SlideShare una empresa de Scribd logo
1 de 50
Descargar para leer sin conexión
Chapter 18ii 2011
Management: Arab World Edition
Robbins, Coulter, Sidani, Jamali
Chapter 18: Managing Operations
Lecturer: : [Insert your name here]
Learning Outcomes

Follow this Learning Outline as you read and study this chapter.
18.1 The Role of Operations Management

• Define operations management.
• Contrast manufacturing and services organizations.
• Describe the managers’ role in improving productivity.
• Discuss the strategic role of operations management.
18.2 What Is Value Chain Management and Why Is It
Important?

• Define value chain and value chain management.
• Describe the goal of value chain management.
• Describe the benefits of successful value chain management.
18-3

Copyright © 2011 Pearson Education
Learning Outcomes
18.3 Managing Operations by Using Value Chain
Management

• Discuss the requirements for successful value chain
management.

• Explain the obstacles to value chain management.
18.4 Current Issues in Operations Management

• Discuss technology’s role in manufacturing.
• Explain ISO 9000 and Six Sigma.
• Describe mass customization and how operations management
contributes to it.
18-4

Copyright © 2011 Pearson Education
The Role of Operations
Management
1. Define operations management.
2. Contrast manufacturing and services organizations.

3. Describe the managers’ role in improving productivity.
4. Discuss the strategic role of operations management.

18-5

Copyright © 2011 Pearson Education
What Is Operations Management?
– Operations

Management refers to the design, operation, and
control of the transformation process that converts such resources
as labor and raw materials into goods and services that are sold to
customers.

18-6

Copyright © 2011 Pearson Education
The Importance of Operations Management
– It

encompasses both services and manufacturing.

– It

is important in effectively and efficiently managing productivity.

– It

plays a strategic role in an organization’s competitive success.

18-7

Copyright © 2011 Pearson Education
Exhibit 18–1

18-8

Copyright © 2011 Pearson Education

The Operations System
Manufacturing and Services
Manufacturing Organizations
– Use

operations management in the transformation process of turning
raw materials into physical goods.

Service Organizations
– Use

operations management in creating non-physical outputs in the
form of services (the activities of employees interacting with
customers).

18-9

Copyright © 2011 Pearson Education
Managing Productivity
Productivity
– The

overall output of goods or services produced divided by the
inputs needed to generate that output.

–A

18-10

combination of people and operations variables.

Copyright © 2011 Pearson Education
Managing Productivity (cont’d)
Benefits of Increased Productivity
– Economic
– Higher

wages and profits without inflation

– Increased

18-11

growth and development
competitive capability due to lower costs

Copyright © 2011 Pearson Education
Exhibit 18–2
Deming’s 14 Points for Improving Productivity
1. Plan for the long-term future.

7.

2. Never be complacent concerning
the quality of your product.

Raise the quality of your line
supervisors.

8.

Drive out fear.

3. Establish statistical control over
your production processes and
require your suppliers to do so
as well.

9.

Encourage departments to work
closely together rather than to
concentrate on departmental or
divisional distinctions.

4. Deal with the best and fewest
number of suppliers.

10. Do not adopt strictly numerical
goals.

5. Find out whether your problems
are confined to particular parts
of the production process or
stem from the overall process
itself.

11. Require your workers to do
quality work.

6. Train workers for the job that
you are asking them to perform.
Source: W.E. Deming, ―Improvement of Quality and Productivity Through
Action by Management,‖ National Productivity Review, Winter 1981–1982,
pp. 12–22. With permission. Copyright 1981 by Executive Enterprises,
Inc., 22 West 21st St., New York, NY 10010-6904. All rights reserved.
18-12

Copyright © 2011 Pearson Education

12. Train your employees to
understand statistical methods.
13. Train your employees in new
skills as the need arises.

14. Make top managers responsible
for implementing these principles.
Strategic Role of Operations Management
– The

era of modern manufacturing began in the U.S. over 100
years ago.

– After

WWII, U.S. manufacturers focused on functional areas other
than manufacturing.

18-13

Copyright © 2011 Pearson Education
Strategic Role of Operations Management
(cont’d)
– By

the 1970’s, German and Japanese competitors integrated
manufacturing technologies were producing quality goods at lower
costs.

– Today,

successful organizations recognize the crucial role that
operations management plays as part of the overall organizational
strategy to establish and maintain global leadership planning.

18-14

Copyright © 2011 Pearson Education
What Is Value Chain
Management and Why Is It
Important?
1. Define value chain and value chain management.
2. Describe the goal of value chain management.
3. Describe the benefits of successful value chain management.

18-15

Copyright © 2011 Pearson Education
Value Chain Management
Value
–

18-16

The performance characteristics, features and attributes, and any
other aspects of goods and services for which customers are
willing to give up resources (i.e., spend money).

Copyright © 2011 Pearson Education
Value Chain Management (cont’d)
The Value Chain
– The

entire series of organizational work activities that add value
at each step beginning with the processing of raw materials and
ending with the finished product in the hands of end users.

18-17

Copyright © 2011 Pearson Education
What is Value Chain Management?
Value Chain Management
– The

process of managing the entire sequence of integrated
activities and information about product flows along the entire
value chain.

18-18

Copyright © 2011 Pearson Education
Goal of Value Chain Management
– To

create a value chain strategy that fully integrates all members
into a seamless chain that meets and exceeds customers’ needs and
creates the highest value for the customer.

18-19

Copyright © 2011 Pearson Education
Benefits of Value Chain Management

Improved
Procurement

Improved
Logistics

Benefits of
Value Change
Management
Enhanced
Customer Order
Management

18-20

Copyright © 2011 Pearson Education

Improved
Product
Development
Managing Operations by
Using Value Chain
Management
1. Discuss the requirements for successful value chain
management.
2. Explain the obstacles to value chain management.

18-21

Copyright © 2011 Pearson Education
Exhibit 18–3 Value Chain Strategy Requirements

18-22

Copyright © 2011 Pearson Education
Requirements for Value Chain Management
Coordination and collaboration




Sharing information and being flexible throughout the value
chain.



18-23

Collaborative relationships must exist among all chain
participants.

Requires open communication among the various value chain
partners.

Copyright © 2011 Pearson Education
Requirements for Value Chain Management
(cont’d)
Investment in information technology




18-24

Successful value chain management is not possible without a
significant investment in information technology.
Information technology can be used to restructure the value
chain to better serve end users.

Copyright © 2011 Pearson Education
Requirements for Value Chain Management
(cont’d)
Changes in organizational processes




Non-value-adding activities should be eliminated.



