OPERATIONEEL MANAGEMENT
HBH70E
0. Inleiding
1. Introduction operational management
2. Inventory management
3. Material requirements planning
4. Detailed production planning at finite capacity
5. Cycle time as performance measure and key concept in planning
6. Lean operations
1
,2
,CHAPTER 0: INTRODUCTION
WHY
• Business education is incomplete without understanding modern approaches to managing
operations
• Strategic importance: maintain competitive advantage through operations (e.g. Dell, Nike, Ikea,
Toyota)
• Operational importance: how do we get the products to the right place at the right time at
minimal cost?
o Globalization & complex supply chains
o Supply chain disruptions
• High demand for training in OM / supply chain management
o Topics of PICS courses = topic of this course
• OM presents interesting career opportunities
• Also relevant in other contexts
3
,AIMS
Upon completion of this part, the student is able to:
• Have an overview of the components constituting the domain of operations management (part 1)
• Understand and apply the fundamentals of inventory management (part 2)
• Understand and apply planning systems of material and capacity (parts 3 and 4)
• Understand and apply the laws of cycle time reduction (part 5)
• Understand and apply the principles of lean operations (part 6)
4
,CHAPTER 1: INTRODUCTION OPERATIONAL MANAGEMENT
CONTENT
1. What is operations management
2. Operations management responsibilities
3. Operations management levels
4. Operations management competitive dimensions 5. Operations management components
6. Operations management history
7. This course
doel: globaal overzicht hebben van alle topics, deel 2,3,4,5,6 belangrijkste
1. WHAT IS OPERATIONS MANAGEMENT
OPERATIONS AND MANAGING
• Managing operations
o Operations transform inputs in outputs
▪ Inputs: capital, materials, human resources (skills and knowledge), technology,
equipment and facilities,... alles dat je nodig hebt.
▪ Outputs: products (physical output of a process) or services (intangible output
of a process) afgewerkte producten of diensten.
o Managing is the process of “decision making” for all factors influencing operations
(responsibilities) verantwoordelijkheden (5 in totaal)
▪ Design, planning, implementation and control, improvement, protection
Managen van operaties, processen.
Productie omgeving: autofabriek
Diensten omgeving: universiteit
5
,IN VIEW OF AN ORGANIZATION’S OBJECTIVE
Creation and distribution of goods and services at the right place, at the right time, in the right quantity
Ervoor gaat zorgen dat je de juiste goederen en diensten gaat creëren op de juiste plek, tijd, hoeveelheid.
6
,2. OPERATIONS MANAGEMENT RESPONSIBILITIES
• Design
• Planning
• Implementation and control
• Improvement
• Protection
DESIGN
• Product design, multifunctioneel team, nieuw of bestaand product, verbeteren, ontwerpen
• Production layout design
• Process technology
• Job design
• Location theory, required capacity (strategisch niveau), bottlenecks (deel 4)
PLANNING
Production operating systems (planning systems) (product/service and process, inplannen in de tijd)
• Aggregate vs detailed
• Material-oriented (Material Requirements/Resource Planning (MRP), Enterprise Resource
Planning (ERP), Just-in-Time (JIT),...) vs. capacity-oriented (Theory- of-Constraints (TOC), Load
Oriented Planning (LOP),...)
• Scheduling & sequencing (short term) processstappen inplannen in de tijd, volgorde
• Project planning (Critical Path Method (CPM), resource allocation,...), eentijdige activiteiten
• …
Supply chain
• Purchasing policy and production planning and distribution planning
• Central vs. decentral decision making
• Bullwhip
7
,IMPLEMENTATION AND CONTROL
Quality control and Total Quality Management (TQM)
▪ Non-cost of quality vs cost of non-quality
▪ Quality circles, Ishikawa, Kaizen,...
Maintenance
▪ Preventive vs. corrective onderhoud
Information handling
▪ Communication networks, Management Information System (MIS), business analytics,...
Performance evaluation (financial or operational) hoe het systeem presteert
▪ First pass yield, cycle time, due date performance,...
Cost calculation
▪ Activity Based Costing (ABC), time-driven ABC,...
