OPERATIONS MANAGEMENT

1. Chapter 1
Introduction to the Field

2. • What is Operations and Supply
Management?
• Why Study Operations
Management?
• Transformation Processes Defined
• Differences between Services and
Goods
• The Importance of Operations
Management
• Historical Development of OM
• Current Issues in OM
OBJECTIVES
1-2

3. What is Operations and Supply Management?
Operations and Supply
Management (OM) is defined
as the design, operation, and
improvement of the systems
that create and deliver the
firm’s primary products and
services
1-3

4. Why Study Operations Management?
Business Education
Systematic Approach
to Org. Processes
Career Opportunities
Cross-Functional
Applications
Operations
Management
1-4

5. What is a Transformation Process?
Defined
A transformation process is
defined as a user of resources
to transform inputs into some
desired outputs
1-5

6. Transformations
• Physical--manufacturing
• Locational--transportation
• Exchange--retailing
• Storage--warehousing
• Physiological--health care
• Informational--telecommunications
1-6

7. Operations and Supply Management
Supply Chain Processes
Sourcing
Processes
Manufacturing
Processes
Service
Processes
Distribution
Processes
Logistics
Processes
Logistics
Processes
1-7

8. What is a Service and What is a Good?
• “If you drop it on your foot, it
won’t hurt you.” (Good or
service?)
• “Services never include goods
and goods never include
services.” (True or false?)
1-8

9. The Goods-Services Continuum
1-9

10. Historical Development of OM
• JIT and TQC
• Manufacturing Strategy Paradigm
• Service Quality and Productivity
• Total Quality Management and Quality
Certification
1-10

11. Historical Development of OM (cont’d)
• Business Process Reengineering
• Six-Sigma Quality
• Supply Chain Management
• Electronic Commerce
• Service Science
1-11

12. Current Issues in OM
• Humanitarian Logistics and Supply
Chain Management
• Sustainable Operations Management
• Coordinate the relationships between
mutually supportive but separate
organizations.
• Optimizing global supplier, production,
and distribution networks.
1-12

13. Current Issues in OM (cont’d)
• Increased co-production of goods
and services
• Managing the customers
experience during the service
encounter
• Raising the awareness of
operations as a significant
competitive weapon
1-13