Better demand forecasting is necessary and possible because of
closer ties with customers and suppliers.



Selected functions may need to be done collaboratively with other
partners in the value chain.



18-25

Organizational processes must be critically evaluated, from
beginning to end, to see where value is being added.

New measures are needed for evaluating performance of various
activities along the value chain.

Copyright © 2011 Pearson Education
Requirements for Value Chain Management
(cont’d)
Committed leadership




A culture focused on superb customer value requires serious
leadership commitment.



Managers need to outline expectations for what is involved in
value chain management.



18-26

Value chain management requires managers’ continuous support,
facilitation, and promotion.

Managers should clarify expectations regarding each employee’s
role in the value chain.

Copyright © 2011 Pearson Education
Requirements for Value Chain Management
(cont’d)
Employees/Human Resources

Design jobs that are flexible.


Hire employees who have the ability to learn and adapt.



Employees need to learn:



how to improve the flow of materials throughout the chain,



how to identify activities that add value,



how to make better decisions faster, or



18-27

how to use information technology software,

how to improve any number of other potential work activities.

Copyright © 2011 Pearson Education
Requirements for Value Chain Management
(cont’d)
Organizational culture and attitudes


Cultural attitudes include:



openness



flexibility



mutual respect



18-28

collaborating





sharing

trust

Attitudes encompass external partners as well.

Copyright © 2011 Pearson Education
Exhibit 18–4
Obstacles to Successful Value Chain Management

18-29

Copyright © 2011 Pearson Education
Obstacles to Value Chain Management
Organizational barriers
– Refusal

or reluctance to share information

– Reluctance
– Security

18-30

to shake up the status quo

issues

Copyright © 2011 Pearson Education
Obstacles to Value Chain Management (cont’d)
Cultural attitudes
– Lack

of trust and too much trust

– Fear

of loss of decision-making power

Required capabilities
– Lacking

or failing to develop the requisite value chain
management skills

18-31

Copyright © 2011 Pearson Education
Obstacles to Value Chain Management (cont’d)
People
– Lacking

commitment to do whatever it takes

– Refusing

to be flexible in meeting the demands of a changing

situation
– Not

being motivated to perform at a high level

– Lack

18-32

of trained managers to lead value chain initiatives

Copyright © 2011 Pearson Education
Current Issues in Operations
Management
1. Discuss technology’s role in manufacturing.
2. Explain ISO 9000 and Six Sigma.
3. Describe mass customization and how operations
management contributes to it.

18-33

Copyright © 2011 Pearson Education
Technology’s Role in Manufacturing
– Smart

companies are looking at ways to use technology to
improve operations management.

– To

connect more closely with customers, production must be
synchronized (i.e. well-coordinated) across the enterprise.

18-34

Copyright © 2011 Pearson Education
Technology’s Role in Manufacturing (cont’d)
– To

avoid bottlenecks and slowdowns, the production function must
be a full partner in the entire business system.

– Technology

18-35

is making such extensive collaboration possible.

Copyright © 2011 Pearson Education
Technology’s Role in Manufacturing (cont’d)
– Increased

automation and integration of production facilities
with business systems also helps in controlling costs.

– Predictive

maintenance, remote diagnostics, and utility cost

savings

18-36

Copyright © 2011 Pearson Education
The Concept of Quality
– The

ability of a product or service to reliably do what it’s supposed
to do and to satisfy customer expectations.

18-37

Copyright © 2011 Pearson Education
Exhibit 18–5

Product Quality Dimensions

1. Performance – Operating characteristics
2. Features – Important special characteristics
3. Flexibility – Meeting operating specifications over some
period of time
4. Durability – Amount of use before performance deteriorates

5. Conformance – Match with pre-established standards
6. Serviceability – Ease and speed of repair or normal service
7. Aesthetics – How a product looks and feels

8. Perceived quality – Subjective assessment of characteristics
(product image)
Sources: Adapted from J.W. Dean, Jr., and J.R. Evans, Total Quality: Management, Organization and Society (St. Paul, MN: West Publishing Company, 1994); H.V.
Roberts and B.F. Sergesketter, Quality is Personal (New York: The Free Press, 1993): D. Garvin, Managed Quality: The Strategic and Competitive Edge (New York: The
Free Press, 1988); and M.A. Hitt, R.D. Ireland, and R.E. Hoskisson, Strategic Management, 4th ed. (Cincinnati, OH: SouthWestern, 2001), p. 211.
18-38

Copyright © 2011 Pearson Education
Exhibit 18–5 (cont’d) Service Quality Dimensions
1.

Timeliness – Performed in promised period of time

2.

Courtesy – Performed cheerfully

3.

Consistency – Giving all customers similar experiences
each time

4.

Convenience – Accessibility to customers

5.

Completeness – Fully serviced, as required

6.

Accuracy – Performed correctly each time

Sources: Adapted from J.W. Dean, Jr., and J.R. Evans, Total Quality: Management, Organization and Society (St. Paul, MN: West Publishing Company, 1994); H.V.
Roberts and B.F. Sergesketter, Quality is Personal (New York: The Free Press, 1993): D. Garvin, Managed Quality: The Strategic and Competitive Edge (New York: The
Free Press, 1988); and M.A. Hitt, R.D. Ireland, and R.E. Hoskisson, Strategic Management, 4th ed. (Cincinnati, OH: SouthWestern, 2001), p. 211.
18-39

Copyright © 2011 Pearson Education
Quality initiatives and Quality Goals
Quality Initiatives
– Planning

for quality

– Organizing

and leading for quality

– Controlling

for quality

Quality Goals
– ISO
– Six

18-40

9000 certification
Sigma standards

Copyright © 2011 Pearson Education
Quality Initiatives – 1
Planning for quality
– Managers

must have quality improvement goals and
strategies and plans to achieve those goals.

– Goals

can help focus everyone’s attention on some objective
quality standard.

18-41

Copyright © 2011 Pearson Education
Quality Initiatives – 2
Organizing and leading for quality
– Because

quality improvement initiatives are carried out by
employees, managers need to look at how they can best organize
and lead them.

– Organizations

with extensive and successful quality improvement
programs tend to rely on two important people approaches:
– (1)
– (2)

18-42

cross-functional work teams; and
self-directed, or empowered, work teams.

Copyright © 2011 Pearson Education
Quality Initiatives – 3
Controlling for quality
– Quality

improvement initiatives are not possible without a means
of monitoring and evaluating their progress.

