Frito lay operations management in manufacturing

Operations and Productivity 1 PowerPoint presentation to accompany Heizer, Render, Munson Operations Management, Twelfth Edition Principles of Operations Management, Tenth Edition PowerPoint slides by Jeff Heyl Copyright © 2017 Pearson Education, Inc. 1-1 Outline ▶ Global Company Profile: Hard Rock Cafe ▶ What Is Operations Management? ▶ Organizing to Produce Goods and Services ▶ The Supply Chain ▶ Why Study OM? ▶ What Operations Managers Do Copyright © 2017 Pearson Education, Inc. 1-2 Outline - Continued ▶ ▶ ▶ ▶ The Heritage of Operations Management Operations for Goods and Services The Productivity Challenge Current Challenges in Operations Management ▶ Ethics, Social Responsibility, and Sustainability Copyright © 2017 Pearson Education, Inc. 1-3 Operations Management at Hard Rock Cafe ▶ First opened in 1971 ▶ Now – 150 restaurants in over 53 countries ▶ Rock music memorabilia ▶ Creates value in the form of good food and entertainment ▶ 3,500+ custom meals per day in Orlando ▶ How does an item get on the menu? ▶ Role of the Operations Manager Copyright © 2017 Pearson Education, Inc. 1-4 Learning Objectives When you complete this chapter you should be able to: 1.1 Define operations management 1.2 Explain the distinction between goods and services 1.3 Explain the difference between production and productivity Copyright © 2017 Pearson Education, Inc. 1-5 Learning Objectives When you complete this chapter you should be able to: 1.4 Compute single-factor productivity 1.5 Compute multifactor productivity 1.6 Identify the critical variables in enhancing productivity Copyright © 2017 Pearson Education, Inc. 1-6 What Is Operations Management? Production is the creation of goods and services Operations management (OM) is the set of activities that create value in the form of goods and services by transforming inputs into outputs Copyright © 2017 Pearson Education, Inc. 1-7 Organizing to Produce Goods and Services ▶ Essential functions: 1. Marketing – generates demand 2. Production/operations – creates the product 3. Finance/accounting – tracks how well the organization is doing, pays bills, collects the money Copyright © 2017 Pearson Education, Inc. 1-8 Organizational Charts Figure 1.1 Copyright © 2017 Pearson Education, Inc. 1-9 Organizational Charts Figure 1.1 Copyright © 2017 Pearson Education, Inc. 1 - 10 Organizational Charts Figure 1.1 Copyright © 2017 Pearson Education, Inc. 1 - 11 The Supply Chain ▶ A global network of organizations and activities that supply a firm with goods and services ▶ Members of the supply chain collaborate to achieve high levels of customer satisfaction, efficiency and competitive advantage Figure 1.2 Farmer Syrup producer Copyright © 2017 Pearson Education, Inc. Bottler Distributor Retailer 1 - 12 Why Study OM? 1. OM is one of three major functions of any organization; we want to study how people organize themselves for productive enterprise 2. We want (and need) to know how goods and services are produced 3. We want to understand what operations managers do 4.