Chapter 1

INTRODUCTION TO OPERATIONS
MANAGEMENT

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Operations Management = OM
Management of ANY activities/process that create goods and
provide services
» Exemplary Activities: Forecasting, Scheduling, Quality management
Why to study OM
» At a typical manufacturing company
Profit 5%
OM Cost 21%

Marketing
Cost 26%

Manufacturing
Cost 48%
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 Manajemen aktivitas/proses APAPUN yang
menghasilkan barang dan menyediakan layanan
» Kegiatan Teladan: Peramalan, Penjadwalan,
Manajemen Mutu
Mengapa belajar OM
» Di perusahaan manufaktur biasa
Keuntungan 5%
Biaya OM 21%
Biaya Pemasaran 26%
Biaya Manufaktur 48%
Operations Management = OM
The management of systems or processes that create goods and/or
provide services

Organizatio
n

Finance Operations Marketing

The distinct –active- role of operations:

Inputs become Outputs after some
Transformation 3
Pengelolaan sistem atau proses yang menciptakan
barang dan/atau menyediakan jasa

Perbedaan –aktif- peran operasi: Input menjadi

Output setelah beberapa Transformasi
 Operations example in Manufacturing:
Food Processing
INPUTS PROCESS OUTPUTS

Raw vegetables Cleaning Clean vegetables

Metal sheets Cutting/Rolling/Welding Cans

Energy, Vegetables Cutting Cut vegetables

Energy, Water, Cooking Boiled

Vegetables vegetables
Energy, Cans, Boiled Placing Can food
vegetables
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 Operations example in service:
Health care
Inputs Processing Outputs

Doctors, nurses Examination Healthy

Hospital Surgery patients
Medical Supplies Monitoring
Equipment Medication
Laboratories Therapy

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Types of Operations

Operation Examples

Goods producing Farming, mining, construction

Storage/transportation Warehousing, trucking, mail, taxis,

buses, hotels, location
Exchange Trade, retailing, wholesaling, renting,
leasing, loans
Entertainment Radio, movies, TV, concerts, recording

Communication Newspapers, journals, magazines, radio,

TV, telephones, satellite

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Why OM?
Core of all business organizations
Many areas interrelated with OM activities
Management of operations is critical to create and
maintain competitive advantages

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 organisasi bisnis coreofall
Banyak bidang yang saling terkait dengan kegiatan
OM
Manajemen operasi sangat penting untuk
menciptakan dan mempertahankan keunggulan
kompetitif
Organization of Businesses
Three basic functions
– Operations/Production
» Goods oriented (manufacturing and assembly)
» Service oriented (health care, transportation and retailing)
» Value-added (the essence of the operations functions)
– Finance-Accounting
» Budgets (plan financial requirements)
» Economic analysis of investment proposals
» Provision of funds (the necessary funding of the operations)

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 Tiga fungsi dasar – Operasi/Produksi
» Berorientasi barang (manufaktur dan perakitan)
» Berorientasi layanan (perawatan kesehatan,
transportasi dan ritel) » Nilai tambah (inti dari fungsi
operasi)
– Keuangan-Akuntansi
» Anggaran (rencana kebutuhan keuangan)
» Analisis ekonomi proposal investasi
» Penyediaan dana (pendanaan yang diperlukan
untuk operasi)
Organization of Businesses (Cont.)
– Marketing
» Selling
» Promoting
» Assessing customer wants and needs
» Communicating those needs to operations
The need for working closely
Operations

Marketing Finance

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Operations Interfaces

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Systems (Holistic) Approach
Emphasizes interrelations among subsystems.
A systems approach is essential whenever something is being
designed, redesigned, implemented, or improved. It is
important to take into account the impact on all parts of the
system.

Example: A new feature is added to a product.

Designer must take into account how customers will view the
change, instruction for using new feature, the cost, training of
workers, production schedule, quality standard, advertising
must be informed about the new feature.

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 Menekankan keterkaitan antar subsistem.
Pendekatan sistem sangat penting setiap kali
sesuatu sedang dirancang, didesain ulang,
diimplementasikan, atau ditingkatkan. Penting untuk
memperhitungkan dampaknya pada semua bagian
sistem.
Contoh: Fitur baru ditambahkan ke produk.
Perancang harus mempertimbangkan bagaimana
pelanggan akan melihat perubahan, instruksi untuk
menggunakan fitur baru, biaya, pelatihan pekerja,
jadwal produksi, standar kualitas, iklan harus
diinformasikan tentang fitur baru.
 Systems Approach
“The whole is greater than
the sum of the parts.”

