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Ten Decision Areas Design of goods and services Managing quality Process and capacity design Location strategy Layout strategy Human resources and job design Supply chain management Inventory management Scheduling Maintenance Chapter(s) 5 6, Supplement 6 7, Supplement 7 8 9 10, Supplement 10 11, Supplement 11 12, 14, 16 13, 15 17
Instructor: Usman Ali Asif Chapter 1 1
Table 1.2
Managing quality
How do we define quality? Who is responsible for quality?
Product Heavy R&D investment; Selection and extensive labs; focus on Design development in a broad range of drug categories Quality Major priority, exceed regulatory requirements
Location strategy
Where should we put the facility? On what criteria should we base the location decision?
Instructor: Usman Ali Asif Chapter 1 4
Location
Layout strategy
How should we arrange the facility? How large must the facility be to meet our plan?
Instructor: Usman Ali Asif Chapter 1 6
Layout
Table 2.2
Instructor: Usman Ali Asif Chapter 1 7
Supply Chain
Table 2.2
Instructor: Usman Ali Asif Chapter 1 9
Maintenance
Who is responsible for maintenance? When do we do maintenance?
Instructor: Usman Ali Asif Chapter 1 10
Maintenance
Table 2.2
Instructor: Usman Ali Asif Chapter 1 11
Productivity
Units produced Productivity = Input used
Productivity Calculations
Labor Productivity
Productivity = Units produced Labor-hours used 1,000 250 = 4 units/labor-hour
Multi-Factor Productivity
Output Productivity = Labor + Material + Energy + Capital + Miscellaneous
Also known as total factor productivity Output and inputs are often expressed in dollars
Multiple resource inputs multi-factor productivity
Instructor: Usman Ali Asif Chapter 1 15
8 titles/day Old labor = productivity 32 labor-hrs = .25 titles/labor-hr 14 titles/day New labor = productivity 32 labor-hrs
Instructor: Usman Ali Asif Chapter 1 18
8 titles/day Old labor = productivity 32 labor-hrs = .25 titles/labor-hr 14 titles/day New labor = = .4375 titles/labor-hr productivity 32 labor-hrs
Instructor: Usman Ali Asif Chapter 1 19
8 titles/day Old multifactor = = .0077 titles/dollar productivity $640 + 400 14 titles/day New multifactor = productivity $640 + 800
Instructor: Usman Ali Asif Chapter 1 22
8 titles/day Old multifactor = = .0077 titles/dollar productivity $640 + 400 14 titles/day New multifactor = = .0097 titles/dollar productivity $640 + 800
Instructor: Usman Ali Asif Chapter 1 23