Operations Management: Production of Goods and Services, Slide di Scienze Sociali

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Operations

Management

Production of Goods

and Services

Learning Objectives

• (^) Explain the importance managing resources effectively

to produce goods and services.

• (^) Explain the difference between production and

productivity.

• (^) Explain the benefits of increasing efficiency and how to

increase it.

What does the operations department do?

• To take the factors of production and change them into outputs. They are responsible for ensuing that value is added to their product or service. Production Processes, Land, Goods, Services, OUTPUTS, Enterpris e, INPUTS, Labour, Capital, Where do these words fit in the production process flow diagram?

The Production Process Flow Diagram

How might the inputs differ industry to industry? Input Land Labou r Capita l Enterpri se Productio n Processe s OUTPUT S Goods Servic es

What are the sub- department s inside the operations department ?

• (^) Factory Manager
• (^) Purchasing

Manager

• (^) Research and

Development

Manager

Responsible for providing the materials, component and equipment required for production. Responsible for the design and testing of new production. Responsible for the quantity and quality of production. Mix n Match In smaller firms, which of these jobs do you think is created last? Why?

How do we calculate productivity?

What is another name for

productivity?

Better processes and layout https://www.youtube.com/watch?v=F-7cjdtrQ9Y McDonalds How do the McDonalds brothers measure their output? What method do they use to increase it?

How can we increase productivity?

1. Improve the layout of a

workplace (like McDonalds did)

2. Improve labour skills by giving

staff more training

3. Introducing

automation/technology

Can you think of any examples

where you have seen this happen?

(aside from McDonalds…)

Staff training Etihad flight training

1. Why do pilots have to spend hundreds of hours in simulators before they practice in real aircraft?
2. How do you think this will benefit the company’s efficiency?

What are the benefits of increased productivity/efficiency?

• (^) Increased output relative to the inputs.
• (^) Lower cost per unit of output.
• (^) Fewer workers may be needed – meaning a saving on salaries.
• (^) More productivity usually results in higher wages – meaning more motivated staff. Can you think of any others?

What’s the problem in this picture? TOO MUCH STOCK!

What are the

problems of

too much

stock?

Examples of Obsolete Products Can you think of any others?

Lean Production Techniques Just in Time

Kaizen

Productio

n