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Operations, Quality, and Productivity
Learning Outcomes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],After studying this chapter, you should be able to:
Learning Outcomes (cont’d) ,[object Object],[object Object],[object Object],After studying this chapter, you should be able to:
IDEAS ON MANAGEMENT  at Frito Lay ,[object Object],[object Object],[object Object],[object Object],[object Object]
Time-Based Competition and Operations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exhibit 14 – 1   ●  How Operations Systems Are Classified, Designed, and Managed
Classifying Operations Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Classifying Operations Systems (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Operations Flexibility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Operations Flexibility (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object]
 
Resources and Technology Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exhibit 14 –2   ●  Classifying Operating Systems
Designing Operations Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exhibit 14 –3   ●  Throughput Stages
Facility Layout ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exhibit 14 –4   ●  Facility Layout
Exhibit 14 –4   ●  Facility Layout (cont’d)
 
Facility Location ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Join the Discussion Ethics & Social Responsibility   ,[object Object],[object Object],[object Object]
Capacity Planning ,[object Object],[object Object]
Join the Discussion Ethics & Social Responsibility   ,[object Object],[object Object],[object Object]
Managing Operations Systems and the Supply Chain ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Managing Operations Systems and the Supply Chain (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Managing Operations Systems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exhibit 14 –5   ●  Planning Sheet
Exhibit 14 –6   ●  Gantt Chart (Orders by Week) * Indicates today’s date—the first day of the third week of May. Ends of bars indicate scheduled starting and ending dates of project. The shaded part of the bar indicates the part of the project completed to date, while the blank space to the end of the bar indicates work still to be completed. The GE project is done. The IBM project is right on schedule and should be completed this week. The GM project is behind schedule and should be completed during the fourth week in May. The AT&T project is ahead of schedule and should be completed during the first week of June.
Developing a PERT Network 1. List all the activities/events that must be completed to reach the specific objective. 2. Determine the time it will take to complete each activity/event. 3. Arrange the tasks on the diagram in the sequence in which they must be completed. 4. Determine the critical path.
Exhibit 14 –7   ●  PERT Network
 
Exhibit 14 –8   ●  Inventory Control within the Systems Process Just-in-Time Inventory: An inventory method in which necessary parts and raw materials are delivered shortly before they are needed.
Materials Requirements Planning ,[object Object],[object Object],[object Object],[object Object]
Materials Requirements Planning (cont’d) ,[object Object],[object Object],[object Object]
Supply Chain Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Quality Control ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Join the Discussion Ethics & Social Responsibility   ,[object Object],[object Object],[object Object],[object Object]
Exhibit 14 –9   ●  Five Rules of Customer Human Relations
Total Quality Management (TQM) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Statistical Quality Control ,[object Object],[object Object]
Statistical Quality Control Steps 1. Set a range that includes the highest and lowest levels of acceptable quality, with the desired standard in the middle. 2. Determine the sampling technique and the frequency of measuring performance. 3. Measure performance and plot it on an SPC chart. 4. Use the exception principle and do nothing if performance is within range, but take corrective action if it is out of control limits.
Exhibit 14 – 10   ●  Statistical Process Control Chart for 16-Ounce Bags of Lay’s Potato Chips Trend
Contributions by Quality Gurus ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Productivity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Productivity (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Productivity (cont’d) ,[object Object],[object Object],[object Object]
 
Productivity (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exhibit 14 – 11   ●  Functional Area Ratios
Exhibit 14 – 11   ●  Functional Area Ratios (cont’d)
 
Exhibit 14 – 12   ●  The Balanced Scorecard Source: Based on Robert Kaplan and David Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review, January-February 1996, pp. 75–85.
Exhibit 14 – 13   ●  Futura Industries’ Balanced Scorecard
KEY TERMS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Chapter 14 - Operations, Quality, and Productivity

  • 2.
  • 3.
  • 4.
  • 5.
  • 6. Exhibit 14 – 1 ● How Operations Systems Are Classified, Designed, and Managed
  • 7.
  • 8.
  • 9.  
  • 10.
  • 11.
  • 12.  
  • 13.
  • 14. Exhibit 14 –2 ● Classifying Operating Systems
  • 15.
  • 16. Exhibit 14 –3 ● Throughput Stages
  • 17.
  • 18. Exhibit 14 –4 ● Facility Layout
  • 19. Exhibit 14 –4 ● Facility Layout (cont’d)
  • 20.  
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28. Exhibit 14 –5 ● Planning Sheet
  • 29. Exhibit 14 –6 ● Gantt Chart (Orders by Week) * Indicates today’s date—the first day of the third week of May. Ends of bars indicate scheduled starting and ending dates of project. The shaded part of the bar indicates the part of the project completed to date, while the blank space to the end of the bar indicates work still to be completed. The GE project is done. The IBM project is right on schedule and should be completed this week. The GM project is behind schedule and should be completed during the fourth week in May. The AT&T project is ahead of schedule and should be completed during the first week of June.
  • 30. Developing a PERT Network 1. List all the activities/events that must be completed to reach the specific objective. 2. Determine the time it will take to complete each activity/event. 3. Arrange the tasks on the diagram in the sequence in which they must be completed. 4. Determine the critical path.
  • 31. Exhibit 14 –7 ● PERT Network
  • 32.  
  • 33. Exhibit 14 –8 ● Inventory Control within the Systems Process Just-in-Time Inventory: An inventory method in which necessary parts and raw materials are delivered shortly before they are needed.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39. Exhibit 14 –9 ● Five Rules of Customer Human Relations
  • 40.
  • 41.
  • 42. Statistical Quality Control Steps 1. Set a range that includes the highest and lowest levels of acceptable quality, with the desired standard in the middle. 2. Determine the sampling technique and the frequency of measuring performance. 3. Measure performance and plot it on an SPC chart. 4. Use the exception principle and do nothing if performance is within range, but take corrective action if it is out of control limits.
  • 43. Exhibit 14 – 10 ● Statistical Process Control Chart for 16-Ounce Bags of Lay’s Potato Chips Trend
  • 44.
  • 45.
  • 46.
  • 47.
  • 48.  
  • 49.
  • 50. Exhibit 14 – 11 ● Functional Area Ratios
  • 51. Exhibit 14 – 11 ● Functional Area Ratios (cont’d)
  • 52.  
  • 53. Exhibit 14 – 12 ● The Balanced Scorecard Source: Based on Robert Kaplan and David Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review, January-February 1996, pp. 75–85.
  • 54. Exhibit 14 – 13 ● Futura Industries’ Balanced Scorecard
  • 55.