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Presentaion for land bank april 2013 chap 1

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    • 1. INTRODUCTION to Operation Management Chapter 1 Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc. 2004 1
    • 2. Chapter Outline Definition of Operations Management Decisions at Pizza U.S.A. Operations Decisions - A Framework Cross-Functional Decision Making Operations as a System Contemporary Operations Themes McGraw-Hill/ Irwin 2 © The McGraw-Hill Companies, Inc. 2004
    • 3. Definition of Operations Management er at i ons i s r es pons i bl e f or s uppl yi ng t he pr oduc t r v i c e of t he or gani z at i on. Oper at i ons m anager s m ec i s i ons r egar di ng t he oper at i ons f unc t i on and i ec t i on wi t h ot her f unc t i ons . The oper at i ons m ana and c ont r ol t he pr oduc t i on s ys t em and i t s i nt er f n t he or gani z at i on and wi t h t he ext er nal env i r on McGraw-Hill/ Irwin 3 © The McGraw-Hill Companies, Inc. 2004
    • 4. The Operations Definition Operations as a basic function Operations as a transformation process Operations as the technical core Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc. 2004 4
    • 5. The Operation As A Basic Function McGraw-Hill/ Irwin 5 © The McGraw-Hill Companies, Inc. 2004
    • 6. Basic Function The best way to start understanding the nature of P/OM is to look around you. Everything you can see around you (except the flesh and the blood) has been done by P/OM. Every service you consumed today (radio station, bus service, lecture, etc.) has also been basically P/OM. P/O managers create everything you buy, sit on, wear, eat, throw at people and throw away. McGraw-Hill/ Irwin 6 © The McGraw-Hill Companies, Inc. 2004
    • 7. Operations As A Transformation Process McGraw-Hill/ Irwin 7 © The McGraw-Hill Companies, Inc. 2004
    • 8. Operations as a System (Figure 1.1) Ener gy Mat er ials Labor Capit al I nf or mat ion Tr ansf or mat ion (Conver sion) Pr ocess Goods or Ser vices Feedb infor ack mationfor contr ofpr inpu ol ocess ts andpr tech ogy ocess nol McGraw-Hill/ Irwin 8 © The McGraw-Hill Companies, Inc. 2004
    • 9. INPUT OUTPUT Material Goods Machines TRANSFORMATION Services Manpower PROCESS Methods & Management Money FEEDBACK McGraw-Hill/ Irwin 9 © The McGraw-Hill Companies, Inc. 2004
    • 10. THE 5 Ps or THE 5 Ms POM 5Ps People Plants Parts Processes Planning and Control Irwin/McGraw-Hill 5Ms Manpower Machines Money Materials Methods and Management © The McGraw-Hill Companies, Inc. 2004 10
    • 11. Transformation Processes Physical Manufacturing Location Transportation Warehouse Retail Health care Entertainment Communications Exchange Physiological Psychological Informational Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc. 2004 11
    • 12. Characteristics of Goods Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc. 2004 12
    • 13. Characteristics of Services Intangible product Inconsistent product definition Produced and consumed at same time Cannot be inventoried High customer interaction. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc. 2004 13
    • 14. Operations as the Technical Core McGraw-Hill/ Irwin 14 © The McGraw-Hill Companies, Inc. 2004
    • 15. Finance and Accounting Production and inventory data Capital budgeting and investments Marketing Product/service availability Lead time estimates Delivery schedules Sales forecasts Human Resources Personnel needs Hiring/firing/training Suppliers Orders for materials Production/delivery McGraw-Hill/ Irwin Technology plans Costs analysis Status of orders Promotions Customer feedbacks Skill sets Job design/work measurement Quality data Performance specs 15 © The McGraw-Hill Companies, Inc. 2004
    • 16. Relation of Operations to its Environment Figure 1.2 SOCI ET Y Ext er nal Envir onment Human Engineer ing Mar ket ing Resour ces Supplier s Account ing Finance MI S GOVERNMENT McGraw-Hill/ Irwin CUSTOMERS Oper at ions t r ansf or mat ion syst em COMPETI TORS 16 © The McGraw-Hill Companies, Inc. 2004
    • 17. Key Points in OM Definition Decisions  Functions System McGraw-Hill/ Irwin 17 © The McGraw-Hill Companies, Inc. 2004
    • 18. Cross-Functional Decision Making Operations as the primary function Other primary functions: – Marketing – Finance Supporting functions Major cross-functional decisions McGraw-Hill/ Irwin 18 © The McGraw-Hill Companies, Inc. 2004
    • 19. Definition of Operations Management The design, operation, and improvement of production systems that create the firm’s primary products or services. The design and control of the systems responsible for the productive use of raw materials, human resources, equipment, and facilities in the development of a product or services. McGraw-Hill/ Irwin 19 © The McGraw-Hill Companies, Inc. 2004
    • 20. Operations Management Planning Organizing Staffing Directing and Controlling Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc. 2004 20
    • 21. Desirable Features of the Process Low Cost High Quality Flexibility Speed of Delivery Innovation Environmentally Acceptable McGraw-Hill/ Irwin 21 © The McGraw-Hill Companies, Inc. 2004
    • 22. Major Decisions at Pizza USA A Framework for OM Process Quality Capacity Inventory McGraw-Hill/ Irwin 22 © The McGraw-Hill Companies, Inc. 2004
    • 23. Contemporary Operations Themes Service and Manufacturing (differences and implications) Customer-Directed Operations Time Reduction (Lean Operations) Integration of Operations and Other Functions Environmental Concerns Globalization of Operations Supply Chain Management McGraw-Hill/ Irwin 23 © The McGraw-Hill Companies, Inc. 2004

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