– This

involves implementing many standards such as those
related to inventory control, defect rate, raw materials
procurement, or other operations management areas.

18-43

Copyright © 2011 Pearson Education
Quality Goals – ISO 9000 certification
– ISO

9000 is a series of international quality management
standards established by the International Organization for
Standardization which sets uniform guidelines for processes to
ensure that products conform to customer requirements.

– These

standards cover everything from contract review to
product design to product delivery.

18-44

Copyright © 2011 Pearson Education
Quality Goals – ISO 9000 certification (cont’d)
– The

ISO 9000 standards have become the internationally
recognized standard for evaluating and comparing companies
in the global marketplace.

– This

type of certification can be a prerequisite for doing business
globally.

18-45

Copyright © 2011 Pearson Education
Quality Goals – Six Sigma
– Six

Sigma is a quality standard that establishes a goal of no more
than 3.4 defects per million units or procedures.

– Sigma

is a Greek letter used in statistics. The higher the sigma, the
fewer the deviations from the norm—that is, the fewer the defects.

– At

Six Sigma, you are about as close to defect free as you can get. It
is an ambitious quality goal!

– Many

quality-driven businesses are using it and benefiting from it
including many in the Arab region.

18-46

Copyright © 2011 Pearson Education
Mass Customization
– Is

a design-to-order concept that provides consumers with a
product when, where, and how they want it.

– Makes

heavy use of technology (flexible manufacturing techniques)
and engages in a continual dialogue with customers.

18-47

Copyright © 2011 Pearson Education
Benefits of Mass Customization
– Creates

an important relationship between the firm and the
customer in providing loyalty-building value to the customer and in
garnering valuable market information for the firm.

18-48

Copyright © 2011 Pearson Education
Terms to Know
operations management

intellectual property

manufacturing organizations

quality

service organizations

ISO 9000

productivity

Six Sigma

value

mass customization

value chain

Cellular manufacturing

value chain management

organizational processes
RFID

18-49

Copyright © 2011 Pearson Education
18-50

Copyright © 2011 Pearson Education

Más contenido relacionado

La actualidad más candente

Chapter 17 management (10 th edition) by robbins and coulter
Chapter 17 management (10 th edition) by robbins and coulterChapter 17 management (10 th edition) by robbins and coulter
Chapter 17 management (10 th edition) by robbins and coulterMd. Abul Ala
 
Chapter 19 Ppt19
Chapter 19 Ppt19Chapter 19 Ppt19
Chapter 19 Ppt19D
 
Chapter 9 management (10 th edition) by robbins and coulter
Chapter 9 management (10 th edition) by robbins and coulterChapter 9 management (10 th edition) by robbins and coulter
Chapter 9 management (10 th edition) by robbins and coulterMd. Abul Ala
 
Ch 7 foundations of planning
Ch 7 foundations of planningCh 7 foundations of planning
Ch 7 foundations of planningNardin A
 
Griffinchap01 110410121102-phpapp02
Griffinchap01 110410121102-phpapp02Griffinchap01 110410121102-phpapp02
Griffinchap01 110410121102-phpapp02Rong Mohol
 
Robbins9 ppt07
Robbins9 ppt07Robbins9 ppt07
Robbins9 ppt07umar0007
 
Robbins9 ppt08
Robbins9 ppt08Robbins9 ppt08
Robbins9 ppt08umar0007
 
Robbins9 ppt18
Robbins9 ppt18Robbins9 ppt18
Robbins9 ppt18umar0007
 
Management Chapter02
Management Chapter02Management Chapter02
Management Chapter02WanBK Leo
 
Chapter 13 management (10 th edition) by robbins and coulter
Chapter 13 management (10 th edition) by robbins and coulterChapter 13 management (10 th edition) by robbins and coulter
Chapter 13 management (10 th edition) by robbins and coulterMd. Abul Ala
 
Chapter 9 Planning Tools Techniques Ppt09
Chapter 9 Planning Tools Techniques Ppt09Chapter 9 Planning Tools Techniques Ppt09
Chapter 9 Planning Tools Techniques Ppt09D
 
Chapter 10ii 2010
Chapter 10ii 2010Chapter 10ii 2010
Chapter 10ii 2010Nardin A
 
Chapter 12 management (9 th edition) by robbins and coulter
Chapter 12 management (9 th edition) by robbins and coulterChapter 12 management (9 th edition) by robbins and coulter
Chapter 12 management (9 th edition) by robbins and coulterMd. Abul Ala
 
Chapter 7 management (10 th edition) by robbins and coulter
Chapter 7 management (10 th edition) by robbins and coulterChapter 7 management (10 th edition) by robbins and coulter
Chapter 7 management (10 th edition) by robbins and coulterMd. Abul Ala
 
Chapter 10 management (10 th edition) by robbins and coulter
Chapter 10 management (10 th edition) by robbins and coulterChapter 10 management (10 th edition) by robbins and coulter
Chapter 10 management (10 th edition) by robbins and coulterMd. Abul Ala
 

La actualidad más candente (20)

Chapter 17 management (10 th edition) by robbins and coulter
Chapter 17 management (10 th edition) by robbins and coulterChapter 17 management (10 th edition) by robbins and coulter
Chapter 17 management (10 th edition) by robbins and coulter
 
Chapter 19 Ppt19
Chapter 19 Ppt19Chapter 19 Ppt19
Chapter 19 Ppt19
 
Chapter 9 management (10 th edition) by robbins and coulter
Chapter 9 management (10 th edition) by robbins and coulterChapter 9 management (10 th edition) by robbins and coulter
Chapter 9 management (10 th edition) by robbins and coulter
 
Ch 7 foundations of planning
Ch 7 foundations of planningCh 7 foundations of planning
Ch 7 foundations of planning
 
Management ch19
Management ch19Management ch19
Management ch19
 
Griffinchap01 110410121102-phpapp02
Griffinchap01 110410121102-phpapp02Griffinchap01 110410121102-phpapp02
Griffinchap01 110410121102-phpapp02
 
Management ch10
Management ch10Management ch10
Management ch10
 
Robbins9 ppt07
Robbins9 ppt07Robbins9 ppt07
Robbins9 ppt07
 
Robbins9 ppt08
Robbins9 ppt08Robbins9 ppt08
Robbins9 ppt08
 
Robbins9 ppt18
Robbins9 ppt18Robbins9 ppt18
Robbins9 ppt18
 
Management Chapter02
Management Chapter02Management Chapter02
Management Chapter02
 
