Operations Chapter 1

Every piece unique, hand fitted, and made entirely by one person

Adam Smit, production process broken down into a series of small tasks, each performed by different worker

Eli Whitney, allowed manufacture of firearms, clocks, watches, sewing machines, and other goods to shift from customized one at a time production to volume production of standardized parts

Frederick taylor, scientific analysis of work methods

Henry Ford, short assembly time allowing for high volumes

Emphasis on quality and strategic role of operations

An adaptation of mass production that prizes  quality (rather than quantity) and flexibility (rather than efficiency)

• Steam engine - Watt
• Division of labor - Smith
• Interchangeable parts - Whitney

• Principles of scientific management - taylor
• Time and motion studies - gilbreth
• Activity scheduling chart - gantt
• moving assembly line - ford

• Hawthorne studies - mayo
• Motivation theories - Maslow, Herzberg, McGregor

• Linear programing - Dantzig
• Digital computer - Rand
• Simulation, waiting line theory, decision theory, PERT/CPM - operations research groups
• MRP, EDI, EFT, CIM - Orlicky, IMB and others

• JIT - Ohno (Toyota)
• TQM (Total Quality Management) - Deming + Juran
• Strategy and operations - Skinner, Hayes
• Reengineering - Hammer, Champy
• Six Sigma - GE, Motorola

Internet, Ecommerce

• Favorable cost
• Access to international markets
• response to changes in demand
• reliable sources of supply
• Latest trends and technologies

the degree to which a nation can produce goods and services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens

represents how quickly an economy can expand its capacity to supply goods and services

relates output to a combination of inputsInput we usually use is labor hours

• 1. Defining a primary task
• 2. Assessing core competencies / what does the firm do better
• 3. Determining order winners and order qualifiers
• 4. Positioning the firm / how will the firm compete
• 5. Deploying the strategy

• Cost - elimination of waste
• Speed
• Quality - view production as an opportunity to please the customer
• Flexibility - ability of manufacturing to respond to variation
• Innovation

• how firm measures it performance on
• Finances
• Customers
• Processes
• Learning and growing

set of measures to help managers evaluate performance in critical areas