Suboptimization

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Value Added
Value added: The difference between cost of inputs and
price (??) of outputs.

Is this definition right? Should value added include profit?

Value added: The difference between the cost of inputs

and the (market or fair) value or price of outputs.

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 Nilai tambah: Selisih antara biaya input dan harga
(??) output.
Apakah definisi ini benar? Haruskah nilai tambah
termasuk keuntungan? Nilai tambah: Selisih antara
biaya input
dan nilai (pasar atau wajar) atau harga output.
 Value-Added

Value added
Inputs
Transformation/ Outputs
Land
Conversion Goods
Labor
process Services
Capital
Feedback

Control
Feedback Feedback

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Degree of Standardization !
Standardized output
– Take advantage of standardized methods, less skilled
workers, materials…
» Example: Iron, Wheat, most of commodities

Customized output
– Each job is different
– Workers must be skilled
» Example: Hair cut

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 Gelar Standardisasi!
Keluaran standar
– Memanfaatkan metode yang kurang terampil dan terstandar
pekerja, bahan...
» Contoh: Besi, Gandum, sebagian besar komoditas
Keluaran yang disesuaikan
- Setiap pekerjaan berbeda
– Pekerja harus terampil » Contoh: Potong Rambut
Manufacturing (=Goods) vs. Service operations
Production of goods (goods oriented)
– Tangible products
» Automobile
» Refrigerator
Services (TV and auto repair, lawn care)
» Government
» Regulatory bodies, FAA, FDA
» Wholesale/retail
» Financial services
» Education

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Goods vs. Service Operations (Cont)
Differences
1. Customer contact
2. Uniformity of input
3. Labor content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Production and delivery
7. Quality assurance
8. Amount of inventory

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Operasi Barang dan Jasa (Lanjutan)
Perbedaan
1. Komunikasi pelanggan
2. Keseragaman input
3. Konten tenaga kerja dari pekerjaan
4. Keseragaman keluaran
5. Pengukuran efisiensi
6. Produksi dan pengiriman
7. Jaminan kualitas
8. Jumlah persediaan
Manufacturing vs. Service !
Characteristic Manufacturing Service
Output Tangible Intangible
Customer contact Low High
Uniformity of output High Low
Labor content Low High
Uniformity of input High Low
Measurement of Easy Difficult
productivity
Opportunity to correct Easy Difficult
quality problems

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 Goods-service Continuum

Steel production Home remodeling Auto Repair Maid Service Teaching

Automobile fabrication Retail sales Appliance repair Manual car wash Lawn mowing

High percentage goods Low percentage goods

Low percentage service High percentage service

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 Kontinuum Pelayanan Barang
Produksi baja Renovasi rumah
Perbaikan Alat Perbaikan Mobil
Panduan Pengajaran Layanan Pembantu Pencucian mobil
Pemotongan rumput
Barang persentase rendah Layanan persentase tinggi
Fabrikasi mobil
Penjualan eceran
Barang persentase tinggi Layanan persentase rendah
Manufacturing vs. Service Industries in US
Year Mfg. Service U.S. Manufacturing vs. Service Employment
45 79 21
50 72 28 100
55 72 28
60 68 32 80
65 64 36
Percent
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70 64 36
75 58 42 40
80 44 46
85 43 57 20
90 35 65 0
95 32 68
45 50 55 60 65 70 75 80 85 90 95 00
00 30 70
Year

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Responsibilities of Operations Management
Planning
– Capacity, utilization
– Location
– Choosing products or services
– Make or buy
– Layout
– Projects
– Scheduling
– Market share
– Plan for risk reduction, plan B?
– Forecasting
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Operations Managers
Controlling
– Inventory
– Quality
– Costs
Organization
– Degree of standardization
– Subcontracting
– Process selection
Staffing
– Hiring/lay off
– Use of overtime
– Incentive plans
– Job assignments

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 Scope of Operations Management
Operations Management includes:
– Forecasting
– Capacity planning
– Scheduling
– Managing inventories
– Assuring quality
– Motivating employees
– Deciding where to locate facilities
– And more . . .