Management ch8
Management ch8Management ch8
Management ch8
 
Chapter 13 management (10 th edition) by robbins and coulter
Chapter 13 management (10 th edition) by robbins and coulterChapter 13 management (10 th edition) by robbins and coulter
Chapter 13 management (10 th edition) by robbins and coulter
 
Management ch9
Management ch9Management ch9
Management ch9
 
Chapter 9 Planning Tools Techniques Ppt09
Chapter 9 Planning Tools Techniques Ppt09Chapter 9 Planning Tools Techniques Ppt09
Chapter 9 Planning Tools Techniques Ppt09
 
Chapter 10ii 2010
Chapter 10ii 2010Chapter 10ii 2010
Chapter 10ii 2010
 
Chapter 12 management (9 th edition) by robbins and coulter
Chapter 12 management (9 th edition) by robbins and coulterChapter 12 management (9 th edition) by robbins and coulter
Chapter 12 management (9 th edition) by robbins and coulter
 
Chapter 7 management (10 th edition) by robbins and coulter
Chapter 7 management (10 th edition) by robbins and coulterChapter 7 management (10 th edition) by robbins and coulter
Chapter 7 management (10 th edition) by robbins and coulter
 
Management ch13
Management ch13Management ch13
Management ch13
 
Chapter 10 management (10 th edition) by robbins and coulter
Chapter 10 management (10 th edition) by robbins and coulterChapter 10 management (10 th edition) by robbins and coulter
Chapter 10 management (10 th edition) by robbins and coulter
 

Destacado

Chapter 16
Chapter 16 Chapter 16
Chapter 16 Nardin A
 
chapter 14 manager and communication
chapter 14 manager and communicationchapter 14 manager and communication
chapter 14 manager and communicationNardin A
 
Chapter 18 pricing for international markets
Chapter 18 pricing for international marketsChapter 18 pricing for international markets
Chapter 18 pricing for international marketsNardin A
 
Ch 1 introduction to management and organizations mgt arab world edition
Ch 1 introduction to management and organizations   mgt arab world editionCh 1 introduction to management and organizations   mgt arab world edition
Ch 1 introduction to management and organizations mgt arab world editionNardin A
 
Chapter 6: Managers as Decision Makers
Chapter 6: Managers as Decision MakersChapter 6: Managers as Decision Makers
Chapter 6: Managers as Decision MakersNardin A
 
Chapter 8: Strategic Management
Chapter 8: Strategic ManagementChapter 8: Strategic Management
Chapter 8: Strategic ManagementNardin A
 
Chapter 7: Foundations of Planning
Chapter 7: Foundations of PlanningChapter 7: Foundations of Planning
Chapter 7: Foundations of PlanningNardin A
 
Chapter 2: Management History
Chapter 2: Management HistoryChapter 2: Management History
Chapter 2: Management HistoryNardin A
 
Ch 1 introduction to management and organizations
Ch 1 introduction to management and organizationsCh 1 introduction to management and organizations
Ch 1 introduction to management and organizationsNardin A
 
Chapter 14 international marketing channels
Chapter 14 international marketing channelsChapter 14 international marketing channels
Chapter 14 international marketing channelsNardin A
 
Ch 2 Management History
Ch 2 Management HistoryCh 2 Management History
Ch 2 Management HistoryNardin A
 
Chapter 3 management (9 th edition) by robbins and coulter
Chapter 3 management (9 th edition) by robbins and coulterChapter 3 management (9 th edition) by robbins and coulter
Chapter 3 management (9 th edition) by robbins and coulterMd. Abul Ala
 
Chapter 3 The Research Process: The broad problem area and defining the pro...
Chapter 3 The Research Process: The broad  problem area and defining the  pro...Chapter 3 The Research Process: The broad  problem area and defining the  pro...
Chapter 3 The Research Process: The broad problem area and defining the pro...Nardin A
 
Ch 5 social responsibility and managerial ethics
Ch 5 social responsibility and managerial ethicsCh 5 social responsibility and managerial ethics
Ch 5 social responsibility and managerial ethicsNardin A
 
Introduction to Management and Organizations
Introduction to Management and OrganizationsIntroduction to Management and Organizations
Introduction to Management and OrganizationsZereen Akm
 
Nigeria: The Petroleum Industry Bill
Nigeria: The Petroleum Industry Bill Nigeria: The Petroleum Industry Bill
Nigeria: The Petroleum Industry Bill Perkins Abaje
 
BMS_Petroleum Mgt_Sonjai Kumar (Aviva)
BMS_Petroleum Mgt_Sonjai Kumar (Aviva)BMS_Petroleum Mgt_Sonjai Kumar (Aviva)
BMS_Petroleum Mgt_Sonjai Kumar (Aviva)Sonjai Kumar, SIRM
 

Destacado (20)

Chapter 16
Chapter 16 Chapter 16
Chapter 16
 
chapter 14 manager and communication
chapter 14 manager and communicationchapter 14 manager and communication
chapter 14 manager and communication
 
Chapter 18 pricing for international markets
Chapter 18 pricing for international marketsChapter 18 pricing for international markets
Chapter 18 pricing for international markets
 
Ch 1 introduction to management and organizations mgt arab world edition
Ch 1 introduction to management and organizations   mgt arab world editionCh 1 introduction to management and organizations   mgt arab world edition
Ch 1 introduction to management and organizations mgt arab world edition
 
Chapter 6: Managers as Decision Makers
Chapter 6: Managers as Decision MakersChapter 6: Managers as Decision Makers
Chapter 6: Managers as Decision Makers
 
Chapter 8: Strategic Management
Chapter 8: Strategic ManagementChapter 8: Strategic Management
Chapter 8: Strategic Management
 
Chapter 7: Foundations of Planning
Chapter 7: Foundations of PlanningChapter 7: Foundations of Planning
Chapter 7: Foundations of Planning
 
Chapter 2: Management History
Chapter 2: Management HistoryChapter 2: Management History
Chapter 2: Management History
 
Ch 1 introduction to management and organizations
Ch 1 introduction to management and organizationsCh 1 introduction to management and organizations
Ch 1 introduction to management and organizations
 
Chapter 14 international marketing channels
Chapter 14 international marketing channelsChapter 14 international marketing channels
Chapter 14 international marketing channels
 
Ch 2 Management History
Ch 2 Management HistoryCh 2 Management History
Ch 2 Management History
 
Chapter 3 management (9 th edition) by robbins and coulter
Chapter 3 management (9 th edition) by robbins and coulterChapter 3 management (9 th edition) by robbins and coulter
Chapter 3 management (9 th edition) by robbins and coulter
 
Chapter 3 The Research Process: The broad problem area and defining the pro...
Chapter 3 The Research Process: The broad  problem area and defining the  pro...Chapter 3 The Research Process: The broad  problem area and defining the  pro...
Chapter 3 The Research Process: The broad problem area and defining the pro...
 
