MGMT 309 Chapter 20 - Managing Operations, Quality, and Productivity

(TQM ->Statistical Quality Controls (SQC)) -> In-process sampling

-checking it along the way with the purpose of correcting it -Ex: mixing paint, Jack Daniels

Operations Management as Control

-coordinating operations management with other functions helps ensure the system focuses on critical elements crucial to goal attainment

Fixed position layout (Designing Operation Systems, Facilities Decisions)

-facilities arranged around a single work area, used for manufacturing of large and complex products -Ex: Kyle field, people move around it

Just-in-time (JIT) method (Inventory MGMT)

-getting it just in time to use it so you don't have to pay to store it -has necessary materials arriving as soon as they are needed so that the production process is not interrupted ex: campbell soup having a caning company at their own disposal

Why is excellence in Operations important?

-necessary for competitiveness and overall organization performance -creates value and utility through the production of good and services

8 dimensions of quality

-performance (does it drive?) -features (power windows) -reliability (does it work all the time?) -conformance (is it meeting the standards?) -durability (is it going to last?) -serviceability (how easy is it going to get fixed? Ex: year - parts still current) -aesthetics (senses - does it feel good/taste good/smell good/look good?) -perceived quality (as seen by customer)

Aggregate productivity

-productivity in big picture -the total level of productivity for a country

- Product layout - process - fixed position - cellular

(facilities decisions) types of layouts (4)

Service Technology

- __________ are rapidly moving toward automated systems and procedures -increase in effectiveness because customer fixed/ordered what they wanted -Ex: automated teller machines and room reservations, chilis order things at table, online ordering

Determining Product-Service Mix

- designing operation systems -involves deciding how many and what kinds of products to offer in the marketplace -Ex: soda

Facilities Decisions

- designing operation systems -the physical locations where products or services are created, stored, and distributed -location and layout are part of strategy

Capacity Decisions

- designing operation systems -involve choosing the amount of services, products, or both that can be produced -how much? -can be high-risk decisions due to uncertainty about future product demand and incurred costs of additional, possibly excess -can be structured but manipulated if need be -Ex: Cstat in the summer - lower demands

TQM (Total Quality Management) Tools and Techniques

-Benchmarking -Outsourcing -Reducing cycle time -Statistical quality control (SQC)

Inventory Management

-Inventory control (materials control) -Just-in-time (JIT) method

Cellular layout

-a configuration of facilities used when families of products can follow similar paths -Ex: zipper or pocket, on different shirts but same process to make the pocket -golf club = all the same but different

Statistical Quality Control (SQC)

-acceptance sampling -in-process sampling -checking quality at different points

Robot

-an artificial device that can perform functions ordinarily thought to be appropriate for human beings -Ex: welding

Productivity

-can be measured in different ways -an economic measure of efficiency that summarizes the value of outputs relative to the value of resources used to produce them

(TQM-> SQC->) Acceptance sampling

-checking at end -basically destroy product -Ex: light bulb

Product layout

-facilities arranged around the product, used when large quantities of a single product are needed -assembly line

Quality and productivity

-increased employee participation can improve both _________ and _________

Increasing Employee Involvement (Improving Productivity)

-increased employee participation can improve both quality and productivity -tie employees into it - value/buy-in -cross-training of employees allows firms to function with fewer workers -rewards are essential to success in improving productivity

Reducing cycle time (TQM tool)

-start from scratch -minimize the # of approvals needed to do something -use work teams as basis for organization -develop & adhere to a schedule -do not ignore distribution -integrate speed into organization's culture

Automation

-the process of designing work so that it can be completely or almost completely performed by machines -things done remotely of by computer -Ex: thermostat through phone

Benchmarking (TQM tools and techniques)

-the process of learning how and what other firms do in an exceptionally high-quality manner -opening restaurant - compare against competitors -Ex: Torchy's Tacos

Supply Chain Management

-the process of managing operations control, resource and inventory acquisition and purchasing, and thus improving overall efficiency and effectiveness -managing supply process all along the way

Operations Management

-the set of managerial activities used by an organization to transform resource inputs into products, services, or both -process of inputs to outputs -quantitative

Technology

-the set of processes and systems used to organizations to convert resources into products or services -made things more efficient

Industry productivity

-the total productivity of all firms in an industry -energy vs. chemical

-manufacturing -service

2 types of organizational technologies

-Improving Operations -Increasing Employee Involvement

2 ways to improve productivity?

