Chapter 7 Production and Operation Management

1、Production and Operation ManagementCheng GuopingChapter 1 Introduction1. Production System2. Production and operations in the organization3. Function and jobs of POM4. Decision Making in POM5. The emergence of production and operation management1. Production SystemProduction and operation management

2、 (POM) is the management of an organization's production system, which converts input into the organization 's products and services.1.1 Production system modelInputs conversions subsystem outputExternalLegal/politicalSocialEconomicTechnological Direct OutputsProductsServices MarketCompetiti

3、onProduct InformationCustomer Desires ConversionSubsystemIndirect OutputsTaxesWages and salariesTechnological DevelopmentEmployee ImpactEnvironment ImpactsSocial ImpactResourcesPeople MaterialsEnergyCapital EquipmentFacilitiesTechnology Control Subsystem Feedback Feedback Figure 1 A production Syste

4、m Model1.2 Common ground and differences between manufacturing and services1.2.1 Common Ground:l Entail customer satisfaction as a key measure of effectivenessl Require demand forecastingl Require design of both the product and the processl Involve purchase of materials, supplies, and servicesl Requ

5、ire equipment, tools, buildings, and skills, etc. 1.2.2 Differences:l Customer contactService involves a much higher degree of customer contact than manufacturing does.The performance of a service typically occurs at the point of consumption.Manufacturing allows a separation between production and c

6、onsumption.l Uniformity of inputService operations are subject to more variability of inputs than manufacturing operations are. Each patient, each lawn, each TV presents a specific problem.l Labor content of jobsManufacturing -capital -intensiveService -a higher labor content.l Uniformity of outputP

7、roducts-standardization, low variability, smooth, efficientService-customization, variable, slow.l StoreGoods may be storedServices are consumed during delivery, cannot be stored. l Measurement of productivityIn manufacturing, measurement is more straightforward In service operation, measurement is

8、more difficult due to variations in demand intensity.Table 1. Difference between manufacturing and serviceCharacteristicManufacturingServiceOutputTangibleIntangibleCustomer ContactLowHighUniformityhighlowLabor contentLowHighUniformity of outputHighLowStore of outputEasyDifficultMeasurement of produc

9、tionEasyDifficult2. Production and operations in the organizationFinanceProductionMarketingFigure 2 Basic management responsibilities3. Function and jobs of POM3.1 Functionsl Manufacturing-cutting, drilling, milling, etc. Or Teaching, farming, packing, consulting, mixing, etc.l Transportingl Storing

10、l Plant maintenance and managementl Material managementl Quality control, etc.Table 2 functions of POMPlaningCapacityLocation Layout ProjectsProducts and servicesMake or buySchedulingOrganizingDegree of centralizationSubcontractingStaffingHiring/laying offUse of overtimeDirectingIncentive plansIssua

11、nce of work ordersJob assignmentsControllingInventory controlQuality controlWork-in process controlProcess controlPublic relationsIndustrial engineering POMPurchasingPersonnelMaintenanceAccountingFigure 3 POM interfaces with a number of supporting functions3.2 JobsTable 3 Jobs of POMTypes of firms S

12、ome Line JobsSome Staff JobsManufacturingV.P. manufacturingPlant managerProduction managerSuperintendentForemanTeam leaderCrew chiefManufacturing engineerIndustrial engineerQuality control managerQuality control engineerMaterial managerInventory analystProduction schedulerRetailingV.P. operationsSto

13、re managersOperation managerDepartment supervisorSales clerkCustomer service managerSecurity managerMaintenance managerSupplies specialistWarehouse manager4. Decision Making in POM4.1 Strategic Decision -Being of strategic importance, having long-term significancel Deciding whether to launch a new-p

14、roduct development projectl Deciding on the design for a production process for a new productl Deciding what new factories are needed and where to locate theml How to allocate scarce raw materials, utilities, capacity, personal among new and existing business opportunities4.2 Operation decision - Pl

15、anning production to meet demandl Deciding how much finished-goods inventory to carry for each productl Deciding what products and how much of each to include in next month's production schedulel Deciding whether to increase production capacity next month by overtime or subcontract l Deciding th

16、e details of a plan for purchasing raw materials 4.3 Control decision -Planning and scheduling operations l Deciding quality control criterial Deciding time arrangementl Day-to-day decision about workers, product quality, machinery5. The emergence of production and operation managementTable 4 the de

17、velopment of POMDateContribution/concept and ToolsOriginator1776 Division of labor Adam Smith1790Interchangeable partsEli Whitney1910sScientific management principlesStandard ,Time study, methods analysisPlanningFrederick W. TaylorMotion studies, method, TherbligsConstruction contractingFrank B. Gil

18、brethFatigue studyHuman factor in workEmployee selection and trainingLillian M. GilbrethGantt chartsIncentive pay systemsHenry L. GanttMoving assemble lineHenry FordEOQ mathematical modelF. W. Harris 1930Hawthorne studiesElton Mayo1935 Statistical procedures for sampling and quality controlDodge, Romig,Shewha