Cadena de suministro Mtro. William H. Delano Frier
Module 2 Operations and Productivity
What is Operations Management? Production Is the creation of goods and services. Operations Management Is the series of activities generating value added in the form of goods and services, transforming raw materials into products.
Finishes Goods Characteristics Tangible Consistent definition Production separated from consumers Usually carry inventory Limited end user interaction
Service Characteristics Intangible Produced and consumed in the same place Most of the times is unique High user participation Inconsistent product definition Usually based on knowledge
Organization to produce Goods and Services Main activities: Marketing Generates demand Production / Operations Create the product Finance and accounting- Audit the execution, manage receivables and payments
Organization Commercial Bank Operations Finance Marketing ATM programming, check approval, transaction processes, layout design, security, maintenance. Investments, security, Real Estate. Commercial, financial and personal loans, mortgage loans, trusts.
Organization Manufacturing Operations Facilities, Inventory and Production Control, Quality Assurance, Supply Chain, Manufacturing, Design. Finance / Accounting Marketing Promotional sales, publicity, market analysis.
Evolution
Sales Plan Concept (MRPII) Business Plan Production Plan Feasible Yes Planning Inventory BOM Programming Production Routes Master Planning (MPS) Material Planning (MRP) Capacity Planning Execution Manufacturing Orders Floor Control Feasible Yes Manufacturing Productivity Customer Service No Purchase Orders Purchasing PERFORMANCE DEVELOPMENT No
Challenges With an effective operation consolidation as a result of the synergies. Economies of scale and operations efficiency. Not always true due to differences in culture and technology infrastructure. Hewlett-Packard / Compaq Chrysler / Mercedes Benz
Challenges Develop Flexible Supply Chains to enable a massive configuration of Finished Goods and Services. Expand the portfolio to meet customer expectations. The challenge is not only to manufacture it, but to distribute it effectively.
Challenges Manage global procurement, distribution chains Enable Global ERP production and Centralize & empower where needed. Service Develop a personalized service for each customer. Without loosing productivity. Value-Added Services Pre / Post Sales Production Order Status? Model Changes? Online Help? Efficient use of available Communication and Technology tools. (TICs)
The economic system Processes Inputs Manpower, Management The economic model transforms the inputs into finished goods and services. The productivity increase is due to an efficient use of capital, manpower and management. Feedback Products Finished Goods and Services
Operations and Productivity Productivity Challenges Productivity Variables Manpower Education Nutrition Social Welfare Capital Tools Management Technology Knowledge Usage
Productivity The productivity challenge Involves the productive process improvement What we normally do Reduce resources used Maintain production Maintain the balanced use of resources Increase production The new challenge for globalization Reduce resources used Increase production
Measurement problems The quality can vary even when the input and output quantities remain unchanged. External elements can affect the increase or decrease in productivity.
Productivity Variables ManpowerContributes around 10% of annual growth. ManagementContributes around 52% of annual growth. Capital Contributes around 38% of the annual growth.
Key variables to increase productivity Quality of education Health and nutrition Social environment that enables manpower availability. Maintain and develop skills needed to incorporate new technologies and knowledge.
Operations and Productivity Measurement Productivity = Units Produced / Required Inputs
Operations and Productivity Measurement: Factor Multifactor FACTOR Data Units Produced Labor (hours) Resin (pounds) Capital Invested ($) Energy (BTU) Last Year Now 1000 300 50 10000 3000 1000 275 45 11000 2850 $ per unit (optional) Results Last Year Now Productivity Productivity Productivity Productivity Ratio Increase 3.3333 20.0000 0.1000 0.3333 3.6364 22.2222 0.0909 0.3509 109.0909% 111.1111% 90.9091% 105.2632% 9.0909% 11.1111% -9.0909% 5.2632%
Operations and Productivity Measurement Multifactor Data Last Year Units Produced Labor (hours) Resin (pounds) Capital Invested ($) Energy (BTU) Multifactor 1000 300 50 10000 3000 4850 Now $ per unit (optional) 1000 275 45 11000 2850 4510 10 5 1% 0.5 Results Last Year Now Productivity Productivity Productivity Productivity Ratio Increase 3.3333 20.0000 0.1000 0.3333 0.2062 3.6364 22.2222 0.0909 0.3509 0.2217 109.0909% 111.1111% 90.9091% 105.2632% 107.5388% 9.0909% 11.1111% -9.0909% 5.2632% 7.5388%