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in cre as in gl y f lex ib le pro du cti on pro ce ss es Mass cu sto mi za tio n Jo b sp ec ial iz ati on Ch an gi ng so cio cu ltu ral m ili eu . In cre as in gl y a kn ow led ge an d in fo rma tio n so cie ty. Em po w ere d em pl oy ee s, tea ms , a nd le an pro du cti on Lo w co st fo cu s En vir on me nt al iss ue s, ISO 14 00 0, in cre as in g di sp os al co sts En vir on me nt all y se ns iti ve pro du cti on , G ree n ma nu fac tu rin g, rec yc led ma teri als , rem an uf ac tu rin g 177 Situation That Operations Face Nowadays ?Globalization ?Environmental Issues Green manufacturing ?Timebased petition Time and motion study aiming to shorten processing time Improving flexibility by reducing the setup time Cutting Ramp。 consumed at same time ? Often unique ? High customer interaction ? Inconsistent product definition ? Often knowledgebased ? Frequently dispersed 169。, Motel 6, Hilton Hotels, Walt Disney Paramount Pictures Public Administration ., State of Alabama, Cook County 165 Organizations in Each Sector Manufacturing Sector Example % of all Jobs General General Electric, Ford, . Steel, Intel Construction Bechtel, McDermott Agriculture King Ranch Mining Homestake Mining 166 Organizations in Each Sector Summary Sector % of all Jobs Service % Manufacturing % 167 1850 75 1900 25 50 75 2022 40 50 60 70 1970 75 80 85 90 95 2022 Percent United States Canada France Italy Britain Japan W Germany 1970 2022 Services Industry Farming 250 200 150 100 50 0 80 %70 60 50 40 30 20 10 0 . Employment, % Share Services as a Percent of GDP . Exports of Services In Billions of Dollars Year 2022 data is estimated Development of the Service Economy 168 Characteristics of Goods ? Tangible product ? Consistent product definition ? Production usually separate from consumption ? Can be inventoried ? Low customer interaction 169。 Repair Services Snelling amp。 tF i n an c e , I n s u r an c eW h ol e s al e T r ad eT r an s p or t, P u b l i c U ti l .C on s tr u c ti onF e d e r al G ov e r n m e n tM i n i n g163 Organizations in Each Sector Service Sector Example % of all Jobs Professional services, education, legal, medical New York City PS108, Notre Dame University, San Diego Zoo Trade (retail, wholesale) Walgreen?s, WalMart, Nordstroms Utilities, transportation Pacific Gas amp。 physicist ? Credited with teaching Japan quality control methods in postWW2 ? Used statistics to analyze process ? His methods involve workers in decisions 156 Contributions From ?Human factors ?Industrial engineering ?Management science ?Biological science ?Physical sciences ?Information science 157 Significant Events in OM ?Division of labor (Smith, 1776) ?Standardized parts (Whitney, 1800) ?Scientific management (Taylor, 1881) ?Coordinated assembly line (Ford 1913) ?Gantt charts (Gantt, 1916) ?Motion study (the Gilbreths, 1922) ?Quality control (Shewhart, 1924) 158 Significant Events Continued ?CPM/PERT (Dupont, 1957) ? MRP (Orlicky, 1960) ?CAD ?Flexible manufacturing systems (FMS) ?Manufacturing automation protocol (MAP) ?Computer integrated manufacturing (CIM) Unlike other fields of science, POM witnesses significant changes in every 10 years. 159 Operations in the Service Sector 160 Service Economies Proportion of Employment in the Service Sector 01020304050607080PolandPortugalCzech Rep.HungaryGreeceItalySpainGermanyIrelandAustriaJapanFinlandSwitz.DenmarkFranceSwedenU.K.BelgiumNorwayLux.U.S.A.Neth.C o u n tr yPercent of Total Employment161 Service Is a Major Job Provider in The United State 162 Jobs in the 26%18%16%14%6%6%5%5%3%1%Ed u c ati on , H e al th , e tc .M an u f ac tu r i n gR e tai l T r ad eS tate amp。 1995 Corel Corp. ‘Any color as long as it’s black’ 155 W. Edwards Deming ? Born 1900。 1995 Corel Corp. 154 ? Born 1863。 12 children! ? (Book amp。 Lillian Gilbreth ? Frank (18681924)。 time studies ? Created efficiency principles 169。 1995 Corel Corp. 151 Frederick W. Taylor ? Born 1856。 Deming 1950) Computer (Atanasoff 1938) CPM/PERT (DuPont 1957) 149 The Heritage of Operations Management Continued Material requirements planning (Orlicky 1960) Computer aided design (CAD 1970) Flexible manufacturing system (FMS 1975) Baldrige Quality Awards (1980) Computer integrated manufacturing (1990) Globalization(1992) Inter (1995) 150 Eli Whitney ? Born 1765。 Acco