Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Chapter 15 Lecture Notes
Operations, Quality, and Productivity
Operations
Slide 3
Exhibit 15-1: How Operations Systems are Classified, Designed and Managed
Slide 4
See figure on page 484.
Classifying Operations Systems
Slide 5
Customer involvement – the amount of input from customers, which determines whether operations
Operations Flexibility
Slide 6
Operations Flexibility
Slide 7
Continuous process operations (CPO) – produce outputs that are not in discrete units.
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
follow the same path.
Batch process operations (BPO) – produce outputs with the same resources.
Resource sand Technology Management
Slide 8
Exhibit 15-2: Classifying Operations Systems
Slide 9
Exhibit 15-3: Throughput Stages
Slide 10
See figure on page 489.
Facility Layout
Slide 11
Exhibit 15-4: Facility Layout
Slide 12
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Managing Operations Systems and the Supply Chain
Slide 14
Routing – the path and sequence of the transformation of a product into an output.
Exhibit 15-6: Gantt Chart (Orders by Week)
Slide 15
See figure on page 494.
Managing Operations Systems and the Supply Chain
Slide 16
Performance Evaluation and Review Technique (PERT) – a network scheduling technique that illustrates
Exhibit 15-7: Pert Network
Slide 17
See figure on page 495.
Inventory Control
Slide 18
Inventory – The stock of materials held for future use
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Exhibit 15-8: Inventory Control Within the Systems Process
Slide 19
See figure on page 497.
Materials Requirement Planning (MRP)
Slide 20
Supply Chain Management
Slide 21
Supply chain management – the process of coordinating all the activities involved in producing a
Quality Control
Slide 22
Quality control – the process of ensuring that all types of inventory meet standards.
Exhibit 15-9: Five Rules of Customer Human Relations
Slide 23
See figure on page 500.
Exhibit 15-10: Statistical Process Control Chart for 16-Ounce Bags of Lay’s Potato
Chips
Slide 24
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Productivity – a performance measure relating outputs to inputs.
Balanced Scorecard (BSC) – a management tool that measures financial, customer service, and internal