Heizer Om10 Ch01

1

Operations and
Productivity

PowerPoint presentation to accompany
Heizer and Render
Operations Management, 10e
Principles of Operations Management, 8e
PowerPoint slides by Jeff Heyl

© 2011 Pearson

1-1

Outline
 Global Company Profile: Hard Rock
Cafe
 What Is Operations Management?
 Organizing to Produce Goods and
Services
 Why Study OM?
 What Operations Managers Do
© 2011 Pearson

1-2

Outline - Continued
 The Heritage of Operations
Management
 Operations in the Service Sector
 Differences between Goods and
Services
 Growth of Services
 Service Pay

 Exciting New Trends in Operations
Management
© 2011 Pearson

1-3

Outline - Continued
 The Productivity Challenge
 Productivity Measurement
 Productivity Variables
 Productivity and the Service Sector

 Ethics and Social Responsibility

© 2011 Pearson

1-4

Learning Objectives
When you complete this chapter you should be able to:
1. Define operations management
2. Explain the distinction between goods and services
3. Explain the difference between production and productivity
© 2011 Pearson

1-5

Learning Objectives
When you complete this chapter you should be able to:
4. Compute single-factor productivity 5. Compute multifactor productivity
6. Identify the critical variables in enhancing productivity
© 2011 Pearson

1-6

The Hard Rock Cafe
 First opened in 1971
 Now – 129 restaurants in over 40 countries

 Rock music memorabilia
 Creates value in the form of good food and entertainment
 3,500+ custom meals per day in Orlando
 How does an item get on the menu?
 Role of the Operations Manager
© 2011 Pearson

1-7

What Is Operations
Management?
Production is the creation of goods and services
Operations management (OM) is the set of activities that create value in the form of goods and services by transforming inputs into outputs © 2011 Pearson

1-8

Organizing to Produce
Goods and Services
 Essential functions:
1. Marketing – generates demand
2. Production/operations – creates
the