BUAD110 Chapter Notes - Chapter 16: Maintainability, Master Production Schedule, Three Steps
1 Jun 2018
School
Department
Course
Professor
Chapter 16: Managing Business Operations
What is Operations Management?
● Production: the creation of goods or services
● Production system: the system that businesses use to produce products
○ Mostly goods-manufacturing system
○ Mostly services-service system
● A production system can be modeled as a system that takes inputs and creates outputs
via a transformation process
● Suppliers -> inputs -> transformation process -> outputs -> customers
● Operations management: the management of the direct resources that are involved in
the production system of a business organization
Competitiveness
● Businesses compete mostly along three dimensions: price, quality, and time
What Do Operations Managers Do?
● Design decisions: decisions related to creating the products and the production system
itself
○ What products should the company offer?
○ How should products be produced?
● Planning decisions: decisions related to preparing the production system for production
○ How should the production rate be determined?
○ What are appropriate inventory levels?
● Control decisions: decisions made once the production system is producing
○ How should product quality be controlled?
○ What should the production sequence of different work orders at different work
stations?
Design Decisions
● Product
○ Manufacturing
○ Assembly
○ Recycling
○ Robust designs: design that allows products to perform well under a wide variety
of conditions
○ Modular designs
○ Quality function deployment
● Process
○ Project: the product is produced in low volumes with high levels of customization
○ Job: the product is produced in relatively low volumes with relatively high levels
of customization
○ Batch: the product is produced at medium volumes and customization levels
Document Summary
Production: the creation of goods or services. Production system: the system that businesses use to produce products. A production system can be modeled as a system that takes inputs and creates outputs via a transformation process. Suppliers -> inputs -> transformation process -> outputs -> customers. Operations management: the management of the direct resources that are involved in the production system of a business organization. Businesses compete mostly along three dimensions: price, quality, and time. Design decisions: decisions related to creating the products and the production system itself. Planning decisions: decisions related to preparing the production system for production. Control decisions: decisions made once the production system is producing. Robust designs: design that allows products to perform well under a wide variety of conditions. Project: the product is produced in low volumes with high levels of customization. Job: the product is produced in relatively low volumes with relatively high levels of customization.
