Podcast
Questions and Answers
What does productivity represent in an operations management context?
What does productivity represent in an operations management context?
Which of the following best describes multifactor productivity?
Which of the following best describes multifactor productivity?
In the context of labor productivity, which of the following inputs is considered?
In the context of labor productivity, which of the following inputs is considered?
What is a characteristic of total productivity measures?
What is a characteristic of total productivity measures?
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Which of the following statements about efficiency and effectiveness is correct?
Which of the following statements about efficiency and effectiveness is correct?
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What does the productivity growth rate compare?
What does the productivity growth rate compare?
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Which productivity measure incorporates a variety of inputs into its calculation?
Which productivity measure incorporates a variety of inputs into its calculation?
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If a company produced 150 units with 200 hours of labor one week and 180 units with 250 hours the next week, what type of analysis could be conducted?
If a company produced 150 units with 200 hours of labor one week and 180 units with 250 hours the next week, what type of analysis could be conducted?
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What trend is indicated by a shift from batch shipments to just-in-time shipments?
What trend is indicated by a shift from batch shipments to just-in-time shipments?
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Which factor is contributing to the future focus on mass customization?
Which factor is contributing to the future focus on mass customization?
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How are supply-chain partners expected to evolve according to future challenges?
How are supply-chain partners expected to evolve according to future challenges?
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What challenge does shorter product life cycles present to operations managers?
What challenge does shorter product life cycles present to operations managers?
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Which aspect of production management is focused on environmental sustainability?
Which aspect of production management is focused on environmental sustainability?
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What does the term 'empowered employees' refer to in a knowledge-based society?
What does the term 'empowered employees' refer to in a knowledge-based society?
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What is a significant change in purchasing strategies from the past to the future?
What is a significant change in purchasing strategies from the past to the future?
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What driving force is pushing towards collaborative designs in production?
What driving force is pushing towards collaborative designs in production?
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What was the primary discovery attributed to James Watt in 1769?
What was the primary discovery attributed to James Watt in 1769?
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Who is credited with the introduction of the moving assembly line in 1913?
Who is credited with the introduction of the moving assembly line in 1913?
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Which theory was developed by Elton Mayo during the 1930s?
Which theory was developed by Elton Mayo during the 1930s?
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In which decade did Taiichi Ohno develop the Just-In-Time (JIT) production system?
In which decade did Taiichi Ohno develop the Just-In-Time (JIT) production system?
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Which of the following individuals is known for establishing the principles of scientific management?
Which of the following individuals is known for establishing the principles of scientific management?
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What type of management concept was introduced by George Dantzig in 1947?
What type of management concept was introduced by George Dantzig in 1947?
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Which motivation theory was proposed by Frederick Herzberg in the 1950s?
Which motivation theory was proposed by Frederick Herzberg in the 1950s?
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Which of the following management strategies focuses on continuous improvement in quality?
Which of the following management strategies focuses on continuous improvement in quality?
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What characterizes the analytic production method?
What characterizes the analytic production method?
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Which of the following is an example of a synthetic production process?
Which of the following is an example of a synthetic production process?
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Which production process operates continuously, typically for 24 hours a day?
Which production process operates continuously, typically for 24 hours a day?
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What aspect is typically NOT true about continuous flow production?
What aspect is typically NOT true about continuous flow production?
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What defines flow type production?
What defines flow type production?
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In the context of continuous production, what is a characteristic of mass production?
In the context of continuous production, what is a characteristic of mass production?
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What is the primary purpose of a production cell?
What is the primary purpose of a production cell?
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Which of the following is NOT a characteristic of flow type production?
Which of the following is NOT a characteristic of flow type production?
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What is a primary characteristic of mass production?
What is a primary characteristic of mass production?
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What is a limitation of mass production related to machinery?
What is a limitation of mass production related to machinery?
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Which of the following features is characteristic of an intermittent flow system?
Which of the following features is characteristic of an intermittent flow system?
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How does the cycle time in mass production get determined?
How does the cycle time in mass production get determined?
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What type of machinery is typically used in mass production?
What type of machinery is typically used in mass production?
