Process Fundamentals

Session 1 Process Fundamentals

OPERATIONS MANAGEMENT Zhongjun Tian Spring 2012

Outline

1.

Introduction to Operations Management

Basics of processes Process strategy Process flowcharts Tools for evaluating process performance

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3. 4.

5.

2

Session 1

Operations Management is…

“The systematic design, direction and control of processes that transform inputs into services and products.”

• Operations Management as a Function

3

Session 1

Why Study Operations Management?

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Operations Management

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One of three major functions (marketing, finance, and operations) of any organization. Affect competitiveness (竞争能力) and the bottom line --the very viability (生存能力) and sustainability (可持续性) of an organization.

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Goal of this course

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Understand the fundamental concepts, problems, and strategies in the operations function of a firm.

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This course covers

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4

Part I: Managing processes, Part II: Managing value chains.

Session 1

Part I: Managing Processes

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Goal --- How to design efficient manufacturing and service processes to produce products or services. Manufacturing processes

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change materials in one or more of the following dimensions: 1. Physical properties 2. Shape 3. Fixed dimensions 4. Surface finish 5. Joining parts and materials.

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If a process isn’t doing at least one of these, then it is a service (non-manufacturing) process.

5 Session 1

What is a process?

• A process is a group of inter-connected tasks that transform various inputs into outputs, using resources.

Input e.g., Material Information Customers

Output Products and services

Resources (e.g., machines, facilities, labor, budget, technology, management)

6 Session 1

How to Describe a Process?

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Inputs and outputs

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Flow unit

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Resources and activities

7

Session 1

The Process Flow Diagram

What (interesting) questions can we ask about a process?

 Inventory  Flow time...