...Filled Notes for Chapter 1: Introduction to Operations Management Highlights of the chapter: 1. Operations as one of the three main functional concerns of most organizations. 2. The role and job of the operations manager as a planner and decision-maker. 3. Different ways of classifying (and understanding) production systems. 4. System design versus system operation. 5. Major characteristics of production systems. 6. Contemporary issues in operations management. 7. Operations as essentially managerial (planning, staffing, etc.) 8. The historical evolution of production/operations management. 9. Manufacturing operations versus service operations. Reading: The Challenges of Managing Services 1. In comparison to manufacturing industry, services have: a. Less structured jobs. b. Higher customer contact. c. Lower worker skills. d. Low skill entry-level positions. e. Higher employee turnover. f. Higher input variability. 2. Because of the factors listed in the answer to question 1, in service industry it is more difficult to control costs and quality resulting in lower productivity. In addition the risk of customer dissatisfaction is greater and employee motivation is lower. Reading: Why Manufacturing Matters 1. Since the U.S. economy is becoming more service based, the percentage of employment in manufacturing is declining while the percentage of employment in service industry is increasing. An agile manufacturer is able to switch quickly and economically...
Words: 2179 - Pages: 9
...ChApter 18 Management of Waiting Lines Teaching Notes Some of the math and calculations can be left out in order to focus more clearly on the concepts of waiting lines. For example, all infinite source problems, including single channel (except constant service time) can be handled using the infinite source queuing table. In the past, queuing presented students with a good bit of computational requirements, and because of that, students frequently lost sight of the underlying concepts. With less emphasis on math of calculations, students can handle individual problems more quickly, allowing an instructor to assign a greater number of homework problems, and hopefully enabling students to enrich their experience with queuing vis a vis a variety of (short) problems. If you want to shorten the material somewhat, I would suggest omitting the finite source model and/or the multiple priority model. You can shorten the section even more by not assigning problems which require cost comparisons, although I personally feel that cost comparisons are perhaps the ultimate goal in an operations management course. Answers to Discussion and Review Questions 1. Queuing analysis is appropriate in analyzing capacity when service and/or arrival rates are highly variable. 2. Variations in service and/or arrival rates create instances in which demand temporarily exceeds capacity. 3. Commonly used measures of system performance include the average number waiting and average time they wait...
Words: 1935 - Pages: 8
...Operations Management QM 358-740 Summer 2013 Chapter 14 Homework Discussion and Review Questions 6, 8, and 10 1.) (6) Certain Japanese have claimed that Henry Ford’s assembly line provided some of the rationale for lean. What features of assembly lines are common to lean systems? Features of assembly lines that are common to lean systems include: * Muda- waste and inefficiency * Pull system- replacing material or parts based on demand * Kanban- a manual system that signals the need for parts or materials * Heijunka- workload leveling * Kaizen- continuous improvement of the system * Jidoka- quality at the source 2.) (8) Contrast push and pull methods of moving goods and materials through production systems. In a push system work is pushed to the next station as it is completed. Releases are scheduled so output is determined by a set release rate. Since the releases are linked to orders (or forecasts), a push system is controlled by upstream information and is fundamentally make-to-order. In a pull system, a workstation pulls output from the preceding station as it is needed. Releases are authorized. That is, there is an internal signal based on system status that determines whether a release is allowed or not. 3.) (10) What are the benefits and risks of small lot sizes? Lot size directly affects inventory and scheduling. Benefits and risks of small lot sizes include: * Reduced inventory, lower carrying costs * Less...
Words: 554 - Pages: 3
...CHAPTER 10 SUPPLY CHAIN MANAGEMENT Teaching Notes This chapter introduces the concept of supply chain, its management, performance measures and improvement approaches. As an extension of the systems point of view, the system dynamics inherent in the supply chain are illustrated and the coordination in the supply chain is emphasized. Five areas where measurement of supply chain performance should be made are discussed. The five areas are on-time delivery, quality, time (business cycle) total delivered cost and flexibility. Supply chain strategies including functional or innovative strategies are described with examples. The basic ways to improve supply chains by changing structure or infrastructure are illustrated. The chapter ends with a discussion of e-business, e-procurement, and virtual supply chains. In teaching the chapter, it is helpful to illustrate the systems interactions in a supply chain and show how supply chain performance can be measured and improved through the use of concrete examples. The references by Lee (1995, 2004), Schonberger (1996), Fisher (1997), Badoc (2001), and Baliga (2001) will be useful in preparing lectures. Answers to Questions 1. Supply chain management is planning, design and control of the flow of information and materials along the supply chain in order to meet customer requirements in an efficient manner, now and in the future. Demand management is managing the demand for goods or services along the supply...
