Management Chapter 17 Quiz: Operations & Services

PowerPoint Presentation on Management

• The PowerPoint presentation accompanies a management textbook, specifically the Third Canadian Edition
• The authors are John R. Schermerhorn, Jr. and Barry Wright
• The presentation was prepared by Jim LoPresti (University of Colorado, Boulder) and revised by Dr. Shavin Malhotra (Ryerson University, Toronto, Ontario)
• The presentation is published by Wiley

Chapter 17: Operations and Services Management

• This chapter focuses on Operations and Services Management
• The chapter includes study questions

Chapter 17 Study Questions

• 17.1: Identify the essentials of services and operations management
• 17.2: Explain value chain management
• 17.3: Describe how organizations manage customer service and product quality
• 17.4: Explain how work processes can be designed for productivity

Operations Management Essentials

• Operations management involves managing productive systems to transform resources into goods and services for customers
• Key decisions include resource acquisition, inventory management, facility planning, workflow and technology, and product quality

Productivity

• Productivity is a quantitative measure of how efficiently inputs are transformed into outputs
• Productivity = Output / Input

Competitive Advantage

• Competitive advantage is a core competency differentiating an organization from its competitors, providing an advantage in the marketplace

Companies' Competitive Advantage

• Various approaches include product innovations, customer service, speed to market, manufacturing flexibility, and product or service quality

Technology

• Technology combines knowledge, skills, equipment, computers, and methods to transform inputs into organizational outputs
• Includes Manufacturing and Service technologies

Core Manufacturing Technologies

• Small-batch production: Tailoring a variety of custom products
• Mass production: Creating large quantities of uniform products on an assembly line
• Continuous-process production: Continuously feeding raw materials through automated systems with computerized controls

Manufacturing Technology Trends

• Robotics
• Flexible manufacturing systems
• Mass customization
• Cellular layouts
• Computer-integrated manufacturing
• Lean production
• Design for disassembly
• Remanufacturing

Core Service Technologies

• Intensive technology: Specializing in client needs with expertise
• Mediating technology: Linking parties for mutually beneficial exchanges
• Long-linked technology: Passing clients through various service delivery aspects similar to mass production

Value Chain Management

• Value chain: A sequence of step-by-step activities resulting in finished goods or services with customer value

• Supply chain management: Strategic management of all operations relating to an organization's resource suppliers

• Inventory control: Ensuring inventory matches performance needs at the lowest possible cost

• Methods: Economic order quantity (EOQ), Just-in-time scheduling

• Break-even analysis: Determining the sales revenues needed to cover costs

• Break-Even Point = Fixed Costs / (Price - Variable Costs)

• Used in evaluating new products, initiatives

Service and Product Quality

• Customer relationship management (CRM) builds long-term customer relationships and adds value to customers

• External customers: Purchase organization's goods or services

• Internal customers: Depend on other departments' work

• CRM Uses latest technologies for intensive customer communication and data collection. Establishes high standards of customer service

• Total quality management (TQM): Integrates quality principles into organizational objectives, emphasizing continuous improvement, meeting customer needs

• ISO (International Standards Organization) certification: A quality benchmark for countries. Companies undergo audits to meet standards.

Quality, and Continuous Improvement

• W. Edwards Deming emphasized constant innovation, statistical methods, training in quality assurance, continuous improvement, and quality circles

Continuous Improvement

• Constant search for new ways to enhance current performance
• Reducing delivery cycle times between order receipt and delivery

Quality Circle

• Small groups of workers dedicated to improving quality
• Assumes responsibility for quality. Leverages member creativity

Statistical Quality Control

• Rigorous statistical analysis for checking processes, materials, products, and services
• Determines acceptability and takes corrective action. Includes sample checking, random sampling, and metrics determination
• Six Sigma is a common example

Work Processes

• Process reengineering: Analyzing and redesigning work processes for improvement

• Work process: A related group of tasks creating value for customers

• Workflow: Movement of work from one point to another for manufacturing or service delivery

• Process value analysis: Identifying and evaluating core processes based on performance contributions

• Steps in reengineering core processes: Identifying core processes, mapping workflows & core processes, evaluating all core process tasks, eliminating unnecessary tasks, reducing delays/errors, and improving method for sharing work

Test your understanding of Chapter 17 from the Third Canadian Edition of the management textbook by Schermerhorn and Wright. This chapter dives into Operations and Services Management, including concepts like operations essentials and value chain management. Answer study questions to reinforce your knowledge.