【正文】 33 Options for Increasing Contribution M a r k e t i n g O p t i o n F i n a n c e A c c o u n t i n g O p t i o n O M O p t i o n C u r r e n t S a l e s R e v e n u e : + 5 0 % F i n a n c e C o s t s : 50% P r o d u c t i o n C o s t s : 20% S a l e s $ 1 0 0 , 0 0 0 $ 1 5 0 , 0 0 0 $ 1 0 0 , 0 0 0 $ 1 0 0 , 0 0 0 C o s t o f G o o d s S o l d 8 0 , 0 0 0 1 2 0 , 0 0 0 8 0 , 0 0 0 6 4 , 0 0 0 G r o s s M a r g i n 2 0 , 0 0 0 3 0 , 0 0 0 2 0 , 0 0 0 3 6 , 0 0 0 F i n a n c e C o s t s 6 , 0 0 0 6 , 0 0 0 3 , 0 0 0 6 , 0 0 0 N e t M a r g i n 1 4 , 0 0 0 2 4 , 0 0 0 1 7 , 0 0 0 3 0 , 0 0 0 T a x e s 25% 3 , 5 0 0 6 , 0 0 0 4 , 2 5 0 7 , 5 0 0 C o n t r i b u t i o n 1 0 , 5 0 0 1 8 , 0 0 0 1 2 , 7 5 0 2 2 , 5 0 0 134 Ten Critical Decisions ? Service, product design ? Quality management ? Process, capacity design ? Location ? Layout design ? Human resources, job design ? Supplychain management ? Inventory management ? Scheduling ? Maintenance 135 The Critical Decisions ?Quality management ? Who is responsible for quality? ? How do we define quality? ?Service and product design ? What product or service should we offer? ? How should we design these products and services? 136 The Critical Decisions Continued ?Process and capacity design ? What processes will these products require and in what order? ? What equipment and technology is necessary for these processes? ?Location ? Where should we put the facility ? On what criteria should we base this location decision? 137 The Critical Decisions Continued ?Layout design ? How should we arrange the facility? ? How large a facility is required? ?Human resources and job design ? How do we provide a reasonable work environment? ? How much can we expect our employees to produce? 138 The Critical Decisions Continued ?Supply chain management ? Should we make or buy this item? ? Who are our good suppliers and how many should we have? ?Inventory, material requirements planning, ? How much inventory of each item should we have? ? When do we reorder? 139 The Critical Decisions Continued ?Intermediate, short term, and project scheduling ? Is subcontracting production a good idea? ? Are we better off keeping people on the payroll during slowdowns? ?Maintenance ? Who is responsible for maintenance? ? When do we do maintenance? 140 Responsibilities of Operations Management Products services Planning – Capacity – Location – – Make or buy – Layout – Projects – Scheduling Controlling – Inventory – Quality Organizing – Degree of centralization – Subcontracting Staffing – Hiring/laying off – Use of Overtime Directing – Incentive plans – Issuance of work orders – Job assignments 141 Operations Interfaces with a number of supporting functions Public Relations Accounting Industrial Engineering Operations Maintenance Personnel Purchasing Distribution MIS 142 Where are the OM Jobs 143 Where Are the OM Jobs? ?Technology/methods ?Facilities/space utilization ?Strategic issues ?Response time ?People/team development ?Customer service ?Quality ?Cost reduction ?Inventory reduction ?Productivity improvement 144 The Historic Evolution of Operations Management ?Preindustrial revolution Craft production: skilled workers, flexible tools, small quantities and customized goods Traits: production was slow and costly, no economies of scale and thus on stimulant for production expansion. ?Industrial revolution A number of innovations changed the face of production: James Watt’s steam engine (1764), James Hargreaves’ spinning jenny (1770) and Edmund Cartwright’s power loom (1785). 145 The Historic Evolution of Operations Management Continued ?Scientific management Based on observation, measurement, analysis and improvement of work methods, and economic incentives. Until then scientific management turned production from “ the rule of thumb” to the “science of management”. Frederick W. Taylor and many other pioneers contributed a lot in this stage. ?The human relations movement Scientific management ignored the human element which was emphasize by a number of psychologists who introduced a series of theories, among them Theory X, Theory Y, and Theory Z are best known. 146 The Historic Evolution of Operations Management Continued ?Decision model and management science With the development of mathematics and due to the World War Two, many newly invented techniques were applied for the civilian use and warfare purpose. Especially, with the advent of personal puter this trend was greatly improved and a new branch of management emerged: management science which deal with the problem with mathematical method and puter. ?The influence of Japanese manufacturers During 1970s to now, Japanese manufacturers developed or refined management practices which originated from the West and greatly increased the productivity of their operations and the quality of their products and this influence exerts profound impact to their counterparts in the West. 147 The Heritage of Operations Management 148 Significant Events in Operations Management 149 The Heritage of Operations Management Division of labor (Adam Smith 1776 and Charles Babbage 1852) Standardized parts (Whitney 1800) Scientif