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Lecture Notes Chapters 1 To 5

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26 views4 pages

Lecture Notes Chapters 1 To 5

Uploaded by

Nuray Bashirli
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Lecture Notes: Chapters 1 to 5

Chapter 1: Introduction to Operations Management


Key Concepts:
- Operations Management (OM): The administration of business practices aimed at ensuring
maximum efficiency within a company, which in turn helps to improve profitability.
- Production Systems: The system that produces goods and services by transforming inputs
into outputs.
- Operations Strategy: The plan that specifies the design and management of operations
resources to support the business strategy.
- Role of OM: Involves planning, organizing, and supervising in the contexts of production,
manufacturing, or the provision of services.

Important Elements:
1. Inputs, Processes, Outputs:
- Inputs: Materials, labor, and capital.
- Processes: Conversion of inputs into outputs.
- Outputs: Finished goods and services.
2. Efficiency vs. Effectiveness:
- Efficiency: Performing activities at the lowest possible cost.
- Effectiveness: Performing the right activities to create the most value for the customer.
3. Productivity: Measure of how well resources are used.

Chapter 2: Operations Strategy and Competitiveness


Key Concepts:
- Operations Strategy: Long-term approach that determines the major decisions regarding
production and operations that shape the long-term capabilities of the operations.
- Competitive Dimensions: Cost, quality, time, and flexibility.
- Strategic Fit: Alignment between operational capabilities and business strategy.
- Order Winners and Qualifiers:
- Order Winners: Criteria that differentiate products and services of one firm from
another.
- Order Qualifiers: Basic criteria that allow the firm’s products to be considered for
purchase.

Strategic Decisions:
1. Product and Service Design:
- Decisions about product/service characteristics, and process selection.
2. Process and Technology:
- Decisions about the type of processes and the level of technology.
3. Capacity:
- Decisions about the amount of capacity and timing of capacity changes.
4. Facilities:
- Location and layout decisions.
5. Quality:
- Decisions about quality systems and procedures.
6. Workforce:
- Decisions about workforce skills, policies, and practices.

Chapter 3: Product Design and Process Selection


Key Concepts:
- Product Design: The process of defining the unique characteristics and features of a
company's product.
- Process Selection: Deciding on the way production of goods or services will be organized.
- Product Life Cycle: Introduction, Growth, Maturity, Decline stages.

Types of Production Processes:


1. Job Shop: Customized goods or services.
2. Batch: Moderate volume and variety.
3. Assembly Line: High volume of standardized goods or services.
4. Continuous Flow: Very high volume, highly standardized.

Process Design Tools:


1. Process Mapping: Visual representation of the steps in a process.
2. Flowcharting: Diagramming the process.
3. Process Simulation: Using models to test different process scenarios.

Chapter 4: Business Processes


Key Concepts:
- Business Process: A set of logically related tasks or activities performed to achieve a
defined business outcome.
- Types of Processes:
- Primary Processes: Main value-added activities.
- Support Processes: Necessary activities that do not directly add value.
- Development Processes: Improve the performance of primary and support processes.

Process Mapping:
1. Process Map: Identifies the specific activities that make up the informational, physical,
and/or monetary flow of a process.
2. Swimlane Diagram: Diagram that shows who does what in a process, useful for
identifying inefficiencies.
3. Rules for Process Mapping:
- Identify all the activities that serve as focal points.
- Clearly define boundaries and start/end points.
- Keep it simple.

Chapter 5: Quality Management


Key Concepts:
- Quality Management: Activities and functions involved in determination of quality policy
and its implementation through means such as quality planning and quality assurance.
- Quality Dimensions: Performance, features, reliability, conformance, durability,
serviceability, aesthetics, perceived quality.
- Cost of Quality:
- Prevention Costs: Costs associated with preventing defects.
- Appraisal Costs: Costs of activities designed to ensure quality.
- Internal Failure Costs: Costs of defects before they reach the customer.
- External Failure Costs: Costs of defects after they reach the customer.

Quality Improvement Tools:


1. Control Charts: Used to monitor the stability of a process.
2. Cause-and-Effect Diagrams: Identify potential causes of quality problems.
3. Pareto Charts: Identify the most important causes of problems.
4. Flowcharts: Document the steps in a process.
5. Histograms: Display the distribution of data.

Production Line- mass products, each station performs specific tasks, industries-
automobile manufacturing and electronic assembly, the highest volume and standardized.

Product-Based Layout- production of a single product or group of similar products.


Reduce material usage and producing time.

Batch Manufacturing Layout- products are produced in groups or batches, industries are
pharmaceuticals and food processing.

Job Shop Layout- designed for custom or small-scale production, the most flexible, the
most adaptable to changing product specifications.

MTS- MAKE TO STOCK- producing goods based on forecasted demand and storing them in
inventory until they are sold, mass production. Examples: clothing and electronics.

MTO- MAKE TO ORDER- producing goods only after receiving a customer order, minimizes
inventory costs and allows for customization. Example: custom-built machinery or
specialized equipment.
ATO- ASSEMBLE TO ORDER- assemble (qurasdirmaq), assembling final products only
after receiving a customer order, using pre-manufactured components. This strategy
combines the benefits of MTS and MTO. Example: computer manufacturing, where
components are kept in stock and assembled based on specific customer needs.

ETO- ENGNEER TO ORDER- designing and manufacturing a product from zero after
receiving a customer order. Example: custom-built ships, industrial equipment, or large
infrastructure projects.

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