1. Introduction to
Source: Dr. Felton Lean
Retrieve from: http://www.authorstream.com/Presentation/aSGuest59553-464254introduction-tp-operations-management/
ปรับปรุ งโดย ดร.กฤษดา เชียรวัฒนสุ ข

4. Feedback
Inputs
Processes
Outputs
Workers
Goods
Managers
Services
Equipment
Feedback
Facility
Materials
Land
Operations and Processes
Energy
Information
Lead time: The time between ordering a good or service and receiving it.

5. The management of systems or processes that
create goods and/or provide services.
 Planning
 Coordinating
 Executing

6. OVERVIEW OF
OPERATIONS MANAGEMENT MODEL
Input
resources
raw materials
machines
personnel
capital
land/buildings
utilities
information
etc.
Transformation
Process
Control
Output
Goods or Services

8. The difference between the cost of inputs and the value or price of outputs
.
Value added
Inputs
Material
Labor
Land
Capital
Transformation/
Conversion
process
Outputs
Goods
Services

9. Feedback and Control
Physical Flow
Information Flow
Measurements taken at various points in the
transformation process for control purposes are called
feedback.
The process of comparing outputs to previously
established standards to determine if corrective action
is needed is called controlling

10. 
Operations management considers how the
input are transformed into goods or
services.

Control is when something is learned about
the goods or services that is used to more
effectively transform future goods or
services.

11. 








13. Inputs
Processing
Outputs
Improvement of patients health condition

14. Inputs
Processing
Outputs
Knowledge
Lecturing
Future
• Text Book
Tutoring
Operations
• Lecture Notes
Assignment
Managers
• Handouts
Exam
• Course CD
• ……
Teaching Evaluation

16. 



17. Production of goods
“
Delivery of services

18. Standardized
Customized
high degree of uniformity
Radio
Canned food
Mobile Phone
Television
Car
Eyeglasses
Tailoring
A la Carte

20. Characteristic
Manufacturing
Tangible
High
High
Low
Easy
Low
High
Easy
Usually
Service

23.  Forecasting
 Capacity planning
 Scheduling
 Managing inventories
 Assuring quality
 Motivating employees
 Deciding where to locate facilities
 And more . . .

24. 
Forecasting: Weather, landing conditions, seat demands
for flights.

Capacity Planning: How many number of planes in each
route?

Scheduling: Scheduling of planes for flights and for routine
maintenance, scheduling of pilots and flights attendants.

Quality: Quality of the services, Safety.

25. 
Forecasting: Demands for cars.

Capacity Planning : Number of shifts, level of workforce.

Inventory: Various component, parts.

Scheduling: Scheduling of various types of cars, Scheduling of
workforce.

Quality: Quality of products, services.

26. Responsibilities of Operations Manager
Planning
– Capacity
– Location
– Products & services
– Make or buy
– Layout
– Projects
– Scheduling
Controlling / Improving
– Inventory
– Quality
– Costs
– Productivity
Organizing
– Degree of centralization
– Process selection
Staffing
– Hiring/laying off
– Use of Overtime
Directing
– Incentive plans
– Issuance of work orders
– Job assignments

27. Why is Operations Management
Important?

28. Capital Markets, Stockholders
Marketing
Customers
Workers
Operations
Personnel
Purchasing
Suppliers
Finance

31. The Overlapping of Three Major Functions
• Competitor
• Customer preference
• Trend of technology

32. Operational based competitive advantage can be achieved
by:
*Doing things right the first time - Quality advantage;
*Doing things cost effectively - Cost advantage;
*Do things fast: Speed advantage;

33. *Change things quickly: Adaptability-advantage;
(ability to change from making Tea, Coffee, etc)
- Change operations to meet customer demand for variety.
- SME Furniture manufacturer (beds, chairs, tables, sofa).
*Do things right every time: Reliability-advantage;
- Offer error-free products or services to customers every time.
*Do things better: Service-advantage and continuous improvement;
(e.g., TQM – all aspects of business important in delivering
quality service to customer).

