Let’s Watch Ops in Action. Feeding Folks in the Air. Why Study OM?. Every aspect of business affects or is affected by operations Many service jobs are closely related to operations Financial services Marketing services Accounting services Information services
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Craft production - System in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods
Some key elements of the industrial revolution
Began in England in the 1770s
Division of labor - Adam Smith, 1776
Application of the “rotative” steam engine, 1780s
Cotton Gin and Interchangeable parts - Eli Whitney, 1792
Management theory and practice did not advance appreciably during this period
Movement was led by efficiency engineer, Frederick Winslow Taylor -Key aspects: observation, measurement, analysis and improvement of work methods, and economic incentives“Management is responsible for planning, carefully selecting and training workers, finding the best way to perform each job, achieving cooperate between management and workers, and separating management activities from work activities”Emphasis was on maximizing outputMass productionInterchangeable partsDivision of labor
Emphasized the importance of the human element in job design – first contributor was…
(Frank “Motion Studies” Gilbreth’s wife)
The Mother of Modern Management
We find a blend of the scientific/human relations approach.
-Her ideas were not widely adopted during her lifetime, but set direction to future but set direction of future
-She recognized that workers are motivated by indirect incentives (among which she included money) and direct incentives, such as job satisfaction.
-Her work with Frank helped create job standardization, incentive wage-plans, and job simplification.
-Finally, she was among the first to recognize the effects of fatigue and stress on time management.
Refined and developed management practices that increased productivity
Competing in a global economy
Today’s OM still has traces of its past, combined in new ways
Sustainability measures often go beyond traditional environmental and economic measures to include measures that incorporate social criteria in decision making
Hiring and firing workers
Ethical issues arise in many aspects of operations management:
The ability to grasp the many complexelements of Supply Chain Management. Those without an introduction to the specialty would not know where to begin…
Never mind how to address the challenges of operating a goods or service organization from a high level.
How do we identify the vital few, the source of the majority of our “events”?
The operations function includes many interrelated activities, e.g.-
Facilities and layout
Deciding where to locate facilities
And more . . .
The scope of operations management ranges across the organization.
The Operations Function consists of all activities directly related to producing goods or providing services.
A primary function of the operations manager is to guide the system by decision making.
Involves strategic decisions that
The creation of a stable, consistent, quality operation, process, product, service
Variations can be disruptive to operations and supply chain processes. They may result in additional costs, delays and shortages, poor quality, and inefficient work systems.
To design a system, we need to understand what we set out to accomplish as an organization (mission) – e.g., this class started with something like this:
Most operations decisions involve many alternatives that can have quite different impacts on costs or profits. Typical operations decisions include:
Model - an abstraction of reality; a simplification of something.
Common features of models:
Schematic Example – A relatively Simple Sketch of Something Complex
When a mathematically optimal ideal is sought , we rely on qualitative methodologies
Sales & Marketing
Business Operations Overlap