Operations Management in TQM

uniformity of input

*) Service operations are often subject to a higher degree of variability of inputs. *) Each client, patient, customer, repair job, and so on presents a somewhat unique situation that requires assessment and flexibility. *) Conversely, manufacturing operations often have a greater ability to control the variability of inputs, which leads to more-uniform job requirements.

organizing

Decree of centralization, subcontracting

controlling

Inventory control, quality control

labor content of jobs

Services often have a higher degree of labor content than manufacturing jobs do, although automated services are an exception.

system

a set of interrelated parts that must work together

inventory models

also popular after some early work, went through a long period of low interest but are now widely used to control inventories

linear programming

and related mathematical techniques are widely used for optimum allocation of scarce resources.

schematic model

are more abstract than their physical counterparts; that is, they have less resemblance to the physical reality.

mathematical models

are the most abstract: they do not look at all like their real-life counterparts. Examples include numbers, formulas, and symbols.

Project models

are useful for planning, coordinating, and controlling large-scale projects. (PERT and CPM)

Operations Management

at the core of all business organizations

community

being a good neighbor

planning

capacity, location, products and services, make or buy, layout, projects, scheduling

finance

comprises of activities related to securing resources at favorable prices and allocating those resources throughout the organization

management information system (MIS)

concerned with providing the management the information it needs to effectively manage; helps firm to realize maximum benefit from investment

Operations

consists all of activities directly related to producing goods or providing services

operations

core of most business organization; responsible for creation of good or services

statistical models

currently used in many areas of decision making.

hiring and firing workers

don't hire under false pretenses (e.g., promising a long-term job when that is not what is intended)

economic analysis of investment proposals

evaluation of alternative investments in plant and equipment requires input from both operations and finance people

service oriented

exists in areas such as healthcare, transportation, food handling, etc.

goods-oriented

exists in both manufacturing and assembly operatioons

Marketing

focus on selling and/or promoting the goods or services of an organization

maintenance

general upkeep or repair of equipment

lead time

gives customers realistic estimates of how long it will take to fill their order; time between ordering a good or service and receiving it

standardized output

high degree of uniformity in goods or service

staffing

hiring/laying off, use of overtime

quality

honoring warranties, avoiding hidden defects; :

service operation

implies on act

quality assurance

in many instances, customers receive the services as it is performed

directing

incentive plans, issuance of work orders, job assignments.

system operation

involves management of personnel, inventory planning and control, scheduling, project management, and quality assurance

service

is act oriented

system approach

is almost always beneficial in decision making; essential whenever something is being designed, redesigned, implemented, improved, or otherwise changed.

model

is an abstraction of reality, a simplified version of something.

manifacturing

is good oriented

budgeting

it must be periodically to plan financial requirements; must sometimes be adjusted, and performance related to budget must be evaluated

design people

long term (in marketing)

physical models

look like their real-life counterparts.

uniformity of output

manufacturing tends to be smooth and efficient because of high mechanization generates product with low variability; services appear to be slow and awkward

quantitative approach

may be emphasized at the expense of qualitative information. Models may be incorrectly applied and the results misinterpreted.

measurement of productivity

more straightforward in manufacturing due to high degree of uniformity of most manufactured items; in service, it is more difficult

provision of funds

necessary funding of operations and the amount and timing of funding can be important and even ctricial when funds are tight

environment

not doing things that will harm the environment

Management Information System (MIS)

occurs mainly through designing systems to capture relevant information & designing reports

industrial engineering

often concerned with scheduling, performance standards, work methods, quality control, and material handling

worker safety

providing adequate training, maintaining equipment in good working condition, maintaining a safe working environment

product safety

providing products that minimize the risk of injury to users or damage to property or the environment

personnel or human resources

recruitment or training of personnel

system design

relate to system capacity, the geographic location of facilities, arrangement of departments and placement of equipment within physical structures, product planning, and acquisition of equipment

purchasing

responsibility for procurement of materials, supplies, and equipment

production of goods

results in a tangible output

customer contact

service involves much higher degree of customer contact than manufacturing

Distribution

shipping of goods to warehouses, retail outlets, or final customers

operations people

short term (in marketing)

trade-off

situational decision that involves diminishing or losing one quality, quantity, or property of a set or design in return for gains in other aspects.

accounting

supplies information to management on costs of labor, materials and overhead and may provide reports on items such as scrap, downtime, and inventories

closing facilities

taking into account the impact on a community, and honoring commitments that have been made;

value added

term used to describe the difference between the cost of inputs and the value or price of outputs

operations manager

the key figure in the system: he or she has the ultimate responsibility for the creation of goods or provision of services.

Operations Management

the management system or process that creates goods and/or provides services

Degree of Standardization

the output of production systems can range from highly standardized to highly customized

customized outputs

the product or service is designed for a specific case or individual

for-profit organization

the value of output is measured by the prices that customers are willing to pay for the goods or services

operations manager

they must coordinate the use of resources through the management of planning, organizing, staffing, directing, and controlling

nonprofit organization

value of outputs is their value to the society

Pareto phenomenon

which means that all things are not equal; some things (a few) will be very important for achieving an objective or solving a problem, and other things (many) will not. The implication is that a manager should examine each situation, searching for the few factors that will have the greatest impact, and give them the highest priority.

queuing techniques

which originated around 1920 in the telephone industry but remained dormant until the 1950s and 1960s, are useful for analyzing situations in which waiting lines form.

forecasting techniques

widely used in planning and scheduling

workers' rights

· respecting workers' rights, dealing with worker problems quickly and fairly