TENDNCIAS EM GESTO DE OPERAES

Recent Trends in Operations

- What has been happening that affects the way products and services are produced? - How has the food you eat changed from the food you ate five years ago? - What about your clothes? - Financial/insurance services? - The things you buy and the way you buy them? I. Market Focus - Awareness that market controls production - Old view a market exists to get rid of products produced
products are commodities

- New view
products are produced to meet market needs products should be differentiated and targeted at distinct niches to

capture maximum value from products II. Globalization Reduction in trade barriers Globalization of major companies Global sourcing Improved transportation capabilities Increased interest in products from around the world - new opportunities for variety Changing business models example Retailers Are Becoming Global For Many the Scope is Increasing Companies are expanding in both directions Vertically to control supply chains and also horizontally to extend business capabilities or the ability to meet customer needs Convergence Blurring of traditional lines distinguishing businesses Retail in particular is branching out May mean that competition will come from unexpected sources III. Japanese Production System - Many aspects introduced by the U.S. after the war

- Three Principles: 1. Quality comes first. 2. Continual Improvement of product and process. 3. Elimination of waste. - Just-In-Time IV. Quality Management Systems

Importance of quality management has finally been recognized Internal versus external quality systems

Total Quality Management ISO 9000/QS 9000 HACCP ISO 14000 Government regulations

V. Business Process Analysis, Improvement or Reengineering

Hammer and Champy Business processes can be optimized by ignoring the way things were done in the past Focus on what has to be done Often used to disguise downsizing

VI. Supply Chain Management

The importance of considering entire supply chains rather than single firms Closer relationships with suppliers Coordination and decision making spread through the chain

Electronic Data Exchange - EDI Efficient Consumer Response - ECR

VII. Service Operations Management rise in service employment since 1960's. service jobs outnumber manufacturing jobs. measuring performance is much more difficult productivity increases much more difficult to achieve.

By 2005 only 20% of the population will be involved in industrial production

Example - Service Operations at IBM Does everything from Web design and e-commerce to installing networks Manage AT&Ts IT dept. 37% of total revenue - $ 32.3 B for 1999 45% of profits - $3.5B IBM generates $4 in revenue for every $1 in hardware sold VIII. Environmental and Social Consumer awareness social issues impact on global organizations Cultural differences Environmental concern Government regulation ISO 14000 Ethical Production - Outsourcing production to 3rd world plants - Wal-Mart/Kathie Lee Gifford case

Products like purses produced in sweatshops

- Minimizing the environmental impact of products EU has regulations that force product design to include consideration of the ultimate disposal of the product. IX. New Technologies Robotics Computer controlled manufacturing Biotechnology Global positioning systems The New Information Age The power of information, communication and analysis technologies are transforming

The way we work The way companies interact The values in the economy
Impact of Information Technologies on Productivity Productivity Outputs/Inputs

 Output per worker ($ or units) Output per machine

Measures how efficient a process is by what resources are needed to produce the output. Annual Rate of Increase in Productivity (U.S.) 1975 1995 1.4% 1995 1999 2.5% Impact of Information Technologies on Productivity During the late 1990s

Source: Business Week, Nov. 5, 2001

Ideas The Currency of the Future The true value in corporations in the future will be knowledge At one point in the technology bubble Yahoo was worth as much as the entire US steel industry. U.S. Patents in 1999 170,000 The Web is revolutionizing the way we do business, seek knowledge and entertain ourselves

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Recent Trends inProduction/Operations management

1.Global

M a r k e t P l a c e 2.

Production/Operations Strategy3. Total Quality Management (TQM)4. Flexibility5. Time Reduction6. Technology7. Worker Involvement8. Reengineering9. Environmental Issues10. Corporate Downsizing (or Right Sizing)11. Supply-Chain Management12. Lean Production