34. Forecasting
Capacity
Planning
Product and
Service Design
Technological
Change
Facilities and
Equipment
Layout
Process
Selection
Work
Design

35. 
Variety
 How much

Flexibility
Batch
 What degree

Volume
 Expected output
Repetitive
Job Shop
Continuous

36. 
Job shop/
Unit Production

Batch/
Process Departments

Assembly Line/
Product Departments

Continuous Flow/ Process Industries

37. 
Job shop
 Small scale

Batch
 Moderate volume

Repetitive/assembly line
 High volumes of standardized goods or services

Continuous
 Very high volumes of non-discrete goods

38. Process Type
Amount
∞
0
Job Shop
Appliance repair
Not feasible
Emergency room
Commercial
bakery
Batch
Classroom
Lecture
Automotive
assembly
Repetitive
Automatic
carwash
Continuous
(flow)
Not feasible
Oil refinery
Water purification

39. Dimension
Job variety
Very High
Moderate
Low
Very low
Process
flexibility
Very High
Moderate
Low
Very low
Unit cost
Very High
Moderate
Low
Very low
Volume of
output
Very Low
Low
High
Very High

40. PROCESS FLOW
 UNIT/JOB SHOP
One of a Kind, Custom Tools, Buildings, Software, Research Projects,
Exclusive Restaurants
 BATCH
Furniture, Clothes, Most Plastic Parts, Many Photo Shops
 MASS
Autos, BIC pens, Consumer Electronics, One-Hour Photos, Fast Food
Restaurants
 CONTINUOUS PROCESS
Chemicals, Primary Materials, Petroleum, Lumber

41. 
UNIT
BATCH

MASS ASSEMBLY LINE
CONTINUOUS
PROCESS

42. Low
Volume
One of a
Kind
I.
Job
Shop
II.
Batch
III.
Assembly
Line
IV.
Continuous
Flow
Multiple
Products,
Low
Volume
Few
Major
Products,
Higher
Volume
High
Volume,
High
Standardization
Flexibility (High)
Unit Cost (High)
Commercial Printer
French Restaurant
Heavy Equipment
Coffee Shop
Automobile Assembly
Burger King
Sugar
Refinery Flexibility (Low)
Unit Cost (Low)
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York:
John Wiley & Sons, 1984). p. 209.

43.  Flexibility/Variety is Higher
 Costs are Higher
 OK with low volume markets
 OK when high customization is necessary
Threats:
 A competitor can undercut you
 Risky when high volume can be stimulated through
price competition

44.  Costs are lower
 Automation is higher
 Greater investment
Threats:
 Greater market risk – what do you do with an
automated highly specialized plant when demand
decreases?
 Competition may match costs with greater product
variety.

45. Types of Service Operations
Service
Labor Intensive
Capital Intensive
Automatic
Monitored by
Unskilled
Operators
Operated
by Skilled
Operators
Vending
machines,
automated
car washes
Movie
theaters,
taxis, dry
cleaners
Airlines,
medical
testing,
excavating
Unskilled
Labor
Skilled
Labor
Professionals
Lawn care,
janitorial,
guards
Appliance
repair,
banks,
catering
Doctors,
lawyers,
consultants

46. 
Defining Services - Types of Processes
Type
Mfg. Example
Project
Construction,
Consulting,
Shipbuilding
Software Development
Sign-making
Auto Repair
Tailoring
Restaurant
Automobiles
Fast Food Restaurant
Appliance Shop
Car Wash
Job Shop
Flow Shop
Continuous Process Oil Refinery
Cereal Plant
Service Example
ATMs
Police / Fire Service

47. 
Service
System
Primary
Input
Conversion
Process
Desired
Output
University
.
Students
Knowledge
Transmission
Educated
People
Hospital
.
Patient
Health Care
Healthy
People
Restaurant
.
Customers
Food
Preparation
Satisfied
Customers
Video Store
.
Customers
Fill Requests
Satisfied
Customers

48. Consumer
Need
Market
Research
Consumer
Acceptance
Demand
Analysis
Product
Design
Production
Design
Approved
Proposal to
Management
Approval
Sales
Cash
Sale &
Promotion
Planning
Credit
Revenue
Reports
Not
Approved
Execute
Production Plan and
Quality Control
Production
Planning
Approved
Purchase
of Material
Wage
& Salary
Profits &
Reserve

49. Idea generation
Feasibility study/
Advanced product
planning
Advanced design
Detailed engineering
design
Production process
design & development
Product evaluation
Product improvement
Product use & support /
After sales services