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Help comes from Models
A structure which has been built purposefully to exhibit
features and characteristics of some other object.

Do not use “thing” or “something” in a definition.

For
– Improved understanding and communication
– Experimentation
– Standardization for analysis
Abstraction vs. computability
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 Bantuan datang dari Model
Sebuah struktur yang telah dibangun dengan sengaja untuk
menunjukkan fitur dan karakteristik dari beberapa objek lain.
Jangan gunakan "sesuatu" atau "sesuatu" dalam definisi.
Untuk
– Peningkatan pemahaman dan komunikasi – Eksperimen
– Standarisasi untuk analisis
Abstraksi vs. komputasi
Modeling !
Use models
– Physical models (prototypes)
– Schematic models (Graphs, charts, pictures)
– Mathematical models,
» Statistical models
» Inventory models
» Linear programming
» Queuing techniques
» Project management models

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 Pemodelan!
Gunakan model
– Model fisik (prototipe)
– Model skema (Grafik, bagan, gambar)
– Model matematika, » Model statistik
» Model inventaris
» Pemrograman linier
» Teknik antrian
» Model manajemen proyek
What type of models
Simulation models : to test a proposed idea
– Monte Carlo Simulation
Optimization models : to create an optimal idea
– Linear programming
Pattern recognition models : to recognize a pattern
– Statistics, Forecasting, data mining

Other classes to learn the rest.

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 model seperti apa
Model simulasi : untuk menguji ide yang diajukan – Simulasi
Monte Carlo
Model optimasi : untuk membuat ide yang optimal –
Pemrograman linier
Model pengenalan pola: untuk mengenali pola – Statistik,
Prediksi, penambangan data
Kelas lain untuk mempelajari sisanya.
Decision Making

Models
Quantitative approaches
Analysis of trade-offs
Systems approach

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 Pengambilan Keputusan
Model
Pendekatan kuantitatif Analisis trade-off
Pendekatan sistem
Models Are Beneficial

Easy to use, less expensive

Require users to organize
– Increase understanding of the problem
– Consistent tool
– Standardized format
– Specific objectives
Systematic approach to problem solving
– Analysis of tradeoffs
– Enable “what if” questions
Power of mathematics
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Mudah digunakan, lebih murah Membutuhkan pengguna untuk
mengatur
– Meningkatkan pemahaman masalah – Alat yang konsisten
– Format standar
- Objek spesifik
Pendekatan sistematis untuk pemecahan masalah – Analisis
pengorbanan
– Aktifkan pertanyaan “bagaimana jika”
Kekuatan matematika
 Pareto Phenomenon
• A few factors account for a high percentage of the
occurrence of some event(s).
• 80/20 Rule - 80% of problems are caused by 20% of
the activities.

How do we identify the vital few?

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 Fenomena Pareto
• Beberapa faktor menjadi penyebab tingginya persentase
terjadinya beberapa peristiwa.
• Aturan 80/20 - 80% masalah disebabkan oleh 20% aktivitas.
Bagaimana kita mengidentifikasi beberapa yang vital?
Historical Evolution of Operations Management

Industrial revolution (1770’s)

Scientific management (1911)
– Mass production
– Interchangeable parts
– Division of labor
Human relations movement (1920-60)
– Unemployment insurance
– Pension plans
Decision models (1915, 1960-70’s)
Influence of Japanese manufacturers (1970-1990)

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 Revolusi industri (1770-an)
Manajemen ilmiah (1911) – Produksi massal
- Bagian yang dapat dipertukarkan
– Pembagian kerja
Gerakan hubungan manusia (1920-60) – Asuransi pengangguran
– Rencana pensiun
Model keputusan (1915, 1960-70-an)
Pengaruh pabrikan Jepang (1970-1990)
Trends in Business
Major trends
– The Internet, e-commerce, e-business
– Management technology
– Globalization
– Management of supply chains
– Agility

