Transcript Thursday afternoon - Villanova University

Thursday afternoon
Operations Management, HR, and MIS
PRODUCTION and
PRODUCTION MANAGEMENT
• Production -- The creation of goods using
land, labor, capital, entrepreneurship and
knowledge (the factors of production).
• Production Management -- All the
activities managers do to help firms create
goods.
DEVELOPMENTS MAKING U.S.
COMPANIES MORE COMPETITIVE
1. Computer-aided design and manufacturing
2. Flexible manufacturing
3. Lean manufacturing
4. Mass customization
CAD/CAM
• Computer-Aided Design (CAD) -- The use of
computers in the design of products.
• Computer-Aided Manufacturing (CAM) -- The
use of computers in the manufacturing of products.
Flexible Manufacturing
• Flexible Manufacturing -- Designing machines to
do multiple tasks so they can produce a variety of
products.
• Sample videos – FMS/CNC (first 70 seconds)
Lean Manufacturing
• Lean Manufacturing -- Using less of everything
than in mass production.
• Compared to others, lean companies:
• Take half the human effort.
• Have half the defects in finished products.
• Require one-third the engineering effort.
• Use half the floor space.
• Carry 90% less inventory.
Mass Customization
• Mass Customization -- Tailoring products to meet
the needs of a large number of individual customers.
• More manufacturers are learning to customize.
• Mass customization exists in the service sector
too.
• Nike ID (1:30)
OPERATIONS MANAGEMENT
• Operations Management -- A specialized area in
management that converts or transforms resources into
goods and services. Broader than production
management, which usually refers to just manufacturing
operations.
• Operations management includes:
• Inventory management
• Quality control
• Production scheduling
• Follow-up services
Operations Management
• Operations management planning helps solve
problems like:
- Facility location
- Facility
- Materials requirement planning
- Purchasing
- Inventory control
- Quality control
OM Tools
• PERT
• Gantt Charts
PERT
• Program Evaluation and Review
Technique (PERT) -- A method for
analyzing the tasks involved in completing
a given project and estimating the time
needed.
Steps Involved in PERT
1. Analyzing and sequencing tasks
2. Estimating the time needed to complete each task
3. Drawing a PERT network illustrating the first two
steps
4. Identifying the critical path
•
Critical Path -- The sequence of tasks that takes the
longest time to complete. Any delay here delays the
overall completion time…
PERT Chart for Music Video
Gantt Charts
• Gantt Chart – A bar graph that shows
what projects are being worked on and
how much has been completed.
GANTT CHART for a
DOLL FACTORY (at end of week 3)
MRP and ERP
• Materials Requirement Planning (MRP) -- A
computer-based operations management system
that uses sales forecasts to make sure parts and
materials are available when needed.
• Enterprise Resource Planning (ERP) -- A newer
version of MRP, combines computerized functions
into a single integrated software program using a
single database. (includes operational and
financial info)
Purchasing
• Purchasing -- The function that searches
for high-quality material resources, finds
the best suppliers and negotiates the best
price for goods and services.
Inventory Management
• Just-in-Time (JIT) Inventory Control -The production process in which a
minimum of inventory is kept and parts,
supplies and other needs are delivered
just in time to go on the assembly line.
• To work effectively, the process requires
excellent coordination with suppliers.
Quality Control
• Quality -- Consistently producing what the
customer wants while reducing errors
before and after delivery.
• Six Sigma Quality -- A quality measure
that allows only 3.4 defects per million
opportunities.
Quality of Performance,
aka Quality of Design
• The quality of the materials, features,
skill level, etc. that goes into a product.
• There is a direct relationship between
costs and quality of performance.
• Example – McDonald’s vs. Le Bec Fin
Quality of Conformance
• When the overwhelming majority of
products produced conform to design
specifications and are free from defects.
• There is an indirect (inverse) relationship
between costs and quality of
conformance.
• Example – when you go to Chipotle,
whether in Ardmore or Santa Barbara, you
are confident that your vegetarian burrito
will be the same in both places.
Costs of Quality
• Measures the costs associated poor quality;
the goal is to minimize the total costs of
quality as a percentage of sales
• There are four categories of quality costs:
– Prevention
– Appraisal
– Internal failure
– External failure
• There are tradeoffs between these categories
MANUFACTURING in the U.S.
• From 2001 to 2009, manufacturing output in the
U.S. rose 4% each year.
• The U.S. is still the world’s leading manufacturer.
• Almost 25% of all goods produced each year
come from the U.S.
Human Resource Management
HRM
• Human Resource Management -- The process of
determining human resource needs and then
recruiting, selecting, developing, motivating,
evaluating, compensating and scheduling employees
to achieve organizational goals.
• HRM’s role has grown because:
1. Increased recognition of employees as a
resource.
2. Changes in law that rewrote old workplace
practices.
Minding the Law in HR
• Employers must know the law and act
accordingly.
• Legislation affects all areas of HRM.
• Court cases highlight that sometimes it’s
proper to go beyond providing equal rights.
• Changes in law and legislation occur
regularly.