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What defines the production volume in an intermittent flow system?
What defines the production volume in an intermittent flow system?
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What affects the material flow in mass production?
What affects the material flow in mass production?
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Which of the following best describes the production strategy of an intermittent flow system?
Which of the following best describes the production strategy of an intermittent flow system?
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What is the primary objective of a location strategy?
What is the primary objective of a location strategy?
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Which of the following factors is NOT typically affected by location decisions?
Which of the following factors is NOT typically affected by location decisions?
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Why are location decisions considered long-term commitments?
Why are location decisions considered long-term commitments?
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What type of focus characterizes industrial location decisions?
What type of focus characterizes industrial location decisions?
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Which location option would be most suitable for addressing an increase in demand that can't be met by current facilities?
Which location option would be most suitable for addressing an increase in demand that can't be met by current facilities?
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Which factor is most critical for location decisions of service organizations?
Which factor is most critical for location decisions of service organizations?
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What is one of the key steps in making location decisions?
What is one of the key steps in making location decisions?
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Which organization would most likely prioritize being close to its market?
Which organization would most likely prioritize being close to its market?
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Which of the following is likely a significant reason for making a location decision?
Which of the following is likely a significant reason for making a location decision?
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What often characterizes location decisions based on low-cost objectives?
What often characterizes location decisions based on low-cost objectives?
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Study Notes
Production/Operations Management
- This is a presentation on Production/Operations Management, likely for a course.
- The presenter is Assoc. Prof. Dr. Arzu Karaman Akgül.
Why Production is Conceptualized as a System
- Production can be viewed as an "INPUT-TRANSFORMATION-OUTPUT" system.
Introduction to Operations Management
- Production can be seen as a system with inputs, transformation processes, and outputs.
System
- A system is designed to achieve pre-defined goals using people and resources.
- Systems are composed of smaller, interconnected subsystems.
- Systems have defined boundaries.
Classification of Systems
- Systems can be categorized as open or closed.
- The question of whether production is an open or closed system is presented.
Production Systems - Inputs
- Inputs to a production system include labor, materials, information, human resources, equipment, facilities, technology, energy, know-how, information, capital, and entrepreneurship.
Production Systems - Transformation
- Transformation processes involve physical, chemical, and biological processes.
- Storage and transportation are also considered transformation processes.
Production Systems - Outputs
- Direct outputs of production include products, services, and semi-products.
- Indirect outputs include waste and pollution.
Feed Back and Control
- Information about outputs, transformation processes, and inputs is fed back to management.
- This information is compared to expectations.
- Corrective action is needed if there are discrepancies.
- Feed back equals control
Examples of Production Systems
- Various examples of diverse systems like hospitals, restaurants, automobile plants, and universities are provided, showcasing their respective inputs, conversion processes, and outputs.
Evolution of Operations and Supply Chain Management
- Supply chain management involves managing the flow of information, products, and services across a network of customers, enterprises, and supply chain partners. A diagram of the supply chain is presented.
Changing Challenges for the Operations Manager
- Past challenges include local/national focus, batch shipments, low-bid purchasing, and lengthy product development.
- Causes for these challenges include low-cost, reliable worldwide communication and transportation networks, cost of capital, quality emphasis, and shorter life cycles.
- Future challenges are global focus, just-in-time shipments, supply-chain partners, rapid product development, alliances, and collaborative designs.
- Other past/current/future challenges & explanations are detailed.
Metrics of Operations Management - Productivity
- Productivity is a measure of output relative to input.
- Productivity = Units Produced / Input Used
- Different types of productivity measures are available for labor, machine, energy, etc.
Labor Productivity
- An example is provided showcasing two workers painting twenty-four tables in eight hours.
- Input: 16 hours of labor; Output: 24 painted tables.
Multifactor Productivity
- All inputs and outputs are converted to a monetary value, allowing for comprehensive analysis. This example is detailed.
Productivity Growth Rate
- Comparing the productivity of a process at a particular time to an earlier one shows productivity change over time.
Efficiency-Effectiveness
- Efficiency refers to "doing things right" - following established processes and procedures.
