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X. Work in pairs. Reproduce the dialogue. Make up your own dialogue on the same situation.

-Now, that we’ve decided to revive this project we should engage a product executive to be directly responsible for marketing our new product.

-Do you have any suitable person in mind?

-Yes. I think we should approach (обратиться с предложением) Bob Lynch. He had dealings with us when he worked for the Ministry of Defence and is now looking for a job.

-What makes you think that he is the best one? What about his education, qualifications?

-They are perfect. He graduated from London University seven years ago with the qualification of an electronic engineer and a diploma of honours (диплом с отличием) and joined the Ministry of Defence. I think his experience in negotiating contracts for the Ministry will be very valuable here.

-Why did he leave the Ministry?

-There seemed to be little chance of his ever rising to a higher position. He had worked for them for five years and hadn’t been promoted.

-Where does he work at present?

-For Liverpool Motors, an electronic equipment company. They offered him a job at a high salary with good prospects for promotion…

-And…?

-And after he had signed the contract of employment he found himself stuck (застрял) behind a desk all day doing boring routine paperwork.

-Isn’t he too adventurous (предприимчивый)?

-He is. And it’s just what is necessary to be a good product executive.

-What about his references?

-You won’t believe but the best one is from the Ministry of Defence. They say that he is the first class material for a post such as technical salesman or product executive.

XI. Write a letter of application to a British company and exchange letters with your partner. Would you hire this applicant? Give your arguments. Use the following expressions for your choice: I am writing to apply for…; …was advertised…; I am a graduate of…; it has always been my intention to work…; … suits my interests…; I have previous experience with…; While at school I was…; I believe that I have…; I am sure…; moreover…; I have enclosed my C.V.; I would be pleased…; I look forward to hearing from you.

XII. Game: He who is the last to say a word (word combination, sentence) concerning the topic “Management” is a winner.

XIII. Write down a composition “What Is Management and What Is a Manager?” (not less than 250 words). Try to do it for about 45 minutes.

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PART II

OPERATIONS MANAGEMENT

Text 12

I. Listen to a native speaker and try to memorize the pronunciation of the words. Try to imitate the pronunciation.

production [prə´dʌkʃn]

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II. Read the title of the text. What do you associate with “Operations Management”? Read the information below, add something to your answer and make up a glossary of the words concerning this area of management.

OPERATIONS MANAGEMENT

Operations management is the management of the productive processes that convert inputs into goods and services. The concept applies to both manufacturing and service industries, even though their characteristics differ to some degree. Major aspects of operations management include operations strategy, operating systems, facilities, and process technology.

Productivity is an efficiency concept that gauges the ratio of outputs relative to inputs into a productive process. Although the United States continues to be the most productive country in the world, productivity increases lagged during the late seventies. Productivity increases in the manufacturing sector have been picking up in the 1980s, but productivity growth in the service sector continues to lag. Improving productivity involves five major steps: determine a base, establish a desired productivity level, review methods for increasing productivity, select a method and implement, and measure results and modify as necessary.

Operations management plays different roles in determining strategy, depending on the strategic role stage into which an organization falls: stage 1, minimize negative potential; stage 2, achieve parity with competition; stage 3, support overall organizational strategy; and stage 4, pursue operations management-based strategy. Within stages 3 and 4, two of the most commonly used operations strategies are low-cost producer and innovative producer.

A number of systems are particularly important for effective operations management. Forecasting helps predict the demand for goods and services. Capacity planning is the process of determining the people, machines, and major physical resources, such as buildings, that will be necessary to meet the production objectives of the organization. Capacity planning involves three different time horizons: long, medium, and short. Aggregate production planning helps match supply with product or service demand over a time

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horizon of about 1 year. The master production schedule translates the aggregate plan into a formalized production plan encompassing specific products to be produced and specific capacity requirements over a designated period. Materials requirements planning is a computer-based inventory system that develops materials requirements for the goods and services specified in the master schedule and initiates the procurement actions necessary to acquire the materials when needed. Manufacturing resource planning expands MRP systems to include related financial, accounting, personnel, engineering, and marketing information. Purchasing is the process of acquiring necessary goods and services in exchange for funds or other remuneration.

Facilities issues focus mainly on expansion and contraction decisions, facilities location, and facilities layout. In expanding facilities, top managers usually have three major policy options: capacity leads demand, capacity is in approximate equilibrium with demand, or capacity lags demand. Most facilities location problems fall into one of four categories: single facility, multiple factories and warehouses, competitive retail outlets, and emergency services. There are three major types of facilities layouts: process, product, and fixed position.

Recent innovations in process technology center on computer-integrated manufacturing. Because of their complexity, CIM systems often face formidable implementation barriers that fall into three main categories: structural, human, and technical. Process technology advances also are increasingly applicable to organizations in service industries.

 Workbook Ex. 28, 29on page 115.

III. Read the illustration of “operations management” filling in the words from the box. Give your examples.

transform set customers operations services orders

Operations management is the total … of managerial activities used by an organization to … resource inputs into products and … . When NCR buys electronic components, assembles them into computers, and then ships them to …, it is using operations management. When a Pizza Hut employee … new food products and paper napkins and then combines dough, cheese, and tomato paste to create a pizza, he or she is using … management.

IV. What notion is described? The information above can be helpful for you:

-an activity in a particular area industry, business;

-the amount of something that a person, a machine or an organization produces;

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-a plan designed for a particular purpose;

-the action or process of making plans for something;

-a piece of equipment, a building, a service etc that is provided for a particular purpose.

V. Study table 3 and answer the question:

In what operation (bank, restaurant, hospital, university, manufacturing plant or airline) are the given inputs transformed into the given outputs?

