Transcript Introduction to Operations

Milestone Developments in Operations Management
• 1865-1900 Industrial Revolution, Growth of Railroads,
• 1875-1925 Scientific Management Movement
• 1925-1960 Human Relations Movement
• 1940+ Operations Research
• 1955+ Computers
Characteristics of Operations Research
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OR approaches decision-making from a total systems perspective
OR is interdisciplinary … uses diverse techniques to solve problems
OR constructs models of the system to conduct experiments
Model building and mathematical manipulation have been key to OR
The primary focus is on decision making
Computers are used extensively
Operations research helps operations managers make decisions when
problems are complex and when the cost of a wrong decision is high
OR seeks to replace intuitive decision making for large complex
problems with an approach that identifies the optimal, or best
alternative through analysis.
Use of Computers in OM
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Clerical Duties (payroll, billing, inventory, cost reports)
Analysis of Operations (scheduling, project planning and control, LP)
Manufacturing Planning and Control (forecasting, MRP, shop floor controls
Computer-Integrated Manufacturing (robotics, bar coding, CAD/CAM, etc)
Computer-Aided Design (CAD)
Computer-Aided Manufacturing (CAM)
Flexible Manufacturing Systems (FMS)
Automated Storage and Retrieval Systems (ASRS)
Productive Systems and Systems Theory
Russell Ackoff
SYSTEM -- An organized complex of interdependent components or subsystems
designed to achieve objectives. When one subsystem is acted upon (by force), all the other
parts of the system are affected to varying degrees.
CLOSED SYSTEM -- A
system that doesn’t interact with the external environment.
Since internal operations are assumed independent of outside forces, operations can ignore
the external environment.
OPEN SYSTEM --
A system that has continuous action and reaction with its external
environment. The system receives inputs from the external environment, converts the inputs
in some way, and exports the outputs back to the external environment by sensing changes in
their inputs or the demand for their outputs.
SUBOPTIMALITY --
When optimization of one component or subsystem results in
less than optimal performance in the larger system
OM TOPICS WE WILL COVER
• Decision Making in OM: the process and methods
• Forecasting in OM: the starting point for all planning
– Moving averages, smoothing, regression
• Product service design & process planning
• Allocating scarce resources to strategic alternatives
– Linear programming, transportation, assignment
• Long-range capacity planning and facility location
• Facility Layout: Manufacturing and Services
Queuing, simulation
• Product Planning Systems: aggregate and master production scheduling
• Inventory, Materials Management & Resource Report Planning
– EOQ models, safety stock, MRP
• Scheduling and Shop Floor Planning
– Line balancing
• Materials Management & Purchasing
• Quality Control
• Maintenance Management and Reliability
STATISTICS REVIEW
MEASURES OF LOCATION
Mean
Median
Mode
Percentile
MEASURES OF DISPERSION
Range
Variance
Standard Deviation
PARAMETERS vs STATISTICS
POPULATION
MEAN
VARIANCE
STANDARD
DEVIATION
NUMBER
SAMPLE