Ch 5 social responsibility and managerial ethics
Ch 5 social responsibility and managerial ethicsCh 5 social responsibility and managerial ethics
Ch 5 social responsibility and managerial ethics
 
Introduction to Management and Organizations
Introduction to Management and OrganizationsIntroduction to Management and Organizations
Introduction to Management and Organizations
 
Nigeria: The Petroleum Industry Bill
Nigeria: The Petroleum Industry Bill Nigeria: The Petroleum Industry Bill
Nigeria: The Petroleum Industry Bill
 
BMS_Petroleum Mgt_Sonjai Kumar (Aviva)
BMS_Petroleum Mgt_Sonjai Kumar (Aviva)BMS_Petroleum Mgt_Sonjai Kumar (Aviva)
BMS_Petroleum Mgt_Sonjai Kumar (Aviva)
 
Conducting
Conducting Conducting
Conducting
 
Fire fighting
Fire fightingFire fighting
Fire fighting
 
Creating brand equity
Creating brand equityCreating brand equity
Creating brand equity
 

Similar a Chapter 18ii 2011

Operation and value chain management
Operation and value chain managementOperation and value chain management
Operation and value chain managementAashray For Everyone
 
CHAPTER_1 Introduction to Operations Mangement.ppt
CHAPTER_1 Introduction to Operations Mangement.pptCHAPTER_1 Introduction to Operations Mangement.ppt
CHAPTER_1 Introduction to Operations Mangement.pptfouadbelal1
 
10erobbins ppt18 -_r
10erobbins ppt18 -_r10erobbins ppt18 -_r
10erobbins ppt18 -_rosamamallick
 
Chapter 19.ppt
Chapter 19.pptChapter 19.ppt
Chapter 19.pptReeDaSaeed
 
Chapter 1 introduction to production management
Chapter 1  introduction to production managementChapter 1  introduction to production management
Chapter 1 introduction to production managementalpha flores
 
Managing Growth in Advanced Manufacturing
Managing Growth in Advanced ManufacturingManaging Growth in Advanced Manufacturing
Managing Growth in Advanced ManufacturingLes Murray
 
Nonfinancial and Multiple Measures of Performance
Nonfinancial and Multiple Measures of PerformanceNonfinancial and Multiple Measures of Performance
Nonfinancial and Multiple Measures of PerformanceMengsongNguon
 
information system Ch 2
information system Ch 2information system Ch 2
information system Ch 2Mohamed Ali
 
Ippt chap001
Ippt chap001Ippt chap001
Ippt chap001IIUM
 
Principle and Practice of Management MGT Ippt chap001
Principle and Practice of Management MGT Ippt chap001Principle and Practice of Management MGT Ippt chap001
Principle and Practice of Management MGT Ippt chap001IIUM
 
Organization and Management Robbins & Coulter Chapter 8: Strategic Management
Organization and Management Robbins & Coulter Chapter 8: Strategic ManagementOrganization and Management Robbins & Coulter Chapter 8: Strategic Management
Organization and Management Robbins & Coulter Chapter 8: Strategic ManagementIrene Quintana
 
OM2E_Chapter01.ppt
OM2E_Chapter01.pptOM2E_Chapter01.ppt
OM2E_Chapter01.pptlloydshana4
 

Similar a Chapter 18ii 2011 (20)

Chap19
Chap19Chap19
Chap19
 
Chap1 operations iipm
Chap1 operations iipmChap1 operations iipm
Chap1 operations iipm
 
Operation and value chain management
Operation and value chain managementOperation and value chain management
Operation and value chain management
 
Management ch19 (2)
Management ch19 (2)Management ch19 (2)
Management ch19 (2)
 
CHAPTER_1 Introduction to Operations Mangement.ppt
CHAPTER_1 Introduction to Operations Mangement.pptCHAPTER_1 Introduction to Operations Mangement.ppt
CHAPTER_1 Introduction to Operations Mangement.ppt
 
10erobbins ppt18 -_r
10erobbins ppt18 -_r10erobbins ppt18 -_r
10erobbins ppt18 -_r
 
Chapter 19.ppt
Chapter 19.pptChapter 19.ppt
Chapter 19.ppt
 
Management ch19
Management ch19Management ch19
Management ch19
 
Chapter 1 introduction to production management
Chapter 1  introduction to production managementChapter 1  introduction to production management
Chapter 1 introduction to production management
 
Managing Growth in Advanced Manufacturing
Managing Growth in Advanced ManufacturingManaging Growth in Advanced Manufacturing
Managing Growth in Advanced Manufacturing
 
Nonfinancial and Multiple Measures of Performance
Nonfinancial and Multiple Measures of PerformanceNonfinancial and Multiple Measures of Performance
Nonfinancial and Multiple Measures of Performance
 
information system Ch 2
information system Ch 2information system Ch 2
information system Ch 2
 
Ch 2.pdf
Ch 2.pdfCh 2.pdf
Ch 2.pdf
 
Lec 01 om b 02 09-2015
Lec 01 om b  02 09-2015Lec 01 om b  02 09-2015
Lec 01 om b 02 09-2015
 
Ippt chap001
Ippt chap001Ippt chap001
Ippt chap001
 
Principle and Practice of Management MGT Ippt chap001
Principle and Practice of Management MGT Ippt chap001Principle and Practice of Management MGT Ippt chap001
Principle and Practice of Management MGT Ippt chap001
 
Organization and Management Robbins & Coulter Chapter 8: Strategic Management
Organization and Management Robbins & Coulter Chapter 8: Strategic ManagementOrganization and Management Robbins & Coulter Chapter 8: Strategic Management
Organization and Management Robbins & Coulter Chapter 8: Strategic Management
 
OM2E_Chapter01.ppt
OM2E_Chapter01.pptOM2E_Chapter01.ppt
OM2E_Chapter01.ppt
 
robbins9_ppt18.ppt
robbins9_ppt18.pptrobbins9_ppt18.ppt
robbins9_ppt18.ppt
 
robbins9_ppt18.ppt
robbins9_ppt18.pptrobbins9_ppt18.ppt
robbins9_ppt18.ppt
 

Más de Nardin A

Chapter 12 products and services for businesses
Chapter 12 products and services for businessesChapter 12 products and services for businesses
Chapter 12 products and services for businessesNardin A
 