Words: 1909 - Pages: 8
...Filled Notes for Chapter 1: Introduction to Operations Management Highlights of the chapter: 1. Operations as one of the three main functional concerns of most organizations. 2. The role and job of the operations manager as a planner and decision-maker. 3. Different ways of classifying (and understanding) production systems. 4. System design versus system operation. 5. Major characteristics of production systems. 6. Contemporary issues in operations management. 7. Operations as essentially managerial (planning, staffing, etc.) 8. The historical evolution of production/operations management. 9. Manufacturing operations versus service operations. Reading: The Challenges of Managing Services 1. In comparison to manufacturing industry, services have: a. Less structured jobs. b. Higher customer contact. c. Lower worker skills. d. Low skill entry-level positions. e. Higher employee turnover. f. Higher input variability. 2. Because of the factors listed in the answer to question 1, in service industry it is more difficult to control costs and quality resulting in lower productivity. In addition the risk of customer dissatisfaction is greater and employee motivation is lower. Reading: Why Manufacturing Matters 1. Since the U.S. economy is becoming more service based, the percentage of employment in manufacturing is declining while the percentage of employment in service industry is increasing. An agile manufacturer is able...
Words: 3754 - Pages: 16
...ORGANIZATIONAL DESIGN A process involving decisions about six key elements: WORK SPECIALIZATION The process of focusing one's occupational concentration on a specific area of expertise. An increase in job specialization among employees can make them less flexible since it tends to reduce their ability to perform other types of work within the business that fall outside their particular specialty. DEPARTMENTALIZATION The process of forming employees into groups to accomplish specific organizational goals. TYPES OF DEPARTMENTALIZATION * FUNCTIONAL - Functional departmentalization in a restaurant could operate by separation of sales and marketing versus operations. Operations in the restaurant context apply to the preparation of food, while sales would apply to the serving of customers. (In this scenario, management may have difficulty deciding where to include staff that makes and serves drinks at the restaurant’s bar, because they are involved in both activities.) * Functional Departmentalization. An organization can be organized into departments based upon the respective functions each performs for the organization. For example, a manufacturing company may create a production department, sales and marketing department, an accounting department, and a human resources department. Functional departmentalization may be advantageous as it can increase efficiency and expertise because all related activities are performed in one place by one group of people that specialize...
Words: 386 - Pages: 2
...CHAPTER 1 INTRODUCTION TO OPERATIONS MANAGEMENT KEY IDEAS 1. Three Basic Business Functions. Operations is that part of an organization responsible for the creation of value in the form of goods and/or services, ideally balancing the supply of these items with customer demand. Operations works in conjunction with the complementary business functions of finance, responsible for securing and allocating the financial resources necessary to maintain the organization, and marketing, responsible for evaluating and enhancing customer demand. 2. Input, Output and Value-added. Any operation can be described as a set of inputs (i.e. labor and materials) that are transformed into a set of outputs (i.e. goods and/or services), as illustrated in Figure 1.4 of page 6 of the textbook. The essence of operations management is value-added, or the degree to which the value of all outputs of an operation exceed the value of its inputs. 3. Goods vs. Services. Goods imply tangible products, those that can handled and/or stored in some fashion, such as manufactured items or food. Services are intangible products, such as health care or education. Material goods often require a distribution system to get them into the hands of consumers, while service industries tend to deal directly with consumers. Other important points on which the production of goods and services differ are summarized in Table 1.3 on page 9 of the textbook. 4. Process Management. A process is any action involved...
Words: 730 - Pages: 3
...Fall 2015 – MGT 3110 - HW01-Ch01 DUE: 8/23/2015 50 points 1. Problem #1.6, page 21 2. Problem #1.7, page 22 3. An Appliance Service company repaired 15 lawn-mowers, 18 refrigerators, and 10 washers in an 8-hour day with his standard crew of 6 workers. The average wage for the workers is $12.50 per hour. The materials cost for a day was $500 while the overhead cost was $300. The retail price for each respective service is $50, $125, and $80? a. What is the multifactor productivity? b. How much of a reduction in input is necessary for a 4% increase in multifactor productivity? SHOW ALL YOUR WORK FOR FULL CREDIT -- NO WORK NO CREDIT!!!!! Completed homework must be uploaded to Blackboard. Acceptable file formats are pdf, docx, xlsx. Files of any other format will NOT be graded. Emailed homework will NOT be graded. Partial answer key: 1. Problem #1.6, page 21: Change %: 9.09%, 11.11%, -9.10%, 5.28% 2. Problem #1.7, page 22: Change %: 7.517% 3. (a) 2.7143; (b) $53.87 NOTE: 1. Please read and follow the guidelines. Remember, JPG files will not be graded. 2. Make sure the file orientation is vertical (portrait) so that we can read your work properly. I don't want to have to tilt my head sideways. If the orientation is not vertical (portrait) the HW will NOT be graded. 3. Please use a scanner to convert your paper work into electronic format. If you wish to use your mobile device camera, then make...
