History Of Operational Management Production and Operation Management
What  is Management???
Functions Of Management <ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Leading </li></ul><ul><li>Controll...
Levels of Management
Operational Management <ul><li>Definition: from msn Encarta:- </li></ul><ul><li>The organizing and controlling of the fund...
Definition from BNET business dictionary  <ul><li>The maintenance, control, and improvement of organizational activities t...
Operations Management <ul><li>Operational management is the set of activities that creates value in the form of goods and ...
The Heritage of OM <ul><li>Division of labor (Adam Smith 1776; Charles Babbage 1852) </li></ul><ul><li>Standardized parts ...
Taylor’s Principles <ul><li>Matching employees to right job </li></ul><ul><li>Providing the proper training </li></ul><ul>...
New Challenges in OM <ul><li>Global focus </li></ul><ul><li>Just-in-time </li></ul><ul><li>Supply chain partnering </li></...
Levels of  operational management <ul><li>Strategic level </li></ul><ul><li>tactical level </li></ul><ul><li>operational l...
Strategic level <ul><li>strategic issues include determining the size and location of manufacturing plants, deciding the s...
Tactical Level <ul><li>Tactical issues include plant layout and structure, project management methods, and equipment selec...
Operational level <ul><li>Operational issues include production scheduling and control, inventory management, quality cont...
Importance of Operations <ul><li>Competing on Cost </li></ul><ul><li>Competing on Quality </li></ul><ul><li>Competing on F...
Competing on Cost <ul><li>Elimination of all waste </li></ul><ul><li>Tighten productivity standards </li></ul>
Competing on Quality <ul><li>Quality in defense: </li></ul><ul><ul><li>Minimize defect rate </li></ul></ul><ul><ul><li>Con...
Competing on Flexibility <ul><li>Ability to produce variety of products </li></ul><ul><li>Introduce new products </li></ul...
Competing on Speed <ul><li>Fast moves </li></ul><ul><li>Fast adaptations </li></ul><ul><li>Tight linkage with suppliers </...
<ul><li>Conclusion  </li></ul>
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Introduction To Operation Management

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Introduction To Operation Management

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Introduction To Operation Management

  1. 1. History Of Operational Management Production and Operation Management
  2. 2. What is Management???
  3. 3. Functions Of Management <ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Leading </li></ul><ul><li>Controlling </li></ul>
  4. 4. Levels of Management
  5. 5. Operational Management <ul><li>Definition: from msn Encarta:- </li></ul><ul><li>The organizing and controlling of the fundamental business activity of providing goods and services to customers </li></ul>
  6. 6. Definition from BNET business dictionary <ul><li>The maintenance, control, and improvement of organizational activities that are required to produce goods or services for consumers. </li></ul>
  7. 7. Operations Management <ul><li>Operational management is the set of activities that creates value in the form of goods and services by transforming input into output. </li></ul>
  8. 8. The Heritage of OM <ul><li>Division of labor (Adam Smith 1776; Charles Babbage 1852) </li></ul><ul><li>Standardized parts (Whitney 1800) </li></ul><ul><li>Scientific Management (Taylor 1881) </li></ul><ul><li>Coordinated assembly line (Ford/ Sorenson 1913) </li></ul><ul><li>Gantt charts (Gantt 1916) </li></ul><ul><li>Motion study (Frank and Lillian Gilbreth 1922) </li></ul><ul><li>Quality control (Shewhart 1924; Deming 1950) </li></ul>
  9. 9. Taylor’s Principles <ul><li>Matching employees to right job </li></ul><ul><li>Providing the proper training </li></ul><ul><li>Providing proper work methods and tools </li></ul><ul><li>Establishing legitimate incentives for work to be accomplished </li></ul>Management Should Take More Responsibility for:
  10. 10. New Challenges in OM <ul><li>Global focus </li></ul><ul><li>Just-in-time </li></ul><ul><li>Supply chain partnering </li></ul><ul><li>Rapid product development, alliances </li></ul><ul><li>Mass customization </li></ul><ul><li>Empowered employees, teams </li></ul>To From <ul><li>Local or national focus </li></ul><ul><li>Batch shipments </li></ul><ul><li>Low bid purchasing </li></ul><ul><li>Lengthy product development </li></ul><ul><li>Standard products </li></ul><ul><li>Job specialization </li></ul>
  11. 11. Levels of operational management <ul><li>Strategic level </li></ul><ul><li>tactical level </li></ul><ul><li>operational level </li></ul>
  12. 12. Strategic level <ul><li>strategic issues include determining the size and location of manufacturing plants, deciding the structure of service or telecommunications networks, and designing technology supply chains. </li></ul>
  13. 13. Tactical Level <ul><li>Tactical issues include plant layout and structure, project management methods, and equipment selection and replacement. </li></ul>
  14. 14. Operational level <ul><li>Operational issues include production scheduling and control, inventory management, quality control and inspection, traffic and materials handling, and equipment maintenance policies </li></ul>
  15. 15. Importance of Operations <ul><li>Competing on Cost </li></ul><ul><li>Competing on Quality </li></ul><ul><li>Competing on Flexibility </li></ul><ul><li>Competing on Speed </li></ul>
  16. 16. Competing on Cost <ul><li>Elimination of all waste </li></ul><ul><li>Tighten productivity standards </li></ul>
  17. 17. Competing on Quality <ul><li>Quality in defense: </li></ul><ul><ul><li>Minimize defect rate </li></ul></ul><ul><ul><li>Conform to design specifications </li></ul></ul><ul><li>Opportunity to please the customer </li></ul><ul><ul><li>Understand attitudes towards and expectations of quality </li></ul></ul>
  18. 18. Competing on Flexibility <ul><li>Ability to produce variety of products </li></ul><ul><li>Introduce new products </li></ul><ul><li>Modify existing products </li></ul><ul><li>Respond quickly to customer needs </li></ul><ul><li>Marketing wants variety for customers </li></ul>
  19. 19. Competing on Speed <ul><li>Fast moves </li></ul><ul><li>Fast adaptations </li></ul><ul><li>Tight linkage with suppliers </li></ul>
  20. 20. <ul><li>Conclusion </li></ul>
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