Operations Management Chapter 1

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Questions and Answers

What is the purpose of break areas in a factory?

Provide a place for employees to take breaks

What type of person is usually justified in a plant when it approaches 500 people?

Registered nurse

How are space allocations for production aisles usually determined?

Total production space is increased by a factor of 50%

What is the general rule for sizing lounges in shipping and receiving areas?

Multiply the number of waiting drivers by 25 square feet Signup and view all the answers

A major aisle in a plant should be long and winding.

False Signup and view all the answers

What is the basic definition of Operations Management?

Operation Management is the design, operation, and improvement of systems that create and deliver an organization's products and services. Signup and view all the answers

What are the major functional areas that must interact to achieve an organization's goals?

Operations, Marketing, and Finance Signup and view all the answers

Goods are tangible products that can be stored, transported, and purchased for later use.

True Signup and view all the answers

Production System consists of _ subsystem, subsystem, and __ subsystem.

input, transformation/conversion, control Signup and view all the answers

Match the organizational functions with their areas of focus:

Marketing = Customer needs and desires Finance = Capital investments and financial management Production/operations = Planning, coordinating, and controlling resources Signup and view all the answers

What is the primary concern of an operations manager?

Activities of the conversion process Signup and view all the answers

Define production system in the context of operations management.

A production system takes inputs and converts them into outputs. It involves the step by step conversion of raw materials and other inputs into finished products or services. Signup and view all the answers

Batch production involves dividing a product into different jobs and producing them in __________ or batches.

lots Signup and view all the answers

Match the following production types with their descriptions:

Flow Production = Operates constantly without irregularities Job Production = Involves highly automated material handling Analytical Process of Production = Breaks raw materials into different products Assembling Process of Production = Combines multiple components into finished products Signup and view all the answers

What does FP stand for in the context of the content?

Facilities Planning Signup and view all the answers

How many parking lots may be needed according to the content?

Three Signup and view all the answers

One shower per employee is recommended in locker rooms?

False Signup and view all the answers

What does ADA stand for in the context of parking facilities design? American with Disabilities __________.

Act Signup and view all the answers

What is the recommended width for driveways for single lane usage?

11 feet Signup and view all the answers

Study Notes

Introduction to Operations Management

Operations Management (OM) is concerned with the acquisition of raw materials, conversion into finished products, and supply of those products to customers.
OM is a functional field of business with clear lines of management responsibility.

Organizational Functions

All organizations perform at least three basic functions: Production/Operations, Marketing, and Finance.
These functions must interact to achieve organizational goals.

OM Systems

Production Systems: create tangible products (e.g., refrigerators, bread).
Operations Systems: produce services (e.g., insurance, healthcare).
Basic components of OM systems:
- Inputs
- Transformation/Conversion subsystem
- Output
- Control subsystem

Transformation/Conversion Subsystem

Converts inputs into goods or services.
Components: Concepts, Procedures, Non-equipment technologies, Rules, Guidelines, Steps, etc.
Examples: Cutting, drilling, transporting, teaching, packing, mixing, consulting, copying, faxing.

Control Subsystem

Ensures desired outputs are obtained by measuring and comparing to established standards.

Career Opportunities in OM

Operations manager
Production analyst
Production manager
Industrial engineer
Time study analyst
Inventory manager
Quality analyst
Quality manager

Characteristics of Service and Goods

Service:
- Intangible product
- Produced and consumed at the same time
- Difficulty in measuring output
- High customer interaction
- Inconsistent product definition
- Often knowledge-based
- Shorter response time
- Time-perishable capacity
- Labor intensive
Goods:
- Tangible product
- Consistent product definition
- Production usually separate from consumption
- Can be inventoried
- Low customer interaction
- Longer response time
- Capital intensive

Manufacturing versus Service Systems

Similarities:
- Both use technology
- Both have quality, productivity, and response issues
- Both must forecast demand
- Both have capacity, layout, and location issues
Differences:
- Output: tangible or intangible
- Customer contact: extensive or little
- Lead time: short or long
- Intensity: labor or capital