- technology -automation - robot - robotics

4 types of manufacturing technology:

reciprocal

Operations management and organizational strategy have __________ effects on each other.

relative; absolute -sometimes perception, sometimes actual

Quality is both a ________ and ________ concept.

products; services

Quality is relevant to both ________ and ________.

Levels of Productivity

The unit of analysis used to calculate or define productivity -Aggregate productivity -Industry productivity -Company productivity -Unit productivity -Individual productivity

outputs; inputs

To have quality _______ you have to have quality ______

Strategic goals

________ _____ cannot be met if there are deficiencies or insufficiencies in operations resources.

Operations management -Ex: changing hours, quality, cost, etc. changes strategy, which changes productivity, effectiveness, etc.

__________ __________ has a direct impact on competitiveness, quality, productivity, and effectiveness.

TQM

all aspects touching organization from quality perspective

Malcolm Baldrige Award

given to firms who achieve major quality improvements

Costs

improved quality reduces (blank) from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers

Inventory control (materials control)

managing the organization's raw materials, work-in-process, finished goods, and products in-transit

facilities

physical locations where products or services are created, stored, and distributed.

Individual/ personal productivity

productivity attained by a single person measure by performance evaluation

Outsourcing (TQM)

subcontracting operations/services to those who can do them cheaper and/or better ex: A&M hiring cleaning services

Company productivity

the level of productivity for a single company (profit share)

Layout

the physical configuration of facilities, the arrangement of equipment within facilities, or both

Location

the physical positioning or geographic site of facilities

Unit productivity

the productivity level of a department (Gain Sharing measure by ______)

Quality

the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs -differentiation strategy

- In transit (pipeline) (Transportation and distribution control system)

type of Inventory control that distributes products to customers (and source of control)

-Work in process ( Shop-floor control systems)

type of Inventory control that enables overall production to be divided into stages of manageable size (and source of control)

- finished goods ( High-level production scheduling systems in conjunction with marketing

type of Inventory control that provides ready supply of products on customer demand and enables long, efficient production runs. ( and source of control)

- Raw Materials (purchasing models and systems)

type of Inventory control that provides the materials needed to make the product (and source of control)

-manufacturing org - service org

types of operations

Process layout

-facilities arranged around the process; used in facilities that create or process a variety of products -Ex: Broken leg, appendix = different doctors and parts of the hospital

Manufacturing organization

-form of business that combines/transforms resource inputs into tangible outcomes that are then sold to others -produces an item -Ex: water bottles

Purchasing Management (Procurement)

-inventory -controlling and buying of the materials and resources is at the heart of effective supply chain management

Service organization

-organization that transforms resources into an intangible output and creates time and place utility for its customers -creates an experience -Ex: haircut

Manufacturing Technology

-organizational technology -Technology -Automation -Robot

Productivity (the importance of quality)

-quality enhancement programs decrease defects, reduce rework, and eliminate the need for inspectors as employees assume responsibility for quality -inc. quality = inc. cost, dec. defects and returns

Competition

-quality has become one of the most important (blank) points in business today -can allow you to charge more ex: differentiation strategy

productivity

-reworking transformation processes and facilities can boost ____________.

-research and development -products, uses - methods, making products

-spending more resources on ____________ and ___________ helps identify new __________, new _______ for existing products, and new ___________ for ____________ ______________.

Improving Operations (ways of improving productivity)

-spending more resources on research and development helps identify new products, new uses for existing products, and new methods for making products -reworking transformation processes and facilities can boost productivity