Words: 363 - Pages: 2
...Welcome to OPERATIONS MANAGEMENT Operations Management is important, exciting, challenging, and everywhere your look! Important, because it’s concerned with creating all of the products and services upon which we depend. Exciting, because it’s at the centre of so many of the changes affecting the world of business. Challenging, because the solutions that we find need to work globally and responsibly within society and the environment. And everywhere, because every service and product that you use – the cereal you eat at breakfast, the chair you sit on, and the radio station you listen to while you eat – is the result of an operation or process. Our aim in writing Operations Management is to give you a comprehensive understanding of the issues and techniques of operations management, and to help you get a great final result in your course. Here’s how you might make the most of the text: ● Get ahead with the latest developments – from the up-to-the-minute Operations in practice features in every chapter to the focus on corporate social responsibility in the final chapter – these put you at the cutting edge. ● Use the Worked examples and Problems and applications to improve your use of key quantitative and qualitative techniques, and work your way to better grades in your assignments and exams. ● Follow up on the recommended readings at the end of each chapter. They’re specially selected to enhance your learning and give you an edge in your course...
Words: 12297 - Pages: 50
...Programme OPERATIONS MANAGEMENT ASSIGNMENT OCTOBER 2010 – SEPTEMBER 2011 Sections: Page 1 Course Overview 2 2 Assignment topics 4 3 Writing up your assignment (Individual or Group) 7 4 Guide to approaching case studies 12 Class title Operations Management Credits 10 Class aims Operations Management refers to those activities which are more or less directly concerned with the creation and delivery of goods and services. The course is intended to give you a theoretical framework for thinking about operations in both manufacturing and service contexts and to describe some practical applications of operations management. In the course we will address key aspects of design, planning and control of operations systems, and to provide an understanding of the operations function in a global context. Learning outcomes Subject specific knowledge and skills including: • Understand the history of Operations Management as a subject and consider the challenges facing Operations in future with particular reference to service operations, value adding and sustainable competition. • Understand the need for an Operations Strategy to operate with a Business Strategy • Describe Operational strategies in terms of Fit, Sustainability and Risk • Assess the choices and trade-offs inherent in developing an operations strategy (assessment of alternative strategies) • Describe the nature of operations as an...
Words: 4902 - Pages: 20
...Chapter 1: Introduction to Operation Management 1. Define operations management. Operations management is the business function that is responsible for managing and coordinating the resources needed to produce a company’s products and services. Without operations management there would be no products or services to sell. 2. Explain the role of operations management in business. The role of operations management is to transform organizational inputs—human resources, facilities, materials, technology, and information—into a company’s finished goods or services. 3. Describe decisions that operations managers make. Operations management is responsible for a wide range of decisions, ranging from strategic decisions, such as designing the unique features of a product and process, to tactical decisions, such as planning worker schedules. 4. Describe the differences between service and manufacturing operations. Organizations can be divided into manufacturing and service operations, which differ in the tangibility of the product and the degree of customer contact. Manufacturing and service operations have very different operational requirements. 5. Identify major historical developments in operations management. A number of historical milestones have shaped operations management into what it is today. Some of the more significant of these are the Industrial Revolution, scientific management, the human relations movement, management...
Words: 1663 - Pages: 7
...Respondents According to Years in Operations 27 2 Frequency of Respondents According to Forms of Ownership 28 3 Frequency of Respondents According to Educational Attainment 28 4 Frequency of Respondents According to Number of Employees 29 5 Management of Raw Materials 29 6 Management of Finished Goods 30 7 Controlling the Quality of Raw Materials 32 8 Cost Control Strategies 33 9 Effectiveness of Cost Control Strategies 35 10 Using Budget as a Cost Control Strategies 35 11 Managing the Quality of Products 36 12 Meeting Customer’s Expectation 38 13 Standards in Meeting Quality 38 14 Ensuring Smooth Production Process 40 15 Supervision of the Production Process 42 16 Criteria in Hiring Workers 43 17 Assessing the Skill of Workers 44 18 Evaluating Performance of Workers 44 19 Importance of Skills 45 20 Motivating and Training Workers 46 21 Problems Encountered 48 CHAPTER I THE PROBLEM AND ITS BACKGROUND Rationale Operations management is a vital part of every organization (Chen et al, 2012). Every kind of business, whether it is purely service, a business merchandise, or a manufacturing needs people who have practical knowledge of how to manage and handle its operations efficiently and effectively. The proper management, design and improvement of...