IMPROVEMENT
▪ Control reveals opportunities for improvement
▪ Continuous improvement, we willen continue verbetering
▪ ...
PROTECTION
Why
▪ Uncertainty, variability, failures,...
How
▪ Inventory: voldoende voorraad
o Types: disconnected inventory, pipeline inventory, safety inventory, anticipation
inventory, inventory due to batching, inventory due to capacity limitations,... (gaan we
niet verder op in)
o Level: raw material, WIP (work-in-process), standard modules, end items,...
• Safety time: jezelf voldoende tijd geven om af te geven aan de klant.
• Additional capacity
8
,3. OPERATIONS MANAGEMENT LEVELS
▪ Research-based
▪ Hierarchy-based
Twee niveaus waarop we kunnen werken.
RESEARCH-BASED
Management/strategic
▪ What? Why?
▪ Effectivity
Technical/analytical
▪ What? How?
▪ Efficiency
Tools for decision making
▪ Qualitative soft Operations Research and Management Science (OR/MS) = domein die
een heel aantal technieken bevat die kunnen gebruikt worden om het process van
beslissingen nemen te ondersteunen.
▪ Quantitative hard OR/MS
SOFT OR/MS
▪ Survey
▪ Case study
▪ Action research
▪ ...
Technieken
HARD OR/MS
▪ Optimisation (linear, integer, non-linear)
▪ Network models
▪ Decision making (under uncertainty, with multiple objectives)
▪ Game theory
▪ Inventory models (deterministic, probabilistic)
▪ Markov chains
▪ Dynamic programming (deterministic, probabilistic)
▪ Queueing theory
▪ Simulation
▪ Forecasting models
▪ ...
Wij specifiek inzoemen op voorraadmodellen en wachtlijn theorie.
9
, HIERARCHY-BASED
• Strategic (long-term) genereren beperkingen voor tactische niveau
o How to make the product?
o Where to locate facilities?
o ...
• Tactical (intermediate-term) genereren beperkingen voor het operationele niveau
o How many workers?
o How much finished good (end item) inventory?
o ...
• Operational (short-term)
o Which jobs to work on today?
o What is the priority of jobs?
o …
10
HBH70E
0. Inleiding
1. Introduction operational management
2. Inventory management
3. Material requirements planning
4. Detailed production planning at finite capacity
5. Cycle time as performance measure and key concept in planning
6. Lean operations
1
,2
,CHAPTER 0: INTRODUCTION
WHY
• Business education is incomplete without understanding modern approaches to managing
operations
• Strategic importance: maintain competitive advantage through operations (e.g. Dell, Nike, Ikea,
Toyota)
• Operational importance: how do we get the products to the right place at the right time at
minimal cost?
o Globalization & complex supply chains
o Supply chain disruptions
• High demand for training in OM / supply chain management
o Topics of PICS courses = topic of this course
• OM presents interesting career opportunities
• Also relevant in other contexts
3
,AIMS
Upon completion of this part, the student is able to:
• Have an overview of the components constituting the domain of operations management (part 1)
• Understand and apply the fundamentals of inventory management (part 2)
• Understand and apply planning systems of material and capacity (parts 3 and 4)
• Understand and apply the laws of cycle time reduction (part 5)
• Understand and apply the principles of lean operations (part 6)
4
,CHAPTER 1: INTRODUCTION OPERATIONAL MANAGEMENT
CONTENT
1. What is operations management
2. Operations management responsibilities
3. Operations management levels
4. Operations management competitive dimensions 5. Operations management components
6. Operations management history
7. This course
doel: globaal overzicht hebben van alle topics, deel 2,3,4,5,6 belangrijkste
1. WHAT IS OPERATIONS MANAGEMENT
OPERATIONS AND MANAGING
• Managing operations
o Operations transform inputs in outputs
▪ Inputs: capital, materials, human resources (skills and knowledge), technology,
equipment and facilities,... alles dat je nodig hebt.
▪ Outputs: products (physical output of a process) or services (intangible output
of a process) afgewerkte producten of diensten.
o Managing is the process of “decision making” for all factors influencing operations
(responsibilities) verantwoordelijkheden (5 in totaal)
▪ Design, planning, implementation and control, improvement, protection
Managen van operaties, processen.
