Operations management
R. Dan Reid and Nada R. Sanders
seventh editi on
summary writt en by Peerke Linnartz, student van Hall Larenstein
1. Introduction to operations management
2. Operations strategy and competitiveness
3. Product and Process Design
4. Global Supply Chain Management,
5. Managing Quality
6. Statistical quality control
7. Just in time and lean systems
8. Forecasting
9. Capacity planning and Facility location
10. Facility layout
11. Work system design
Pagina | 1
,Table of content
Chapter 1 Introduction to quality management.....................................................................................3
Chapter 2 Operations strategy and competitiveness..............................................................................4
Chapter 3 Product design and process selection....................................................................................5
Chapter 4 Supply Chain management....................................................................................................8
Chapter 5 Total Quality management..................................................................................................11
Chapter 6 Statistical quality control......................................................................................................12
Chapter 7 Just in time and lean systems...............................................................................................15
Chapter 8 forecasting...........................................................................................................................17
Chapter 9 Capacity planning and facility location.................................................................................20
Chapter 10 facility layout......................................................................................................................22
Chapter 11 Work system design...........................................................................................................25
Pagina | 2
,Chapter 1 Introduction to quality management
Operations management is the business function responsible for planning, coordinating and
controlling the resources needed to produce company goods and services.
The role of operations management is to transform organizational inputs into outputs.
Strategic decisions have long-term and broad scope.
Tactical decisions have narrow scope short term in general and concerning a small group of issues.
The global marketplace is a trend in business focussing on customers, suppliers, and competitors
from a global perspective.
A lean system is a concept that takes a total system approach to create efficient operations.
Enterprise Resource Planning ERP is a large sophisticated software system used for identifying and
planning the enterprise-wide resources needed to coordinate all activities involved in producing and
delivering products and services.
Customer relationship management CRM is a software solution that enables the firm to collect
customer-specific data.
Cross-functional decision-making is the coordinated interaction and decision-making that occur
among the different functions of the organization.
Pagina | 3
, Chapter 2 Operations strategy and competitiveness
An operations strategy is a long-range plan for the operations function that specifies the design and
use of resources to support the business strategy. It defines a plan to make optimal use of resources
within the organization.
Operations strategy specifies the design and use of resources within a business strategy.
A business strategy includes the location, size, type of facilities available and worker skills required.
Also, the use of technology, special processes needed, special equipment and quality control
methods.
A trade-off is a segmentation.
Order qualifiers are those competitive priorities that a company has to meet if it wants to do
business in a particular market.
Order winners are the competitive priorities that help a company to win orders in a market.
The structure is operations decisions related to the design of the production process such as
facilities, technology, and flow of goods and services through the facility.
Infrastructure is the operation decisions related to the planning and control systems of the
operation, such as organization of the operations function, skills and pay of workers and quality
control approaches.
productivity is a measure of how efficiently an organization converts inputs into outputs.
Productivity is output/ input
Total productivity is productivity computed as a ratio of output to all organizational inputs.
Partial productivity is productivity computed as a ratio of output to only one input.
Multifactor productivity is productivity computed as a ratio of output to several, but not all, inputs.
Pagina | 4
R. Dan Reid and Nada R. Sanders
seventh editi on
summary writt en by Peerke Linnartz, student van Hall Larenstein
1. Introduction to operations management
2. Operations strategy and competitiveness
3. Product and Process Design
4. Global Supply Chain Management,
5. Managing Quality
6. Statistical quality control
7. Just in time and lean systems
8. Forecasting
9. Capacity planning and Facility location
10. Facility layout
11. Work system design
Pagina | 1
,Table of content
Chapter 1 Introduction to quality management.....................................................................................3
Chapter 2 Operations strategy and competitiveness..............................................................................4
Chapter 3 Product design and process selection....................................................................................5
Chapter 4 Supply Chain management....................................................................................................8
Chapter 5 Total Quality management..................................................................................................11
Chapter 6 Statistical quality control......................................................................................................12
Chapter 7 Just in time and lean systems...............................................................................................15
Chapter 8 forecasting...........................................................................................................................17
Chapter 9 Capacity planning and facility location.................................................................................20
Chapter 10 facility layout......................................................................................................................22
Chapter 11 Work system design...........................................................................................................25
Pagina | 2
,Chapter 1 Introduction to quality management
Operations management is the business function responsible for planning, coordinating and
controlling the resources needed to produce company goods and services.
The role of operations management is to transform organizational inputs into outputs.
Strategic decisions have long-term and broad scope.
Tactical decisions have narrow scope short term in general and concerning a small group of issues.
The global marketplace is a trend in business focussing on customers, suppliers, and competitors
from a global perspective.
A lean system is a concept that takes a total system approach to create efficient operations.
Enterprise Resource Planning ERP is a large sophisticated software system used for identifying and
planning the enterprise-wide resources needed to coordinate all activities involved in producing and
delivering products and services.
Customer relationship management CRM is a software solution that enables the firm to collect
customer-specific data.
Cross-functional decision-making is the coordinated interaction and decision-making that occur
among the different functions of the organization.
Pagina | 3
, Chapter 2 Operations strategy and competitiveness
An operations strategy is a long-range plan for the operations function that specifies the design and
use of resources to support the business strategy. It defines a plan to make optimal use of resources
within the organization.
Operations strategy specifies the design and use of resources within a business strategy.
A business strategy includes the location, size, type of facilities available and worker skills required.
Also, the use of technology, special processes needed, special equipment and quality control
methods.
A trade-off is a segmentation.
Order qualifiers are those competitive priorities that a company has to meet if it wants to do
business in a particular market.
Order winners are the competitive priorities that help a company to win orders in a market.
The structure is operations decisions related to the design of the production process such as
facilities, technology, and flow of goods and services through the facility.
Infrastructure is the operation decisions related to the planning and control systems of the
operation, such as organization of the operations function, skills and pay of workers and quality
control approaches.
productivity is a measure of how efficiently an organization converts inputs into outputs.
Productivity is output/ input
Total productivity is productivity computed as a ratio of output to all organizational inputs.
Partial productivity is productivity computed as a ratio of output to only one input.
Multifactor productivity is productivity computed as a ratio of output to several, but not all, inputs.
Pagina | 4