- Effectiveness refers to "doing the right things" - ensuring alignment with overall goals.
- A scenario illustrating the difference between effectiveness and efficiency is presented.
Historical Events in Operations Management
- Key events and their originators are detailed. This includes tables outlining the era, event, and originator along with relevant dates.
- The table has multiple sections including notable events in the Industrial Revolution, Scientific Management, Human Relations, Operations Research, Quality Revolution, and Internet Revolution eras.
Production Process Types
- Production processes are categorized based on volume (low, high, or mid-volume), variety (number of product options), and flow (indicates the intensity and nature of activities along the production line).
Process Types: Primary/Analytic/Synthetic/Fabrication/Assembly
- Primary operations involve breaking down resources like extracting minerals from ore.
- Synthetic operations involve combining resources to create more complex products, like synthetic rubber production.
- Fabrication involves shaping raw materials into finished products.
- Assembly combines parts to create a finished product.
Types of Production: Continuous/Intermittent/Project
- Continuous flow production involves 24/7 operations with infrequent maintenance.
- Items are produced in large quantities, often for stock.
- Intermittent flow production responds to customer orders.
- Project production deals with unique products tailored to each customer.
Continuous Flow
- Production facilities are arranged based on the order of operations in a continuous flow.
- Items are made to flow through the sequence of operations using material handling tools (conveyors, transfer devices, etc).
- Products are produced in advance of demand. Manufacturing equipment is specialized, and products have limited variations.
Types of Continuous Production: Flow Type/Mass Production
- Flow type production arranges resources based on the sequence of operations.
- Mass production focuses on standardized products in large quantities/batches.
Mass Production
- Key characteristics of mass production include standardization, uniform flow of material, predetermined sequence of operations, dedicated special-purpose machines for high volume and output rates, shorter cycle time, low inventory.
- Advantages and limitations are outlined.
Intermittent Flow
- Intermittent flow production starts and stops at varying intervals, responding to customer orders for varied product needs.
Characteristics of Intermittent Flow
- Features include wide variety of products, small volumes, general-purpose machines, customized products, fluctuating demand, dynamic or adaptable operations based on specific orders.
Batch Type of Production
- Similar items are produced in batches as jobs move through different functional departments.
Advantages of Batch Production
- Better utilization of plant and machinery
- Promotes functional specialization
- Lower cost per unit compared to job shop production
- Flexibility to accommodate differing products
Limitations of Batch Production
- Complex material handling due to varied, often lengthy flows
- Complex production planning and control
- Higher work-in-process inventory compared to continuous production
- Higher setup costs
Job Shop Type of Production
- High variety, low-volume production of customized products
- Each product requires its own unique set of processing steps
Advantages of Job Shop Production
- High adaptability to diverse products
- High skill levels of workforce
Limitations of Job Shop Production
- Low productivity due to high variety and customized needs
- High work-in-process inventory
- Difficulties in planning and coordinating numerous, often highly specialized tasks within the production process
Comparison of Intermittent and Continuous Operations
- A comparison table details the differences in product variety, degree of standardization, organization, resources/flow pattern, factors driving production, critical resources, and more between intermittent and repetitive operations.
Project Type of Production
- Unique products tailored to specific customer needs
- Non-repetitive, with flexible equipment, skills, and processes
- Products are often at a fixed location, with equipment brought to the product
Facility Layout Planning
- Deciding the best physical arrangement of resources in a facility.
- Layout planning significantly affects productivity and short-term operations, and requires substantial investments.
Objectives of Facility Layout
- Minimize material handling costs.
- Efficient use of facilities (machines, equipment, labor).
- Eliminate waste and non-value-added processes such as unnecessary movements.
Basis for Facility Planning
- Facilitating organizational structure and interaction between workers during the production process.
- Minimizing cycle time and investment.
- Providing convenience, safety, comfort, and flexibility to adapt to change.
Basic Types of Layouts
- Four basic layout types include product layouts (optimized for efficiency with specific products), process layouts (grouping similar resources together), hybrid layouts (blending aspects of both process and product), and fixed-position layouts (used when products are large or immobile).
