Your SlideShare is downloading. ×
Intr. To Om (Chp1)
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Intr. To Om (Chp1)

1,783
views

Published on


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,783
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Chapter 1 - Introduction to Operations Management Operations Management Mudassar Salman
  • 2. Learning Objectives
    • Define OM
    • Role of OM in business
    • Decisions that operations managers make
    • OM differences between service and mfg.
    • Major historical developments in OM
    • Identify current trends in OM
    • Define information flow between OM and other business functions
  • 3. What is Operations Management?
    • The business function responsible for planning , coordinating , and controlling the resources needed to produce a company’s products and services
  • 4. Typical Organization Chart
  • 5. Organizational Functions
    • Major Functions
      • Finance
      • Marketing
      • Operations Mnagement
    • Support Functions
      • Accounting
      • Purchasing
      • Human Resources
      • Engineering
  • 6. OM’s Transformation Role
  • 7. Why OM?
    • “ In business today, the emphasis is not so much on what you make , but on how you do business . Dell makes computers just like every other PC manufacturer.” Quote: KT CEO on CNBC 4/99
    • The resurgence of American business in the 1990’s capitalized on improved operations.
  • 8. Operations Management
    • Many companies like Amazon.com manage almost all aspects of their operations.
    • Other companies outsource certain functions to other companies.
    • Value added is the net increase between the final value of a product and value of all inputs.
    • Efficiency means being able to perform activities well, at the lowest possible cost.
  • 9. Differences between Manufacturers and Service Organizations
    • Services:
    • Intangible product
    • Product cannot be inventoried
    • High customer contact
    • Short response time
    • Labor intensive
    • Manufacturers:
    • Tangible product
    • Product can be inventoried
    • Low customer contact
    • Longer response time
    • Capital intensive
  • 10. Similarities-Service/Manufacturers
    • All use technology
    • Both have quality, productivity, & response issues
    • All must forecast demand
    • Each will have capacity, layout, and location issues
    • All have customers and suppliers
    • All have scheduling and staffing issues
  • 11. Trends in OM
    • Service sector growing to 80% of non-farm jobs
    • Global competitiveness
    • Demands for higher quality
    • Huge technology changes
    • Time based competition
    • Work force diversity
  • 12. OM Decisions
  • 13. Plan of Book-Chapters link to Types of OM Decisions
  • 14. Historical Development of OM
    • Industrial revolution Late 1700s
    • Scientific management Early 1900’s
    • Human relations movement 1930s to 1960s
    • Management science Mid-1900s
    • Computer age 1970s
    • Just-in-Time Systems (JIT) 1980s
    • Total quality management (TQM) 1980’s
    • Reengineering 1990s
    • Flexibility 1990s
    • Time-Based Competition 1990s
    • Supply chain Management 1990’s
    • Global Competition 1990s
    • Environmental Issues 1990s
    • Electronic Commerce Late 1990s
  • 15. Historical Developments of OM – Contd.
    • Industrial Revolution – Brought in innovations that changed production by using machine power, instead of human power. ( Steam Engine & Division of Labor )
    • Scientific Management – Brought the concepts of analysis and measurement of the technical aspects of work design, and development of moving assembly lines and mass production. ( piece rate incentives & stop watch studies )
    • Human Resource Movement – Focused on human elements of job design, such as worker motivation and job satisfaction. ( Hawthorne effect, Job enlargement & Job enrichment )
    • Management Science – focused on development of quantitative techniques to solve operations problems.
    • Computer Age – enabled processing large amounts of data and allowed widespread use of quantitative procedures. ( Material Resource Planning, MRP )
  • 16. Historical Developments of OM – Contd.
    • Environmental Issues – considered waste reduction, the need for recycling and product reuse. ( ISO-14000 )
    • Just-in-time Systems – designed to achieve high-volume production with minimal inventories.
    • Total Quality Management – sought to eliminate causes of production defects. ( ISO-9000 )
    • Reengineering – required redesigning a company’s processes in order to provide greater efficiency and cost reduction. ( We’ve been doing things in this way since long )
    • Global Competition – designed operations to compete in global environment. ( NAFTA, GATT, EU & SAFTA )
    • Flexibility – offered customization on a large scale. ( mass customizations )
    • Time-based Competition – based on time, such as speed of delivery.
  • 17. Historical Developments of OM – Contd.
    • Supply Chain Management – focused on reducing the overall cost of the system that manages the flow of materials and information from suppliers to final customers.
    • Electronic Commerce – used the internet for conducting business activity.
      • Business to business (B2B)
      • Business to customers (B2C)
      • Customer to customer (C2C)
  • 18. Today’s OM Environment
    • Customers demand better quality, faster deliveries, and lower costs
    • Increased cross-functional decision making (among various functions of organization)
    • Recognized need to better manage information using ERP and CRM systems.
      • Customer relationship management – collection of customer specific data.
      • Enterprise resource planning – software systems, used to identify & plan the organization wide resources needed to coordinate all activities, involved in producing and delivering products.
      • Lean systems – total system approach to create efficient operations.
  • 19. OM in practice
    • OM – most diverse in terms of tasks performed
    • Chief of Operations
      • Mid-level managers – Manufacturing, Operations, QC, Plant and other managers
      • Below – Quality specialist, Production analyst, Inventory analyst and Production supervisor
    • OM jobs offer
      • High salaries
      • Interesting work,
      • Career advancement opportunities
    • All business functions need information from OM and at the same time OM requires information from all business functions.
  • 20. Business Information Flow
  • 21. Chapter 1 Highlights
    • OM is function that manages the resources that add value
    • Its role is to transform inputs into products or services
    • Decisions are many and vary from daily tactical to strategic
    • Key differences between mfg. and service companies are tangibility of product and degree of customer contact
    • Historical milestones range from 1700s Industrial Revolution to the modern Electronic Commerce age
    • OM must understand and implement major process changes like JIT, TQM, supply chain management, and environmental changes
    • OM works closely with all other business functions

×