Chapter 2 SCIENTIFIC INVESTIGATION
Chapter 2 SCIENTIFIC  INVESTIGATION Chapter 2 SCIENTIFIC  INVESTIGATION
Chapter 2 SCIENTIFIC INVESTIGATION Nardin A
 
Chapter 1 INTRODUCTION TO RESEARCH
Chapter 1 INTRODUCTION TO RESEARCH Chapter 1 INTRODUCTION TO RESEARCH
Chapter 1 INTRODUCTION TO RESEARCH Nardin A
 
Chapter 2 stakeholders, managers, and ethics
Chapter 2 stakeholders, managers, and ethicsChapter 2 stakeholders, managers, and ethics
Chapter 2 stakeholders, managers, and ethicsNardin A
 
Chapter 07 promoting services and educating customers
Chapter 07 promoting services and educating customersChapter 07 promoting services and educating customers
Chapter 07 promoting services and educating customersNardin A
 
Chapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue managementChapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue managementNardin A
 
Chapter 4 the u.s. federal reserve and the creation of money
Chapter 4 the u.s. federal reserve and the creation of moneyChapter 4 the u.s. federal reserve and the creation of money
Chapter 4 the u.s. federal reserve and the creation of moneyNardin A
 
Chapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsChapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsNardin A
 
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Nardin A
 
Chapter 1 Introduction
Chapter 1 IntroductionChapter 1 Introduction
Chapter 1 IntroductionNardin A
 
Ch 14 managers and communications
Ch 14 managers and communicationsCh 14 managers and communications
Ch 14 managers and communicationsNardin A
 
Ch 16 managers as leaders
Ch 16 managers as leadersCh 16 managers as leaders
Ch 16 managers as leadersNardin A
 
Ch 15 motivating employees
Ch 15 motivating employeesCh 15 motivating employees
Ch 15 motivating employeesNardin A
 
Ch 10 managing human resources
Ch 10 managing human resourcesCh 10 managing human resources
Ch 10 managing human resourcesNardin A
 
Ch 9 organizational structure and design
Ch 9 organizational structure and designCh 9 organizational structure and design
Ch 9 organizational structure and designNardin A
 

Más de Nardin A (15)

Chapter 12 products and services for businesses
Chapter 12 products and services for businessesChapter 12 products and services for businesses
Chapter 12 products and services for businesses
 
Chapter 2 SCIENTIFIC INVESTIGATION
Chapter 2 SCIENTIFIC  INVESTIGATION Chapter 2 SCIENTIFIC  INVESTIGATION
Chapter 2 SCIENTIFIC INVESTIGATION
 
Chapter 1 INTRODUCTION TO RESEARCH
Chapter 1 INTRODUCTION TO RESEARCH Chapter 1 INTRODUCTION TO RESEARCH
Chapter 1 INTRODUCTION TO RESEARCH
 
Chapter 2 stakeholders, managers, and ethics
Chapter 2 stakeholders, managers, and ethicsChapter 2 stakeholders, managers, and ethics
Chapter 2 stakeholders, managers, and ethics
 
Chapter 07 promoting services and educating customers
Chapter 07 promoting services and educating customersChapter 07 promoting services and educating customers
Chapter 07 promoting services and educating customers
 
Chapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue managementChapter 06 setting prices and implementing revenue management
Chapter 06 setting prices and implementing revenue management
 
Chapter 4 the u.s. federal reserve and the creation of money
Chapter 4 the u.s. federal reserve and the creation of moneyChapter 4 the u.s. federal reserve and the creation of money
Chapter 4 the u.s. federal reserve and the creation of money
 
Chapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and CharacteristicsChapter 3 Depository Institutions: Activities and Characteristics
Chapter 3 Depository Institutions: Activities and Characteristics
 
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
Chapter 2 Financial Institutions, Financial Intermediaries and Asset Manageme...
 
Chapter 1 Introduction
Chapter 1 IntroductionChapter 1 Introduction
Chapter 1 Introduction
 
Ch 14 managers and communications
Ch 14 managers and communicationsCh 14 managers and communications
Ch 14 managers and communications
 
Ch 16 managers as leaders
Ch 16 managers as leadersCh 16 managers as leaders
Ch 16 managers as leaders
 
Ch 15 motivating employees
Ch 15 motivating employeesCh 15 motivating employees
Ch 15 motivating employees
 
Ch 10 managing human resources
Ch 10 managing human resourcesCh 10 managing human resources
Ch 10 managing human resources
 
Ch 9 organizational structure and design
Ch 9 organizational structure and designCh 9 organizational structure and design
Ch 9 organizational structure and design
 

Último

MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 

Último (20)

MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 

Chapter 18ii 2011

  • 2. Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 18: Managing Operations Lecturer: : [Insert your name here]
  • 3. Learning Outcomes Follow this Learning Outline as you read and study this chapter. 18.1 The Role of Operations Management • Define operations management. • Contrast manufacturing and services organizations. • Describe the managers’ role in improving productivity. • Discuss the strategic role of operations management. 18.2 What Is Value Chain Management and Why Is It Important? • Define value chain and value chain management. • Describe the goal of value chain management. • Describe the benefits of successful value chain management. 18-3 Copyright © 2011 Pearson Education
  • 4. Learning Outcomes 18.3 Managing Operations by Using Value Chain Management • Discuss the requirements for successful value chain management. • Explain the obstacles to value chain management. 18.4 Current Issues in Operations Management • Discuss technology’s role in manufacturing. • Explain ISO 9000 and Six Sigma. • Describe mass customization and how operations management contributes to it. 18-4 Copyright © 2011 Pearson Education
  • 5. The Role of Operations Management 1. Define operations management. 2. Contrast manufacturing and services organizations. 3. Describe the managers’ role in improving productivity. 4. Discuss the strategic role of operations management. 18-5 Copyright © 2011 Pearson Education
  • 6. What Is Operations Management? – Operations Management refers to the design, operation, and control of the transformation process that converts such resources as labor and raw materials into goods and services that are sold to customers. 18-6 Copyright © 2011 Pearson Education
  • 7. The Importance of Operations Management – It encompasses both services and manufacturing. – It is important in effectively and efficiently managing productivity. – It plays a strategic role in an organization’s competitive success. 18-7 Copyright © 2011 Pearson Education
  • 8. Exhibit 18–1 18-8 Copyright © 2011 Pearson Education The Operations System
  • 9. Manufacturing and Services Manufacturing Organizations – Use operations management in the transformation process of turning raw materials into physical goods. Service Organizations – Use operations management in creating non-physical outputs in the form of services (the activities of employees interacting with customers). 18-9 Copyright © 2011 Pearson Education
  • 10. Managing Productivity Productivity – The overall output of goods or services produced divided by the inputs needed to generate that output. –A 18-10 combination of people and operations variables. Copyright © 2011 Pearson Education
  • 11. Managing Productivity (cont’d) Benefits of Increased Productivity – Economic – Higher wages and profits without inflation – Increased 18-11 growth and development competitive capability due to lower costs Copyright © 2011 Pearson Education
  • 12. Exhibit 18–2 Deming’s 14 Points for Improving Productivity 1. Plan for the long-term future. 7. 2. Never be complacent concerning the quality of your product. Raise the quality of your line supervisors. 8. Drive out fear. 3. Establish statistical control over your production processes and require your suppliers to do so as well. 9. Encourage departments to work closely together rather than to concentrate on departmental or divisional distinctions. 4. Deal with the best and fewest number of suppliers. 10. Do not adopt strictly numerical goals. 5. Find out whether your problems are confined to particular parts of the production process or stem from the overall process itself. 11. Require your workers to do quality work. 6. Train workers for the job that you are asking them to perform. Source: W.E. Deming, ―Improvement of Quality and Productivity Through Action by Management,‖ National Productivity Review, Winter 1981–1982, pp. 12–22. With permission. Copyright 1981 by Executive Enterprises, Inc., 22 West 21st St., New York, NY 10010-6904. All rights reserved. 18-12 Copyright © 2011 Pearson Education 12. Train your employees to understand statistical methods. 13. Train your employees in new skills as the need arises. 14. Make top managers responsible for implementing these principles.
  • 13. Strategic Role of Operations Management – The era of modern manufacturing began in the U.S. over 100 years ago. – After WWII, U.S. manufacturers focused on functional areas other than manufacturing. 18-13 Copyright © 2011 Pearson Education
  • 14. Strategic Role of Operations Management (cont’d) – By the 1970’s, German and Japanese competitors integrated manufacturing technologies were producing quality goods at lower costs. – Today, successful organizations recognize the crucial role that operations management plays as part of the overall organizational strategy to establish and maintain global leadership planning. 18-14 Copyright © 2011 Pearson Education
  • 15. What Is Value Chain Management and Why Is It Important? 1. Define value chain and value chain management. 2. Describe the goal of value chain management. 3. Describe the benefits of successful value chain management. 18-15 Copyright © 2011 Pearson Education
  • 16. Value Chain Management Value – 18-16 The performance characteristics, features and attributes, and any other aspects of goods and services for which customers are willing to give up resources (i.e., spend money). Copyright © 2011 Pearson Education
  • 17. Value Chain Management (cont’d) The Value Chain – The entire series of organizational work activities that add value at each step beginning with the processing of raw materials and ending with the finished product in the hands of end users. 18-17 Copyright © 2011 Pearson Education
  • 18. What is Value Chain Management? Value Chain Management – The process of managing the entire sequence of integrated activities and information about product flows along the entire value chain. 18-18 Copyright © 2011 Pearson Education
  • 19. Goal of Value Chain Management – To create a value chain strategy that fully integrates all members into a seamless chain that meets and exceeds customers’ needs and creates the highest value for the customer. 18-19 Copyright © 2011 Pearson Education
  • 20. Benefits of Value Chain Management Improved Procurement Improved Logistics Benefits of Value Change Management Enhanced Customer Order Management 18-20 Copyright © 2011 Pearson Education Improved Product Development
  • 21. Managing Operations by Using Value Chain Management 1. Discuss the requirements for successful value chain management. 2. Explain the obstacles to value chain management. 18-21 Copyright © 2011 Pearson Education
  • 22. Exhibit 18–3 Value Chain Strategy Requirements 18-22 Copyright © 2011 Pearson Education
  • 23. Requirements for Value Chain Management Coordination and collaboration   Sharing information and being flexible throughout the value chain.  18-23 Collaborative relationships must exist among all chain participants. Requires open communication among the various value chain partners. Copyright © 2011 Pearson Education
  • 24. Requirements for Value Chain Management (cont’d) Investment in information technology   18-24 Successful value chain management is not possible without a significant investment in information technology. Information technology can be used to restructure the value chain to better serve end users. Copyright © 2011 Pearson Education
  • 25. Requirements for Value Chain Management (cont’d) Changes in organizational processes   Non-value-adding activities should be eliminated.  Better demand forecasting is necessary and possible because of closer ties with customers and suppliers.  Selected functions may need to be done collaboratively with other partners in the value chain.  18-25 Organizational processes must be critically evaluated, from beginning to end, to see where value is being added. New measures are needed for evaluating performance of various activities along the value chain. Copyright © 2011 Pearson Education
  • 26. Requirements for Value Chain Management (cont’d) Committed leadership   A culture focused on superb customer value requires serious leadership commitment.  Managers need to outline expectations for what is involved in value chain management.  18-26 Value chain management requires managers’ continuous support, facilitation, and promotion. Managers should clarify expectations regarding each employee’s role in the value chain. Copyright © 2011 Pearson Education