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 Tren utama
– Internet, e-niaga, e-bisnis
– Teknologi manajemen
- Globalisasi
– Manajemen rantai pasokan – Kelincahan
Recent Trends !
Worker involvement
Environmental issues, emission reductions are popular after
Central European floods
Service economy in US, foreign production
E-business – information technology
Supply chain management
Total Quality Management
Globalization, emerging markets, NAFTA
Lean Production – see the next page
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 Keterlibatan pekerja
Masalah lingkungan, pengurangan emisi populer setelah
banjir eropa tengah
Ekonomi jasa di AS, produksi asing
E-bisnis – teknologi informasi
Manajemen rantai pasokan
Manajemen Kualitas Total
Globalisasi, pasar negara berkembang, NAFTA
Produksi Lean – lihat halaman berikutnya
Production systems classified
Craft Production : System in which highly skilled workers use
simple, flexible tools to produce small quantities of customized
goods.
– Carpenter
Lean production : System that uses minimal amounts of
resources to produce a high volume of high-quality goods with
some variety.
– Dell
Mass production: System in which lower-skilled workers use
specialized machinery to produce high volumes of standardized
goods.
– Ford

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Produksi Kerajinan : Sistem di mana pekerja yang sangat terampil
menggunakan alat sederhana dan fleksibel untuk menghasilkan
barang yang disesuaikan dalam jumlah kecil.
- Tukang kayu
Produksi ramping: Sistem yang menggunakan sumber daya
dalam jumlah minimal untuk menghasilkan volume tinggi barang
berkualitas tinggi dengan beberapa variasi.
– Dell
Produksi massal: Sistem di mana pekerja berketerampilan
rendah menggunakan mesin khusus untuk memproduksi barang
standar dalam jumlah besar.
– Ford
Production systems classified
Agile=Lean manufacturing
It provides flexibility to switch quickly and economically from
one product design to another with little disruption. This
characteristic, in turn enables faster response to changes in
customer demand.
A sophisticated computerized inventory control system allows
the plant to keep track of large number of parts.
Keys to being an agile manufacturer are :
– Reduction in inventories,
– Reduction in turnaround times,
– Availability of automated flexible machinery,
– Rapid collection and processing of information

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 Ini memberikan fleksibilitas untuk beralih dengan cepat dan
ekonomis dari satu desain produk ke desain lainnya dengan
sedikit gangguan. Karakteristik ini, pada gilirannya,
memungkinkan respons yang lebih cepat terhadap perubahan
permintaan pelanggan.
Sistem kontrol inventaris terkomputerisasi yang canggih
memungkinkan pabrik untuk melacak sejumlah besar suku
cadang.
Kunci untuk menjadi produsen yang gesit adalah:
- Pengurangan persediaan,
- Pengurangan waktu penyelesaian,
– Ketersediaan mesin fleksibel otomatis,
– Pengumpulan dan pemrosesan informasi yang cepat
 Simple Product Supply Chain

Suppliers’ Direct Final

Producer Distributor
Suppliers Suppliers Consumer

Supply Chain: A sequence of activities and

organizations involved in producing and delivering
a good or service

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Rantai Pasokan: Urutan kegiatan dan organisasi yang terlibat
dalam memproduksi dan memberikan barang atau jasa
 A Supply Chain for Bread

Stage of Production Value Added Value of

Product
Farmer produces and harvests wheat $0.15 $0.15

Wheat transported to mill $0.08 $0.23

Mill produces flour $0.15 $0.38

Flour transported to baker $0.08 $0.46

Baker produces bread $0.54 $1.00

Bread transported to grocery store $0.08 $1.08

Grocery store displays and sells bread $0.21 $1.29

Total Value-Added $1.29

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Other Important Trends

Ethical behavior
Operations strategy
Working with fewer resources
Cost control and productivity
Quality and process improvement
Increased regulation and product liability
Lean production

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 Perilaku etis
Strategi operasi
Bekerja dengan lebih sedikit sumber daya
Kontrol biaya dan produktivitas
Peningkatan kualitas dan proses
Peningkatan regulasi dan kewajiban produk Produksi
ramping
Summary
Definition of OM
OM’s relationship with Marketing, Finance and
Accounting
Goods vs. service industries
OM issues, trends and models
Manufacturing systems

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 Definisi OM
Hubungan OM dengan Pemasaran, Keuangan dan
Akuntansi
Barang vs. industri jasa
Masalah, tren, dan model OM
Sistem manufaktur