Master EMBA

Production Management

F.LE DUIGOU

Summary

� CH 1 – About operation management� CH 2 – Production design� CH 3 – Quality management

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� CH 3 – Quality management� CH 4 – Process design� CH 5 – Outsourcing as a strategy

CH 1 – About operation management

� 1/ What is operation management ?� Office, Hospital, Factory, restaurant, department store…

� Goods and services are concerned

� Production : creation of goods and services

� Operation management : the set of activities that create

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� Operation management : the set of activities that create

value by transforming inputs into outputs.

� 2/ Organizing to produce goods and services

� Three functions :

� Marketing,

� Production/Operations,

� Finance/Accounting

CH 1 – About operation management

� 3/ Why study operation management ?� One of the major functions,

� How goods and services are produced,

� Understand what operation managers do,

� It’s a costly part of the organization.

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� It’s a costly part of the organization.

� 4/ The heritage

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Significant events in OMSignificant events in OM

CH 1 – About operation management

� Taylor� Matching employees to the right job,

� Providing the proper training,

� Providing the proper work methods and tools,

� Legitimate incentives for work to be accomplished.

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� Legitimate incentives for work to be accomplished.

� Ford

� Accepted Taylor’s ideas

� Added the concept of assembly line (Men stood still and

material moved).

CH 1 – About operation management

� 5/ Operation in the service sector� 5.1/ Let’s see the most differences :

� Service = intangible

� Produced and consumed simultaneously

� Often unique

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� Often unique

� High consumer interaction

� Inconsistent product definition

� Frequently dispersed

In reality � it’s often a mix, even for service

� 5.2/ Growth of services

Development of the service economy

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CH 2 – Production design

� 1/ Competitive advantage� Differentiation (apple),

� Low cost (Ryan air),

� Rapid response (Toyota),

� Combination of the three items.

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� Combination of the three items.

� 2/ Product life circles

� Four steps (or phases):

CH 2 – Production design

� 3/ Product life circles and strategy� Introduction

� Growth

� Maturity

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� Maturity

� Decline

� 4/ Generating new products

� Opportunities

� Importance of new products

CH 2 – Production design

5/ Product development

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CH 2 – Production design

� 6/ Issue for product design

� Robust design

� Modular design

Computer-aided design

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� Computer-aided design

� Computer-aided manufacturing

� Virtual reality technology

� Value analysis

CH 2 – Production design

� 7/ Ethics and sustainability

� Sustainability

� Goals

Guidelines :

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� Guidelines :

� Make product recyclable

� Use recyclable materials

� Use less harmful ingredients

� Use less energy

� Use less materials

CH 2 – Production design

� Example (sustainability in adds)

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CH 3 – Quality management

� 1/ Defining Quality� Quality = the ability of a product to meet customer needs.

� Quality management = conforming to standards.

2/ Implications of quality

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� 2/ Implications of quality

� Company reputation

� Product liability

� Global implications

CH 3 – Quality management

� 3/ Cost of quality

� Prevention costs

� Appraisal costs

� Internal failure

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� Internal failure

� External costs

� 4/ ISO

� 9000 (Quality management procedures)

� 14000 (series of environmental management standards)

CH 3 – Quality management

� 5/ Total quality management

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CH 3 – Quality management

� 5/ Total quality management

Continuous

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Continuous

improvement

CH 3 – Quality management

� 5/ Total quality management

� Employees empowerment

� Benchmarking

� Just in time� Just in time

� ….

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CH 3 – Quality management

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CH 3 – Quality management

� 6/ Conclusion : Determinants of Quality

Management� Reliability

� Responsiveness

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� Responsiveness

� Competence

� Access

� Courtesy

� Communication

� Credibility

� Security

� Understanding the customerSource : Journal of Marketing

CH 4 – Process Design

� 1/ Process Strategy Management

� Process Focus

� Repetitive Focus

Product Focus

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� Product Focus

� Mass customization Focus

� 2/ Considerations for service process design

CH 5 – Outsourcing

� 1/ What is outsourcing

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� 2/ Strategic planning

� Theory of comparative advantages

� Risks of outsourcing

CH 5 – Outsourcing

� 3/ Advantages and disadvantages of outsourcing

� Advantages

� Cost saving

� Outside expertise

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Outside expertise

� Improving operations

� Focusing on core competencies

� Gaining outside technology

� Disadvantages

� Increased transportation costs

� Loss of control

� Creating future competition

� Negative impact on employees

� Longer term impact