The HR Planning Process
• Preparing a human resource inventory of
employees.
• Preparing a job analysis.
• Assessing future human resource demand.
• Assessing future labor supply.
• Establishing a strategic plan.
HR Activities
• Recruitment -- The set of activities for obtaining the
right number of qualified people at the right time.
• Selection -- The process of gathering information and
deciding who should be hired, under legal guidelines,
to fit the needs of the organization and individuals.
• Training (short-term skills) and Development
(long-term abilities)-- All attempts to improve
productivity by increasing an employee’s ability to
perform.
• Performance Appraisal -- An evaluation that
measures employee performance against established
standards in order to make decisions about
promotions, compensation, training or termination.
Developing Effective Managers
• Management Development -- The process of training
and educating employees to become good managers and
tracking the progress of their skills over time.
• Management training includes:
-
On-the-job coaching
-
Understudy positions
-
Job rotation
-
Off-the-job courses and training
-
GE’s FMP program
Using Networks and Mentors
• Networking -- Establishing and maintaining contacts with key
managers in and out of the organization and using those contacts to
develop relationships.
• Mentors -- Managers who supervise, coach and guide selected
lower-level employees by acting as corporate sponsors.
• Networking and mentoring go beyond the work environment.
• When Jack Welch (former chairman of GE) gave a guest lecture at MIT's
Sloan School of Management in 2005, someone in the crowd asked, "What
should we be learning in business school?" Welch's reply: "Just concentrate
on networking. Everything else you need to know, you can learn on the
job." - The trouble with MBAs - www.fortune.com, April 23, 2007
Six Steps of Performance Appraisal
1. Establishing performance standards that are
understandable, measurable and reasonable.
2. Clearly communicating those standards.
3. Evaluating performance against the standards.
4. Discussing the results with employees.
5. Taking corrective action.
6. Using the results to make decisions.
Compensation Programs
• A managed and competitive compensation program
helps:
-
Attract the kinds of employees the business needs.
-
Build employee incentive to work efficiently and productively.
-
Keep valued employees from going to competitors or starting
their own firm.
-
Maintain a competitive market position by keeping costs low due
to high productivity from a satisfied workforce.
-
Provide employee financial security through wages and fringe
benefits.
Fringe Benefits
• Fringe Benefits -- Sick leave, vacation pay,
pension and health plans that provide
additional compensation to employees
beyond base wages.
• In 1929, Fringe benefits accounted for less
than 2% of payroll cost. Today it’s about 30%.
• Healthcare has been the most significant
increase in fringe benefit cost.
LET’S GO to the BEACH!
Average Vacation Days by Country
Management Information Systems
• Focuses on the Design & Development of Systems; How to
Link Users to Application Software & Other Technologies
(like Multimedia); How to Solve Business Problems With
Computing & Communications Technology …
MIS
• Is “Applied Computer Science”
•
Bridges the Gap Between Theory & Practice
•
Focuses on the Users of Technology
•
Is Close to Business Models & Processes
•
Enables New Business Models – Like eBusiness
•
Assumes Technology + Management …
Business Processes
• Managers now think in terms of business
process - a collection of activities that takes
one or more kinds of input and creates an
output that is of value to the customer
• Take the customer’s perspective
ERP Systems
• Software to allow all business areas to be integrated - finance, sales, production, etc.
• Interactive and real-time processing
• Users interact with computer screen, not printed
data
• Major advantage: access to common data across
business functions -- eliminated redundant data and
communications lags
• SAP is a leader in ERP software
Contemporary Issues in Technology
• HR managers need to recruit workers who are
tech savvy and can train others.
• Technology makes telecommuting available to
almost all companies.
• Information Overload
• Is Technology Good or Bad? Yes.
New HOW DO YOU
ORGANIZE DATA GLUT?
• A data warehouse stores data on a single subject
for a firm over a specific period. eBay
• Petabyte or about 6500 Villanova student
laptops
• Data mining is a technique for looking for hidden
patterns and previously unknown relationships
among the data. Beer and diapers
New Beyond the Internet
• Intranet -- A companywide network closed to public
access that uses Internet-type technology. Novasis
• Extranet -- A semiprivate network that lets more than
one company access the same information or allows
people on different servers to collaborate. May use
leased lines – expensive…
New Computer Networks
• Network Computing System -- Computer systems
that allow personal computers to obtain needed
information from databases on a server.
• Networks connect people to people and data to
save time and money, provide links and let
employees see complete information.
• Thin Client
Cloud Computing
• Cloud Computing -- A form of virtualization which
stores a company’s data and applications at off-site
data centers accessed over the Internet (the cloud).
Google Docs, Mozy
Business Week
Social Networking and Web 2.0
• Millions have developed online profiles on social networking sites
like Facebook and MySpace??.
• Web 2.0 -- The set of tools that allow people to build social and
business connections, share information and collaborate on projects
online.
• YouTube, Facebook, Wikipedia, and Twitter are among the
largest Web 2.0 companies.
• Tomorrow – It’s Friday!
• Steve Jobs graduation speech