Operations MANAGEMENT and Quality

Operations MANAGEMENT and Quality

Defining Operations

—  Service Operations:

◦       Produce tangible and intangible services.

—  Goods Production:

◦       Produces tangible products.

Products and Services Create Utility To Satisfy Human Wants

—  Form Utility

—  Time Utility

—  Place Utility

—  Operations managers create utility for customers through production, inventory, and quality control.

Resource Transformation Process

Service Operations Differ Markedly From Manufacturing

—  Interacting with customers

—  The intangible and unstorable nature of some services

—  The customer’s presence in the process

—  Service quality considerations

Operations Processes Are Methods Used in Production

—  Goods-Manufacturing:

◦       Analytic processes

◦       Synthetic processes

—  Service Delivery

◦       High contact processes

◦       Low contact processes

Business Strategy as the Driver of Operations

Operations Planning and Control

Operations Planning

·         Lay Out

-custom product

-same step

·         Location

·         Capacity

·         Quality

·         Methods

Layout of a Typical Piccadilly Cafeteria

Operations Scheduling

—  Scheduling Goods Operations

—  Scheduling Service Operations

Gantt Chart

PERT Chart

Operations Control Monitors Results, Which Ensures Performance

—  Materials managers plan, organize, and control the flow of materials from design through distribution.

a.       Supplier Selection

b.      Purchasing

c.       Transportation

d.      Warehousing

e.      Inventory Control

Tools for Operations Process Control

Worker Training

Just-in-time Production Systems (JIT)

Material Requirements Planning

Quality Control

Total Quality Management

—  Always Delivering High Quality

◦       Planning for quality

◦       Organizing for quality

◦       Directing for quality

◦       Controlling for quality

Tools for Total Quality Management

a.       Statistical Process Control

b.      Quality/Cost Studies

c.       ISO 9000

d.      Getting Close to the Customer

e.      Process Reengineering

f.        Outsourcing

Supply Chain for Baked Goods

The Supply Chain Strategy

Supply Chain Management

Working with the supply chain as a whole to improve overall flow.

Supply Chain Reengineering

Improving the process for better results.