OPMT 303 1st Edition Lecture 2 Current Lecture Pre industrial society Game against nature Pre dominant activity agricultural mining Use of human labor raw muscle power Standard of living subsistence Structure authoritative Technology simple hand tools Industrial Society Game against fabricated nature Pre dominant activity goods production Use of human labor machine tending Standard of living quality of goods Structure bureaucratic hierarchy Technology machines Post Industrial Society Game among persons Pre dominant activity services Use of human labor creative intellectual Standard of living health Structure interdependent global Technology information 3 primary areas of technology 1 Product Technology New products and services designed by engineers 2 Process Technology New methods to accomplish tasks 3 Information Technology Ways to acquire process and transmit information Technology has been used to achieve social progress commit crimes and threaten social values Ex Identity thef Ex Music industry illegal file sharing online SIX GENERAL ETHICAL PRINCIPLES IN CHOOSING NEW TECHNOLOGY 1 Golden rule do unto others as you would have them do to you 2 Descartes rule of change if an actions can t be taken multiple times then it is not the right action to take 3 Immanuel Kant s categorical imperative if action is not right for the whole group then it is not right for anyone 4 Utilitarian Principle take action that gets the greatest value 5 Risk Aversion Principle take the action that causes the least potential harm 6 No Free Lunch rule virtually all objects are owned by someone else and that owner may want compensation Why POM 35 of all jobs are in operations management Ex Customer service quality assurance production planning etc CHAPTER 2 How does marketing influence competitiveness 1 Identifying consumer wants and needs 2 Pricing and quality 3 Advertising and promoting How does operations influence competitiveness 1 2 3 4 5 6 7 8 Product and service design Cost Location Quality Quick response Flexibility in volume and variety Inventory management Supply chain management 9 Service 10 Managers and workers time is the most important critical resources PRODUCTIVITY Productivity output input Used to track performance over time Partial productivity is used for a single output Ex Output labor Multifactor productivity is used for more than one input Ex Output labor machine How to improve productivity 1 Develop productivity measures 2 Find bottlenecks a Anything in a system that restricts the flow of products through the system 3 Develop methods for achieving productivity improvements 4 Establish reasonable goals 5 Consider incentives to reward workers for contributions 6 Measure improvements and publicize them 7 Productivity vs efficiency MANUFACTURING RESOURCE PLANNING 8 elements described by objective inputs characteristics outputs and who is responsible 1 2 3 4 5 6 7 8 Strategic plan Business plan Production plan Master production schedule Rough cut capacity plan Material requirements plan Capacity requirements plan Production activity control STRATEGIC PLAN Objective to determine the MISSION what kind of business what customers and what goal profit Input changes in environment Ex Competition economic trends technologies social changes political changes and availability of resources SWOT analysis strengths weaknesses opportunities and threats Output business plan production plan Who is responsible owner CEO or top management Example John is a high school student He would like to have a career in business have a good job and earn enough income to live comfortably Mission live a good life Goal successful career good income Strategy obtain college education Tactics select college and major Operations register buy books take course and study BUSINESS PLAN Objective to develop and statement of income projections costs and profits balance sheet and cash flow statement Input strategic plan Characteristics brings together into one coherent package the plans and expectations of the firm s operations Usually up to two years or on a monthly or quarterly basis Output a production plan Responsible vice president for finance