VI. While listening to the lecture on economics your friend has made some notes but put no full stops. So, he understands nothing. Can you help him? Translate the extract to confirm your decision.

The responsibilities of operations management are called the “five M’s’: men, machines, methods, materials, and money the management of men, machines, and methods involves maintaining a flexible production process with a work force that can readily adapt to new equipment and schedules responsibilities for materials include the management of both raw materials and information materials money management, including such areas as inventory, plant capacity, and customer service, is a major responsibility and can determine the competitiveness of an entire operation.

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VII. Can you answer the questions?

1.What is the definition of “operations management”?

2.What do aspects of operations management include?

3.What helps to predict the demand for goods and services?

4.What can you say about facilities and technology?

5.What responsibilities of operations management do you know?

VIII. Draw a model of operations management. Label its components and show the relations. Give your comments.

Text 13

I. Listen to a native speaker and try to memorize the pronunciation of the words. Try to imitate the pronunciation.

II. Read the text.

HISTORY OF OPERATIONS MANAGEMENT

Operations management has existed for as long as people produced goods and services.

The history of operations management can be organized according to major contributions. There are seven of them.

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Division of labour. The division of labour is based on a very simple concept. Specialization of labour to a single task can result in greater productivity and efficiency than the assignment of many tasks to a single worker.

The first economist to discuss the division of labour was Adam Smith, author of the classic Wealth of Nations (1776). Smith noted that specialization of labour increases output because of three factors: (1) increased dexterity on the part of workers, (2) avoidance of lost time due to changing jobs, and (3) the addition of tools and machines. Although division of labour has been widely applied, it is now being reevaluated because of its effect on worker morale, turnover, job boredom, and job performance.

Standardization of parts. Parts are standardized so they can be interchanged. Standardization was practiced in early Venice, where rudders on warships were made to be interchangeable. Eli Whitney used interchangeable parts in musket production. When Henry Ford introduced the moving automobile assembly line in 1913, his concept required standardized parts as well as specialization of labour. The idea of standardized parts is by now so ingrained in our society that we really stop to think of it. For example, it is difficult to imagine light bulbs, which are not interchangeable.

Industrial revolution. The industrial revolution was in essence the substitution of machine power for human power. Great impetus was given to this revolution in 1764 by James Watt’s steam engine. The industrial revolution was further accelerated with the development of the gasoline engine and electricity.

Scientific study of work. The scientific study of work is based on the notion that the scientific method can be used to study work as well as physical and natural systems. This school of thought aims to discover the best method of work. The scientific study of work has come under attack by labour unions, workers, and academics. In some cases, these attacks have been justified because the approach was misapplied or used as a “speedup” campaign by management. Nevertheless, the principles of scientific management can still be applied in today’s world by recognizing the interaction between the social and technical work environments.

Human relations. The human relations movement highlighted the central importance of motivation and the human element in work design. The human relations school of thinking has led to job enrichment, now recognized as a method with a great deal of potential for “humanizing the work place” as well as improving productivity.

Decision models. Decision models can be used to represent a productive system in mathematical terms. A decision model is expressed in terms of performance measures, constraints, and decision variables. The purpose of

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such a model is to find optimal or satisfactory values of decision variables, which improve systems performance within the applicable constraints. These models can then help guide management decision-making.

Computers. The use of computers has dramatically changed the field of operations management since computers were introduced into business in 1950s. Most manufacturing operations now employ computers.

Each of these seven areas of contributions has advanced the operations management field in a major way. Furthermore, the contributions are still applicable to the management of modern operations, although sometimes in modified form.

 Workbook Ex. 30, 31on page 115.

III. Work in small groups. Use the words to make a story. Every member of the group has to make up not less than 3 sentences. Then one representative from each group tells the story to all the students. The best variant is chosen and the winnersareannounced.

Labour, interchange, revolution, humanizing, computer.

IV. Look at fig. 5. What paragraphs of the «History оf Operations Management» do the pictures (a, b, c, d) refer to? Draw pictures to the other paragraphs of the text in question and describe them.

 Workbook Ex. 32on page 115 – 116.

V. Read additional information about computerization of managerial work. Do you agree with it? Find out the opinion of your partner asking him not less than 3 questions.

The information used on the job by a manager does not have to be computerized. Much of the information in organizations is available in manuals, file folders, and typewritten lists.

Computers provide selectivity and accessibility by storing data electronically. Numerous uses that a manager can make of computers have been identified. Major areas include accounting, reporting, and calculating data; writing; searching for and retrieving information; communications; graphics presentations; planning, scheduling, and monitoring; analysis; memory; processing organizational records; learning; developing new programs; and decision making.

VI. Speak on the history of operations management using pictures from exercise IV.

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Fig. 5

Text 14

I. Listen to a native speaker and try to memorize the pronunciation of the words. Try to imitate the pronunciation.

II. What management positions do you know? Make a list of them. Read the text and add new information.

MANAGEMENT POSITIONS IN OPERATIONS

Operations Manager. In manufacturing organizations, titles include plant manager, director of manufacturing, and vice president of manufacturing. In service industries, titles include store manager, office manager, and vice president of operations. These positions are concerned with overall coordination and direction of the operations function. Specific responsibilities include strategic planning, policy setting, budgeting, management of other managers, and control of operations.

Materials Manager. This position is concerned with managing and integrating the flow of materials from raw materials to finished products. The materials manager will typically have subordinate managers in purchasing, inventory control, and production control.

Purchasing Manager. The purchasing manager is concerned with assuring an adequate flow of raw materials. Purchasing managers work closely with vendors. They negotiate prices, perform vendor selection, and evaluate vendor performance.

Inventory Manager. The inventory manager is concerned with ordering the proper amount of material at the right time. Inventory managers often utilize

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