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Chapter 01-introduction to om

Chapter 01-introduction to om



This is a PP presentation on Chapter 1 - Introduction to OM

This is a PP presentation on Chapter 1 - Introduction to OM



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    Chapter 01-introduction to om Chapter 01-introduction to om Presentation Transcript

    • Chapter 1© Dr. Mehdi Kaighobadi, FAU
    • Basic Concepts Product Operating Systems Operations Management© Dr. Mehdi Kaighobadi, FAU
    • Product Core Peripheral Services “Facilitating Goods”© Dr. Mehdi Kaighobadi, FAU
    • Product DefinitionTotal package of values delivered tocustomers© Dr. Mehdi Kaighobadi, FAU
    • Operations Management(System’s View)Management of Decisions and Activities Neededto Effectively and Efficiently Transform the Inputsof an Operating System to Throughput of theSystem© Dr. Mehdi Kaighobadi, FAUFood for thought: What is the difference between “output” and “throughput?
    • Operations and SupplyManagementA Different ViewManagement of Decisions and Activities Needed to Effectivelyand Efficiently Transform the Inputs of an Operating System toOutputs of the System and Deliver them to the RightCustomers, at the Right Time and Place, and with the RightQuality/Quantity.© Dr. Mehdi Kaighobadi, FAU
    • Operations and SupplyManagement Key words/concepts in the definition: Right Product Customer (Consumers?) – What’s the difference? Delivery (speed vs. consistency) Quality Quantity Efficiency Effectiveness Value Integrated view© Dr. Mehdi Kaighobadi, FAU
    • Types of Transformations(NOT mutually exclusive) Physical (Manufacturing). Transform “A” into “B” Location (Transportation) Move “A” from location X tolocation Z Exchange (Retailing) – Be a middleman Storage (Warehousing) – Store for future use Physiological (Healthcare) – Change a patient physicallyand/or mentally. Informational (Telecommunication) – Facilitateexchange of data and info.© Dr. Mehdi Kaighobadi, FAU
    • A Typical Supply NetworkNotice that the word “chain” was not used; “network” was used)© Dr. Mehdi Kaighobadi, FAU
    • “Goods” versus “Services”Manufacturing Processes Tangible output Low consumer contact Homogenous output Output can be inventoried Long lead time Capital and labor intensive Quality/Productivity is lessdifficulty to define and thusmeasure Product and Process aredistinguished from each other.Services ProcessesIntangible outputHigh consumer contactHeterogeneous outputOutput cannot be inventoriedShorter lead timeLabor and information intensiveQuality/Productivity is harder todefine and thus measureServices are offered in “ServicePackage” form“Product” and “process” areoften the same.© Dr. Mehdi Kaighobadi, FAU
    • “Goods” and “Services”Not a B&W Classification!100% 75% 50% 25% 0% 100%75%50%25%Self-service groceriesAutomobileInstalled carpetingFast-food restaurantGourmet restaurantAuto maintenanceHaircutConsulting servicesGoods Services© Dr. Mehdi Kaighobadi, FAUClassifying a firm as “goods producing” or “service” operation is not a B&W case; it is amatter of degrees.
    • Why is “Operations” Important? It’s like asking why is having a “heart” important in yourhealth! Operation is the heart of any organization. (Note that it is“organization”, not just “business”) Without operations, other functions have no place inorganization. Studying operations makes it possible to realize how afirm integrates its functions around one major goal. Any organization has two fundamental functions (pareddown to the minimum); they are a) making and b)delivering. Operations is 100% responsible for the firstand at least 50% for the second.© Dr. Mehdi Kaighobadi, FAU