Operations, Quality, Technology, and Information SystemsLearning OutcomesLearning Outcomes (cont’d)OperationsClassifying Operations SystemsSlide 6PowerPoint PresentationFlexibilityFlexibility (cont’d)Slide 10Slide 11Designing Operations SystemsFacility LayoutFacility LocationSlide 15Managing Operations SystemsSlide 17Planning SheetGantt Chart (Order by Week)PERT NetworkDeveloping a PERT NetworkSlide 22Inventory Control within the Systems ProcessMaterials Requirements PlanningQuality ControlSix Rules of Customer Human RelationsStatistical Quality ControlStatistical Quality Control StepsStatistical Process Control Chart by Ounces and Time of DayThe Information Systems ProcessSlide 31Types of Information SystemsTypes of Information Systems (cont’d)Slide 34Information Networks and TechnologyInformation NetworkPowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookOperations, Quality, Technology, and Operations, Quality, Technology, and Information SystemsInformation SystemsOperations, Quality, Technology, and Operations, Quality, Technology, and Information SystemsInformation SystemsChapter 15Chapter 15Chapter 15Chapter 15Copyright Copyright © © 2003 South-Western/Thomson Learning. All rights reserved.2003 South-Western/Thomson Learning. All rights reserved.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–2Learning OutcomesLearning OutcomesCopyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–3Learning Outcomes (cont’d)Learning Outcomes (cont’d)Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–4OperationsOperationsExhibit 15–1Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–5Classifying Operations SystemsClassifying Operations Systems•Tangibility of Products–Tangible: goods (computers)–Intangible: services (house cleaning)–Mixed: goods and services (airlines).Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–6Classifying Operations SystemsClassifying Operations Systems•Customer Involvement–Make-to-stock (MTS)•Producing products in anticipation of demand with a common design and price; low customer involvement.–Make-to-order (MTO)•Producing products after receipt of an order; high customer involvement.–Assemble-to-order (ATO)•Producing a standard product with some customized features; moderate customer involvementCopyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–7Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–8FlexibilityFlexibility•Operations Flexibility–Products are produced continuously, repetitively, in batches, or individually in different volumes (amounts) and varieties (types).–Continuous process operations (CPO)•Produce outputs that are not discrete units.–Repetitive process operations (RPO)•Produce outputs in an assembly-line-type structure.–Batch process operations (BPO)•Produce different outputs with the same resources.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–9Flexibility (cont’d)Flexibility (cont’d)•Operations Flexibility–Individual process operations (IPO)•Produce output to customer specifications.–Project process operations•Produce low-volume outputs that take relatively long time to complete.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–10Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–11Classifying Operations SystemsClassifying Operations SystemsExhibit 15–2Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–12Designing Operations SystemsDesigning Operations Systems•Product Mix–The number of product lines, number of products in each line, and the mixture of goods and services within each line.•Product Design–New or improved product development.•Quality As a Virtue of Design–Products designed with cross-functional team input have fewer operations (manufacturing) problems.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–13Facility LayoutFacility Layout•Layout–The spatial arrangement of operations units relative to each other.•Facility Layout–The arrangement of operations by:•Product•Process•Cellular•Fixed positionCopyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–14Facility LocationFacility Location•Location–The physical geographic site of facilities•Location Factors–Cost–Near inputs, customers, and/or competitors–Transportation–Access to Human Resources–Community interest–Quality of life issues–Number of facilitiesCopyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–15Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–16Managing Operations SystemsManaging Operations Systems•Organizing and Leading–Planning schedules•Scheduling and routing–Priority Scheduling•First come-first served•Earliest due date•Shortest operating time•Combination•Planning Sheet–State an objective and list the sequence and timing of each activity and who will carry it out.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–17Managing Operations SystemsManaging Operations Systems•Planning Sheet–State an objective and list the sequence and timing of each activity and who will carry it out.•Gantt Chart–Uses bars to illustrate a schedule and progress toward the objective over a period of time.–Is useful as both a planning and a control tool.•Performance Evaluation and Review (PERT)–A network schedule that illustrates the dependence of activities.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–18Planning SheetPlanning SheetExhibit 15–4Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–19Gantt Chart (Order by Week)Gantt Chart (Order by Week)Exhibit 15–5Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–20PERT NetworkPERT NetworkExhibit 15–6Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 15–21Developing a PERT NetworkDeveloping a PERT Network1. List all the activities/events that must be completed.1. List all the activities/events that must be completed.2. Determine the time it will take to complete each activity