Mo bab 01 introduction to the fields

1. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 1
Introduction to the FieldIntroduction to the Field
Operations Management
For Competitive Advantage
CHASE AQUILANO JACOBS
ninth edition
Chapter 1

2. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 2
Chapter 1
Overview: Introduction to the Field
• Operations Management
• Why Study Operations Management?
• Production System Defined
• Operations as a Service
• Plan of This Book
• Historical Development of OM
• Current Issues in OM

3. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 3
What is Operations Management?
Defined
Operations management (OM) is defined
as the design, operation, and improvement
of the systems that create and deliver the
firm’s primary products and services.

4. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 4
Why Study Operations
Management?
Operations
Management
Business Education
Systematic Approach
to Org. Processes
Career Opportunities
Cross-Functional
Applications

5. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 5
What is a Production System?
Defined
A production system is defined as a user
of resources to transform inputs into some
desired outputs.

6. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 6
Transformations
• Physical--manufacturing
• Locational--transportation
• Exchange--retailing
• Storage--warehousing
• Physiological--health care
• Informational--telecommunications

7. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 7
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?)

8. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 8
Core services are basic things that
customers want from products they
purchase.
Core Services
Definition

9. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 9
Core Services Performance Objectives
Operations
Management
Flexibility
Quality
Speed
Price (or cost
Reduction)

10. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 10
Value-added services differentiate the
organization from competitors and build
relationships that bind customers to the
firm in a positive way.
Value-Added Services
Defined

11. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 11
Value-Added Service Categories
Operations
Management
Information
Problem Solving
Sales Support
Field Support

12. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 12
Plan of This Book
I. Operations Strategy
and Managing Change
1. Introduction
to OM
2. Operations
Strategy and
Competitiveness
3. Project
Management
III. Supply
Chain Design
8. Supply
Chain Strategy
9. Strategic
Capacity
Management
10. Just-in-Time
Outsourcing and
Lean Systems
IV. Planning and
Controlling the
Supply Chain
11. Forecasting
12. Aggregate
Planning
V. Revising
the System
13. Inventory
Control
14. Materials
Requirements
Planning
16. Consulting and
Reengineering
17. Synchronous
Manufacturing &
Theory of
Constraints
II. Product Design
and Process
Selection
4. Understanding
Processes
5. Manufacturing
Product and
Process Design
6. Service
Products and
Process Design
7. Quality
Management

13. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 13
Historical Development of OM
• JIT and TQC.
• Manufacturing Strategy Paradigm.
• Service Quality and Productivity.
• Total Quality Management and Quality
Certification.

14. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 14
Historical Development of OM (cont’d)
• Business Process Reengineering.
• Supply Chain Management.
• Electronic Commerce.

15. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 15
Current Issues in OM
• Effectively consolidating the operations
resulting from mergers.
• Developing flexible supply chains to enable
mass customization of products and
services.
• Managing global supplier, production and
distribution networks.

16. Operations Management For Competitive Advantage
©The McGraw-Hill Companies, Inc., 2001CHASE AQUILANO JACOBS
ninth edition 16
Current Issues in OM (cont’d)
• Increased “commiditization” of suppliers.
• Achieving the “Service Factory”.
• Achieving good service from service firms.