Operations management involves designing, operating, and controlling processes that transform inputs such as labor, materials, and capital equipment into goods and services for customers. It encompasses both manufacturing and services and plays a strategic role in competitive success by effectively managing productivity. Value chain management aims to create an integrated strategy across all members of the value chain to meet customer needs and maximize value. Current issues in operations include increased automation, quality initiatives like ISO certification and Six Sigma, and mass customization which uses flexible technology to provide customized products.

1. Management
Presentation
By:
Hafiza Wajiha Hamid

2. Chapter : 18

3. What is Operations Management?
Operations Management
The design, operation, and control of the
transformation process that converts such resources
as labor and raw materials into goods and services
that are sold to customers.
Raw
Material
Finish
Goods

4. Importance of Operations
Management
■It encompasses both services and manufacturing.
■It is important in effectively and efficiently managing
productivity.
■It plays a strategic role in an organization’s competitive
success

5. o Goods
o Services
o People
o Technology
o Capital
o Equipment
o Material
o Information
INPUT
The Operations System
Transformation
Process
OUTPUT

6. Value Chain Management
The process of managing the entire sequence
of integrated activities and information about
product flows along the entire value chain.

7. Goal of Value Chain Management
To create a value chain strategy that fully integrates all
members into a seamless chain that meets and exceeds
customers’ needs and creates the highest value for the
customer.

8. Managing Operations by
Using Value Chain
Management

9. Value Chain Strategy Requirements
Or Human Resource

10. Benefits of Value Chain Management
Improved
Procurement
Improved Logistics
Enhanced
Customer Order
Management
Improved Product
Development
Benefits of
Value Change
Management

11. Obstacles to Value Chain Management

12. Current Issues
in Managing
Operations

13. ■Technology’s Role in Manufacturing
□Increased automation and integration of
production facilities with business systems to control
costs.
▫Predictive maintenance, remote diagnostics, and
utility cost savings
■Quality Initiatives
■Quality is ability of a product or service to reliably
do what it’s supposed to do and to satisfy customer
expectations.

14. ■Quality Initiatives
□Planning for quality
□Organizing for quality
□Leading for quality
□Controlling for quality
■Quality Goals
□ISO 9000 certification
□Six Sigma standards

15. ■Mass Customization
□Is a design-to-order concept that provides consumers
with a product when, where, and how they want it.
□Makes heavy use of technology (flexible manufacturing
techniques) and engages in a continual dialogue with
customers.
□Benefits of Mass Customization
Creates an important relationship between the firm and the
customer in providing loyalty-building value to the customer and
in garnering valuable market information for the firm.

16. Any
questions?