Major Issues in OM

Design:
- Product and service design
- Process and capacity design
- Facility location and layout
Planning/Scheduling:
- Forecasting
- Planning
- Scheduling
Materials management:
- Inventory control and management
- Supply chain management
Quality:
- Quality assurance - Standards & Awards
- Statistical Quality Control
- Total Quality Management (TQM)

OM in Practice

OM has the most diverse organizational function
Manages the transformation process
OM has many faces and names (e.g., V.P. operations, Director of supply chains, Manufacturing manager, Plant manager, Quality specialists)

New Challenges in OM

From local or national focus to global focus
From batch shipments to just-in-time
From low bid purchasing to supply chain partnering
From lengthy product development to rapid product development and alliances
From standard products to mass customization
From job specialization to empowered employees and teams### Facility Planning
Facility planning involves the design, layout, and accommodation of people, machines, and activities within a physical spatial environment.
It is concerned with the determination of how the facility's tangible fixed assets best support achieving the activity's objectives.

Importance of Facility Planning

Facility planning determines how an activity's tangible fixed assets best support achieving the activity's objectives.
It involves the determination of how the location of a facility supports meeting the facility's objectives.
It affects the management of a facility's capability to adapt to change and satisfy future requirements.

Disciplines Involved in Facility Planning

Civil Engineers
Electrical Engineers
Mechanical Engineers
Industrial Engineers
Architects
Consultants
General contractors
Managers
Real estate brokers
Urban planners

Applications of Facility Planning

Planning of a new hospital
An assembly department
An existing warehouse
The baggage department in an airport
Department building of IE in EMU
A production plant
A retail store
A dormitory
A bank
An office
A cinema
A parking lot

Facility Planning Process

Define the problem
Analyze the problem
Determine the space requirements for all activities
Evaluate the alternatives
Select the preferred design
Implement the design
Maintain and adapt the plan

Role of Industrial Engineers in Facility Planning

Industrial engineers bring value to the overall design by assisting in operations planning, concept design, and layout evaluation.
They use their skills and analytical tools to determine site selection, space requirements, flow/activity analysis, and space/function relationship programming.

Employee Services - Space Requirements

Employee services include parking lots, cafeterias, locker rooms, restrooms, and recreational facilities.
The size of these facilities is determined by the number of employees and other factors.

Parking Lots

The goal is to provide adequate space with a convenient location.
Three parking lots may be needed: manufacturing employee parking, office employee parking, and visitor parking.
The facilities planner must incorporate the requirements of the ADA (American with Disabilities Act) of 1989.

Locker Rooms

Locker rooms give employees space to change from their street clothes to their work clothes and a place to keep their personal effects while working.
Showers, toilets, washbasins, lockers, and benches are all part of a well-equipped locker room.
The size of the locker room can be initially sized by multiplying the number of employees by 4 square feet per employee.

Toilets and Restrooms

As a rule of thumb, one toilet is required for every 20 employees, and restrooms should be no farther than 200 feet away from the employee.
Special accommodations and provisions must be made for people with disabilities as required by ADA.

Cafeterias or Lunchrooms

A cafeteria feeds a lot of people in a short time.
Vending machines can serve very complete meals.
Mobile vendors may be used for small plants.

Recreational Facilities

Health-conscious employees are better employees.
The plant layout designer must talk with management to understand what facilities need to be included.

Aisles

Aisles are for movement of people, equipment, and material and must be sized for that use.
Aisles should be long and straight.

Medical Facilities

Medical facilities vary from 6 x 6 foot first aid rooms to full-fledged hospitals.
In smaller plants, first aid is handled by trained employees at the plant.
When a plant approaches 500 people, a registered nurse is usually justified.

Break Areas and Lounges

If the lunchroom is too far away from groups of employees, a break area should be provided.
Lounges are usually found in shipping and receiving areas for visiting truck drivers to wait for their loads.

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Description

This quiz covers the basics of operations management, including its definition, components, and role in organizations. It also explores the differences between manufacturing and service systems.