union environment a plus for all positions. We orfer a competitive salary and benefits package. If qualified, please send/fax/ email resume to: USSC, HR Dept” P,O Box 1207, Clewls- ton, FL 33440. Fax: (863) 902- 2889, email: mmaturana ussugarxom. EOE.Chapter 1What are the major fa
24、ctors leading to the resurgence of interest in OM today?With the expanding objectives of productive systems combined with increased applications to services and increased efficiency of Japanese producers, there is increased interest in nuts and bolts issues.Explain the difference, from an operations
25、 management perspective, between cost minimization and value maximization.Cost minimization implies an operational and financially based focus to company systems. This reflects a traditional managerial control orientation. Value maximization, on the other hand, refers to a customer-based view of ope
26、rations. With value maximization, only tasks are performed throughout the value chain that add value for the customer. This has the effect of reducing cost while simultaneously improving organizational effectiveness. The difference, from an operations perspective is one of control orientation versus
27、 customer orientation.Using Exhibit 1.3 as a model, describe the input-transformation-output relationships found in the following systems:An airlineInputs: passengersComponents: planes, crews, equipment, terminalsPrimary functions: transportationOutput: satisfied, safe customersA state penitentiaryI
28、nputs: criminalsComponents: legal system, physical plant (prison), guards and support staffPrimary functions: segregation of prisoners from society, punishment, and rehabilitation Output: reformed society membersA branch bankInputs: customersComponents: tellers, bank officers, teller windows, system
29、sPrimary functions: deposit and withdrawal handling, loan initiation, storing money and valuablesOutput: satisfied customers, positive return on loan ratiosA bakeryInputs: flour and other foodstuffsComponents: bakers, ovens, pansPrimary functions: food preparation and packagingOutput: baked goods to
30、 satisfy customerA clothing manufacturerInputs: material, threadComponents: sewing machines, seamstresses, patternsPrimary functions: making clothing according to specificationsOutput: delivery to satisfied customersA dry cleanerInputs: dirty clothes, cleaning suppliesComponents: workers, washing ma
31、chines, ironing machinesPrimary functions: cleaning clothesOutput: clean clothes to customersAn automobile assembly lineInputs: component partsComponents: workers, assembly line with associated toolingPrimary functions: assemble automobileOutput: finished automobileAn accounting firmInputs: receipts
32、, and other accounting materialComponents: accountants, computersPrimary functions: analyzing accounting information, conducting audits, preparing tax formsOutput: delivering information and finished forms to customersWhat do we mean by the expression value chain, as it applies to the transformation process of a good or service?The term “value chain is borrowed from Michael Porter of Harvard University. Value chain ref
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