Productie omgeving: autofabriek
Diensten omgeving: universiteit
5
,IN VIEW OF AN ORGANIZATION’S OBJECTIVE
Creation and distribution of goods and services at the right place, at the right time, in the right quantity
Ervoor gaat zorgen dat je de juiste goederen en diensten gaat creëren op de juiste plek, tijd, hoeveelheid.
6
,2. OPERATIONS MANAGEMENT RESPONSIBILITIES
• Design
• Planning
• Implementation and control
• Improvement
• Protection
DESIGN
• Product design, multifunctioneel team, nieuw of bestaand product, verbeteren, ontwerpen
• Production layout design
• Process technology
• Job design
• Location theory, required capacity (strategisch niveau), bottlenecks (deel 4)
PLANNING
Production operating systems (planning systems) (product/service and process, inplannen in de tijd)
• Aggregate vs detailed
• Material-oriented (Material Requirements/Resource Planning (MRP), Enterprise Resource
Planning (ERP), Just-in-Time (JIT),...) vs. capacity-oriented (Theory- of-Constraints (TOC), Load
Oriented Planning (LOP),...)
• Scheduling & sequencing (short term) processstappen inplannen in de tijd, volgorde
• Project planning (Critical Path Method (CPM), resource allocation,...), eentijdige activiteiten
• …
Supply chain
• Purchasing policy and production planning and distribution planning
• Central vs. decentral decision making
• Bullwhip
7
,IMPLEMENTATION AND CONTROL
Quality control and Total Quality Management (TQM)
▪ Non-cost of quality vs cost of non-quality
▪ Quality circles, Ishikawa, Kaizen,...
Maintenance
▪ Preventive vs. corrective onderhoud
Information handling
▪ Communication networks, Management Information System (MIS), business analytics,...
Performance evaluation (financial or operational) hoe het systeem presteert
▪ First pass yield, cycle time, due date performance,...
Cost calculation
▪ Activity Based Costing (ABC), time-driven ABC,...
IMPROVEMENT
▪ Control reveals opportunities for improvement
▪ Continuous improvement, we willen continue verbetering
▪ ...
PROTECTION
Why
▪ Uncertainty, variability, failures,...
How
▪ Inventory: voldoende voorraad
o Types: disconnected inventory, pipeline inventory, safety inventory, anticipation
inventory, inventory due to batching, inventory due to capacity limitations,... (gaan we
niet verder op in)
o Level: raw material, WIP (work-in-process), standard modules, end items,...
• Safety time: jezelf voldoende tijd geven om af te geven aan de klant.
• Additional capacity
8
,3. OPERATIONS MANAGEMENT LEVELS
▪ Research-based
▪ Hierarchy-based
Twee niveaus waarop we kunnen werken.
RESEARCH-BASED
Management/strategic
▪ What? Why?
▪ Effectivity
Technical/analytical
▪ What? How?
▪ Efficiency
Tools for decision making
▪ Qualitative soft Operations Research and Management Science (OR/MS) = domein die
een heel aantal technieken bevat die kunnen gebruikt worden om het process van
beslissingen nemen te ondersteunen.
▪ Quantitative hard OR/MS
SOFT OR/MS
▪ Survey
▪ Case study
▪ Action research
▪ ...
Technieken
HARD OR/MS
▪ Optimisation (linear, integer, non-linear)
▪ Network models
▪ Decision making (under uncertainty, with multiple objectives)
▪ Game theory
▪ Inventory models (deterministic, probabilistic)
▪ Markov chains
▪ Dynamic programming (deterministic, probabilistic)
▪ Queueing theory
▪ Simulation
▪ Forecasting models
▪ ...
Wij specifiek inzoemen op voorraadmodellen en wachtlijn theorie.
9
, HIERARCHY-BASED
• Strategic (long-term) genereren beperkingen voor tactische niveau
o How to make the product?
o Where to locate facilities?
o ...
• Tactical (intermediate-term) genereren beperkingen voor het operationele niveau
o How many workers?
o How much finished good (end item) inventory?
o ...
• Operational (short-term)
o Which jobs to work on today?
o What is the priority of jobs?
o …
10