Words: 12055 - Pages: 49
...Operations performance objectives This first point made in this section is that operations objectives are very broad. Operations management has an impact on the five broad categories of stakeholders in any organisation. Stakeholders is a broad term but is generally used to mean anybody who could have an interest in, or is affected by, the operation. The five groups are: * Customers - These are the most obvious people who will be affected by any business. What the chapter goes on to call the five operations performance objectives apply primarily to this group of people. * Suppliers - Operations can have a major impact on suppliers, both on how they prosper themselves, and on how effective they are at supplying the operation. * Shareholders - Clearly, the better an operation is at producing goods and services, the more likely the whole business is to prosper and shareholders will be one of the major beneficiaries of this. * Employees - Similarly, employees will be generally better off if the company is prosperous; if only because they are more likely to be employed in the future. However operations responsibilities to employees go far beyond this. It includes the general working conditions which are determined by the way the operation has been designed. * Society - Although often having no direct economic connection with the company, individuals and groups in society at large can be impacted by the way its operations managers behave. The most obvious example...
Words: 1318 - Pages: 6
...Operations performance objectives This first point made in this section is that operations objectives are very broad. Operations management has an impact on the five broad categories of stakeholders in any organisation. Stakeholders is a broad term but is generally used to mean anybody who could have an interest in, or is affected by, the operation. The five groups are: * Customers - These are the most obvious people who will be affected by any business. What the chapter goes on to call the five operations performance objectives apply primarily to this group of people. * Suppliers - Operations can have a major impact on suppliers, both on how they prosper themselves, and on how effective they are at supplying the operation. * Shareholders - Clearly, the better an operation is at producing goods and services, the more likely the whole business is to prosper and shareholders will be one of the major beneficiaries of this. * Employees - Similarly, employees will be generally better off if the company is prosperous; if only because they are more likely to be employed in the future. However operations responsibilities to employees go far beyond this. It includes the general working conditions which are determined by the way the operation has been designed. * Society - Although often having no direct economic connection with the company, individuals and groups in society at large can be impacted by the way its operations managers behave. The most obvious example is in...
Words: 1357 - Pages: 6
...Chapter Solutions Operations Management.pdf DOWNLOAD HERE CHAPTER 12: INVENTORY MANAGEMENT – Suggested Solutions to ... http://users.ipfw.edu/khamaljn/P301/Class_Notes/Solutions-Chapter12.pdf 1 BUS P301:01 CHAPTER 12: INVENTORY MANAGEMENT – Suggested Solutions to Selected Questions Summer II, 2009 Question 12.5 This is EOQ with D = 19,500 units/yr; H = $ ... CHAPTER 11 Operations Management http://www.eng.uwi.tt/depts/mech/ugrad/courses/meng3006/Week09b.pdf Operations Management, ... • To decouple operations ... CHAPTER 11 11-39 Inventory Management Economic Production Quantity I n v en t o r y L ev el CHAPTER 10 Operations Management - Academic Resources at ... http://academic.missouriwestern.edu/mlewis14/MGT%20416/Lectures/My%20Chap010.pdf Operations Management 8th edition 10-2 Quality Control CHAPTER 10 Quality Control McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson PRODUCTION/OPERATIONS MANAGEMENT - … http://faculty-staff.ou.edu/B/Samir.Barman-1/POMsp02.doc PRODUCTION/OPERATIONS MANAGEMENT. BAD 5262 . SPRING 2002. Course Instructor: Samir Barman, Ph.D. ... Apr 02 Chapter 3 All Example Problems. Operations in a PR: 3.1-3.6 Chapter 7 Accounting for Financial Management http://harbert.auburn.edu/~yostkev/teaching/finc3630/notes/Chapter7solutions.pdf Chapter 7 Accounting for Financial Management ANSWERS TO END-OF-CHAPTER QUESTIONS 7-3 No, because the $20 million of retained earnings would probably not be held as cash...
Words: 852 - Pages: 4
