Professional Documents
Culture Documents
Management Decisions
Strategic (long-term) decisions Tactical (intermediate-term) decisions Operational planning and control (short-term) decisions
Inputs
Flow units
(customers, data, material, cash, etc.)
Outputs
Goods Services
Resources
Process Management
A business process is a network of activities performed by resources that transforms inputs into outputs Process Management is a set of managerial policies specifying how a process should be operated over time...
Products
Products are the desired set of process outputs Product Types
Goods versus Services
Product Attributes
Cost Delivery response time Variety Quality
Inputs-Outputs
Tangible Inputs
People Raw material
Intangible Inputs
Information Time
Tangible Outputs
Buildings Cars
Intangible Outputs
Outgoing patient (hospital) Delivered message (advertising company)
Transformations
Physical--manufacturing
Locational--transportation
Exchange--retailing
Storage--warehousing
Physiological--health care
Informational--telecommunications
Therefore, all managers are in some sense Operations managers All managers have an operation to run
Operations Management
Value Proposition Operations Strategy Operation Priorities Cost Quality Delivery Flexibility Innovation Service System Design Product/Service Design Process Selection Planning & Control Aggregate Planning Inventory Systems Project Management Scheduling MRP Statistical Process Control
TQM
Facility location Facility Layout JIT
Characteristics of Goods
Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction
1995 Corel Corp.
Characteristics of Service
Intangible product Produced & consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed
75
50
25
25
50
75
100
Services
Canada
France
Industry
Italy Britain
Farming
10 0 1850 75 1900 25 50 75 2000
Productivity
Measure of process improvement Represents output relative to input
Productivity
Productivity
=
Output
Example 1
Mis Hali cleaned 65 rugs in October, consuming the following resources:
Labor: 520 hours at 13 YTL per hour Solvent: 100 liters at 5 YTL per liter Machine rental: 20 days at 50 YTL per day
a. What is the labor productivity per dollar? (0.0096 ) b. What is the total factor productivity? (0.00787)
Example 2
Because of its excellent location and products, a bakery in Sariyer experienced a 25% increase in demand in the last year. Customers are unable to find the product of their choice on many occasions. Space limitations preclude the possibility of adding another oven. A new process is proposed by an employee which allows several loaves to be baked simultaneously, however requires additional manpower. If the bakery made 1500 loaves this time last year with a labor productivity of 2.344 loaves per labor hour, how many workers will the bakery need to add, assuming each worker works 160 hours per month. (1 worker)