Product Layouts
- Characteristics include a fixed and repetitive order for job progress and machine visits, stable demand, high production volume, low variety, special-purpose equipment, and less-skilled workers. A diagram of the product layout is included.
Process Layouts
- Functional grouping of machines and skilled workers for highly customized products with fluctuating demand and low-volume production. A diagram of process layout is included.
Differences Between Product and Process Layouts (Inventory/Material Handling/Scheduling)
- Differences in inventory levels, material handling, and scheduling are detailed.
Hybrid (Cellular) Layouts
- Combining elements of product and process layouts providing efficiencies of product layouts with the flexibility of process.
Cellular Layouts
- Grouping machines that process similar parts into cells to improve efficiency and reduce material handling.
- Related concept of group technology (grouping parts into similar categories/families)
Advantages/Disadvantages of Cellular Layouts
- Advantages include reduced material handling and time, setup time, and work-in-process inventory, and better use of human and scheduling resources.
- Disadvantages may include difficulties in forming cells with unbalanced part families or production volumes, reassignment of workers to cells requiring multi-skilling, and equipment duplication.
Process vs. Cellular Layout
- A table comparing process and cellular layouts based on dimensions like number of moves, travel paths, job waiting times, and more is presented.
Fixed-Position Layout
- Used for large products that cannot be moved (e.g.: buildings, ships).
Facility Location Decision
- Facility location is the geographic site selection process for a firm's operations.
- It's a critical strategic decision made infrequently, aiming to maximize location benefits.
Considerations in Location Decision
- Includes cost considerations, convenience for attracting customers, flexibility, and long-term commitment of resources.
Need for Location Decision
- Reasons for location decisions include adding new facilities, expanding market share, meeting growing demands, and shifts in market requirements or business costs.
Location Options
- Facility expansion, new facility construction, moving to a different facility, adding or closing existing facilities.
General Procedure for Making Location Decisions
- Establishing criteria for choosing location alternatives.
- Identifying crucial factors (marketing areas, raw materials availability, etc).
- Developing alternatives by assessing regions, communities, and specific site options.
- Evaluating alternatives and selecting the best option.
Industrial Location Decisions/Service Location Decisions
- Cost focus for industrial locations, emphasizing minimizing production and transportation costs.
- Revenue focus for service locations, aiming to maximize opportunities in high-market-contact areas.
Organizations that Need to be Close to Markets/ Factors Affecting Location Decisions
- Organizations like government agencies, retail sales, and various service industries need to be close to their customers. Considerations for any location decision include numerous factors. Labor productivity, costs/tangible and intangible, political risk, values/culture, proximity to markets/suppliers etc.
Location Decision Sequence
- A sequential approach, considering the country, region/community, and site decisions.
Globalization
- Global facilities expansion considerations, trade barriers, cheaper labor, and possible political risks (technology loss, infrastructure issues, high inflation).
Key Success Factors for Each Decision (Country, Region/Community, Site)
- Detailed factors considered for each stage of the facility location decision (political risks, cultural conditions, labor markets, market availability, utility costs, etc).
Methods of Evaluating Location Alternatives
- Methods include factor-rating methods, locational break-even analysis, center-of-gravity methods, and transportation models.
Factor-Rating Method
- Detailed analysis based on key success factors weighted by importance, scored, and ranked for multiple locations. This includes an example illustrating the scoring process for facility location decisions..
Locational Break-Even Analysis
- Determining fixed vs. variable costs per location for optimal site selection based on projected production volume (includes an example illustration).
Center-of-Gravity Method/Load Distance Model
- Modeling to find the optimal location that minimizes transportation/distribution costs by considering existing locations, shipped quantities, and transportation distances.
Example of Load Distance Model
- An example problem of the Load Distance model is described, indicating the goal of choosing the location (among several alternatives) which minimizes the total load-distance score.
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Description
Test your knowledge on various aspects of productivity in operations management. This quiz covers definitions, metrics, and trends that affect efficiency and effectiveness in production processes. Evaluate your understanding of multifactor productivity, labor inputs, and the challenges faced by modern operations managers.