  • 27. Requirements for Value Chain Management (cont’d) Employees/Human Resources Design jobs that are flexible.  Hire employees who have the ability to learn and adapt.  Employees need to learn:   how to improve the flow of materials throughout the chain,  how to identify activities that add value,  how to make better decisions faster, or  18-27 how to use information technology software, how to improve any number of other potential work activities. Copyright © 2011 Pearson Education
  • 28. Requirements for Value Chain Management (cont’d) Organizational culture and attitudes  Cultural attitudes include:   openness  flexibility  mutual respect  18-28 collaborating   sharing trust Attitudes encompass external partners as well. Copyright © 2011 Pearson Education
  • 29. Exhibit 18–4 Obstacles to Successful Value Chain Management 18-29 Copyright © 2011 Pearson Education
  • 30. Obstacles to Value Chain Management Organizational barriers – Refusal or reluctance to share information – Reluctance – Security 18-30 to shake up the status quo issues Copyright © 2011 Pearson Education
  • 31. Obstacles to Value Chain Management (cont’d) Cultural attitudes – Lack of trust and too much trust – Fear of loss of decision-making power Required capabilities – Lacking or failing to develop the requisite value chain management skills 18-31 Copyright © 2011 Pearson Education
  • 32. Obstacles to Value Chain Management (cont’d) People – Lacking commitment to do whatever it takes – Refusing to be flexible in meeting the demands of a changing situation – Not being motivated to perform at a high level – Lack 18-32 of trained managers to lead value chain initiatives Copyright © 2011 Pearson Education
  • 33. Current Issues in Operations Management 1. Discuss technology’s role in manufacturing. 2. Explain ISO 9000 and Six Sigma. 3. Describe mass customization and how operations management contributes to it. 18-33 Copyright © 2011 Pearson Education
  • 34. Technology’s Role in Manufacturing – Smart companies are looking at ways to use technology to improve operations management. – To connect more closely with customers, production must be synchronized (i.e. well-coordinated) across the enterprise. 18-34 Copyright © 2011 Pearson Education
  • 35. Technology’s Role in Manufacturing (cont’d) – To avoid bottlenecks and slowdowns, the production function must be a full partner in the entire business system. – Technology 18-35 is making such extensive collaboration possible. Copyright © 2011 Pearson Education
  • 36. Technology’s Role in Manufacturing (cont’d) – Increased automation and integration of production facilities with business systems also helps in controlling costs. – Predictive maintenance, remote diagnostics, and utility cost savings 18-36 Copyright © 2011 Pearson Education
  • 37. The Concept of Quality – The ability of a product or service to reliably do what it’s supposed to do and to satisfy customer expectations. 18-37 Copyright © 2011 Pearson Education
  • 38. Exhibit 18–5 Product Quality Dimensions 1. Performance – Operating characteristics 2. Features – Important special characteristics 3. Flexibility – Meeting operating specifications over some period of time 4. Durability – Amount of use before performance deteriorates 5. Conformance – Match with pre-established standards 6. Serviceability – Ease and speed of repair or normal service 7. Aesthetics – How a product looks and feels 8. Perceived quality – Subjective assessment of characteristics (product image) Sources: Adapted from J.W. Dean, Jr., and J.R. Evans, Total Quality: Management, Organization and Society (St. Paul, MN: West Publishing Company, 1994); H.V. Roberts and B.F. Sergesketter, Quality is Personal (New York: The Free Press, 1993): D. Garvin, Managed Quality: The Strategic and Competitive Edge (New York: The Free Press, 1988); and M.A. Hitt, R.D. Ireland, and R.E. Hoskisson, Strategic Management, 4th ed. (Cincinnati, OH: SouthWestern, 2001), p. 211. 18-38 Copyright © 2011 Pearson Education
  • 39. Exhibit 18–5 (cont’d) Service Quality Dimensions 1. Timeliness – Performed in promised period of time 2. Courtesy – Performed cheerfully 3. Consistency – Giving all customers similar experiences each time 4. Convenience – Accessibility to customers 5. Completeness – Fully serviced, as required 6. Accuracy – Performed correctly each time Sources: Adapted from J.W. Dean, Jr., and J.R. Evans, Total Quality: Management, Organization and Society (St. Paul, MN: West Publishing Company, 1994); H.V. Roberts and B.F. Sergesketter, Quality is Personal (New York: The Free Press, 1993): D. Garvin, Managed Quality: The Strategic and Competitive Edge (New York: The Free Press, 1988); and M.A. Hitt, R.D. Ireland, and R.E. Hoskisson, Strategic Management, 4th ed. (Cincinnati, OH: SouthWestern, 2001), p. 211. 18-39 Copyright © 2011 Pearson Education
  • 40. Quality initiatives and Quality Goals Quality Initiatives – Planning for quality – Organizing and leading for quality – Controlling for quality Quality Goals – ISO – Six 18-40 9000 certification Sigma standards Copyright © 2011 Pearson Education
  • 41. Quality Initiatives – 1 Planning for quality – Managers must have quality improvement goals and strategies and plans to achieve those goals. – Goals can help focus everyone’s attention on some objective quality standard. 18-41 Copyright © 2011 Pearson Education
  • 42. Quality Initiatives – 2 Organizing and leading for quality – Because quality improvement initiatives are carried out by employees, managers need to look at how they can best organize and lead them. – Organizations with extensive and successful quality improvement programs tend to rely on two important people approaches: – (1) – (2) 18-42 cross-functional work teams; and self-directed, or empowered, work teams. Copyright © 2011 Pearson Education
  • 43. Quality Initiatives – 3 Controlling for quality – Quality improvement initiatives are not possible without a means of monitoring and evaluating their progress. – This involves implementing many standards such as those related to inventory control, defect rate, raw materials procurement, or other operations management areas. 18-43 Copyright © 2011 Pearson Education
  • 44. Quality Goals – ISO 9000 certification – ISO 9000 is a series of international quality management standards established by the International Organization for Standardization which sets uniform guidelines for processes to ensure that products conform to customer requirements. – These standards cover everything from contract review to product design to product delivery. 18-44 Copyright © 2011 Pearson Education
  • 45. Quality Goals – ISO 9000 certification (cont’d) – The ISO 9000 standards have become the internationally recognized standard for evaluating and comparing companies in the global marketplace. – This type of certification can be a prerequisite for doing business globally. 18-45 Copyright © 2011 Pearson Education
  • 46. Quality Goals – Six Sigma – Six Sigma is a quality standard that establishes a goal of no more than 3.4 defects per million units or procedures. – Sigma is a Greek letter used in statistics. The higher the sigma, the fewer the deviations from the norm—that is, the fewer the defects. – At Six Sigma, you are about as close to defect free as you can get. It is an ambitious quality goal! – Many quality-driven businesses are using it and benefiting from it including many in the Arab region. 18-46 Copyright © 2011 Pearson Education
  • 47. Mass Customization – Is a design-to-order concept that provides consumers with a product when, where, and how they want it. – Makes heavy use of technology (flexible manufacturing techniques) and engages in a continual dialogue with customers. 18-47 Copyright © 2011 Pearson Education
  • 48. Benefits of Mass Customization – Creates an important relationship between the firm and the customer in providing loyalty-building value to the customer and in garnering valuable market information for the firm. 18-48 Copyright © 2011 Pearson Education
  • 49. Terms to Know operations management intellectual property manufacturing organizations quality service organizations ISO 9000 productivity Six Sigma value mass customization value chain Cellular manufacturing value chain management organizational processes RFID 18-49 Copyright © 2011 Pearson Education
  • 50. 18-50 Copyright © 2011 Pearson Education