INTRODUCTION OF
OPERATIONS
MANAGEMENT
WHAT IS OPERATIONS
MANAGEMENT
• Operations Management is
concerned with the production of
goods and services . In conjunct...
Value-Added
The difference between the cost of inputs
and the value or price of outputs.

Value added
Inputs
Land
Labor
Ca...
Introduction to Operations
Management

• Operations Management includes:
– Forecasting
– Capacity planning
– Scheduling
– ...
A Preview of Operations
Management
• Introduction
Organizational
Levels
– Executive
Management
– Operations
Management
– O...
Why Study Operations
Management?
Systematic Approach
to Org. Processes

Business Education

Operations
Management

Cross-F...
Manufacturing Operations
• Types of Manufacturing Operations
– Based on Processing after Order
• Make-to-order (MTO)
• Mak...
Manufacturing Operations
• Types of Manufacturing Operations
Job Shop

Product
1

A

Product
2

C

Line-Flow

B

D

Produc...
Service Operations
• Defining Services
– The Transformation Process

Inputs

Process

Output

Performance
Measurement
CLASSIFICATION OF
SERVICE OPERATIONS
•Extent of service contact.
•Extent of service customization.
•Extent of relationship...
High Contact Services
• Customer is an essence in the
production of services.
• Scheduling is difficult as customer
demand...
LOW CONTACT SERVICES
• Customer cannot strongly influence
the process by which the service is
provided.
• Standardization ...
Service Operations
• Defining Services
Goods
100%

75

50

Services
25

0

25

Video Rental Stores
Appliance Stores
Floris...
Manufacturing vs Service
Characteristic

Manufacturing Service

Output

Tangible

Customer contact

Low

High

Uniformity ...
Service Operations
• Discussion Questions
• 1. Why are quality and productivity more difficult
to measure in service opera...
Upcoming SlideShare
Loading in...5
×

Opm lect 1

393

Published on

Muhammad Haris

Published in: Education, Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
393
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
19
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Opm lect 1

  1. 1. INTRODUCTION OF OPERATIONS MANAGEMENT
  2. 2. WHAT IS OPERATIONS MANAGEMENT • Operations Management is concerned with the production of goods and services . In conjunction with other functional areas it also deals with the management of resources (inputs) and the distribution of finished goods and services to customers (outputs)
  3. 3. Value-Added The difference between the cost of inputs and the value or price of outputs. Value added Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Feedback Control Feedback Feedback
  4. 4. Introduction to Operations Management • Operations Management includes: – Forecasting – Capacity planning – Scheduling – Managing inventories – Assuring quality – Motivating employees – And more . . .
  5. 5. A Preview of Operations Management • Introduction Organizational Levels – Executive Management – Operations Management – Operations
  6. 6. Why Study Operations Management? Systematic Approach to Org. Processes Business Education Operations Management Cross-Functional Applications Career Opportunities
  7. 7. Manufacturing Operations • Types of Manufacturing Operations – Based on Processing after Order • Make-to-order (MTO) • Make-to-stock (MTS) • Assemble-to-order (ATO) – Based on System Flexibility / Economics • The Job Shop • Batch Production • Line-Flow Production (and Continuous Flow)
  8. 8. Manufacturing Operations • Types of Manufacturing Operations Job Shop Product 1 A Product 2 C Line-Flow B D Product 1 A D B Product 2 C B A
  9. 9. Service Operations • Defining Services – The Transformation Process Inputs Process Output Performance Measurement
  10. 10. CLASSIFICATION OF SERVICE OPERATIONS •Extent of service contact. •Extent of service customization. •Extent of relationship between customer and firm.
  11. 11. High Contact Services • Customer is an essence in the production of services. • Scheduling is difficult as customer demand varies. • Work force attitude effects the customer’s view of the services.
  12. 12. LOW CONTACT SERVICES • Customer cannot strongly influence the process by which the service is provided. • Standardization makes managerial control easy and straightforward. • Low contact service firms tend to have a systematic and predictable operation.
  13. 13. Service Operations • Defining Services Goods 100% 75 50 Services 25 0 25 Video Rental Stores Appliance Stores Florists Fast-food Restaurants Gourmet Restaurants Lawn Services Hospitals Banks 50 75 100%
  14. 14. Manufacturing vs Service Characteristic Manufacturing Service Output Tangible Customer contact Low High Uniformity of input High Low Labor content Low High Uniformity of output High Low Measurement of productivity Easy Difficult Opportunity to correct quality problems High Low High Intangible
  15. 15. Service Operations • Discussion Questions • 1. Why are quality and productivity more difficult to measure in service operations than manufacturing operations? 2. In what ways might the management style of a service operations manager differ from that of a manufacturing operations manager? 3. For some service industries with which you are familiar, describe some ways they are trying to improve productivity.
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×