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Operations Management CHAPTER 1

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1.1 What is OM?
1.2 Why study OM?
1.3 What do Op. Managers do?
1.4 Organizing to produce G&S
1.5 Heritage of OM
1.6 Operations as a service

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Operations Management CHAPTER 1

  1. 1. Operations management MARÍA GONZÁLEZ BLÁZQUEZ ÁLVARO TERRY ÁLVAREZ FELISA DEL VIEJO NÚÑEZ
  2. 2. Index  What is Operations Management?  Why Study OM?  What Operations Managers Do?  Organizing to Produce Goods and Services • Goods .Definition and characteristics • Services. Definition and characteristics  The Heritage of OM  Operations as a Service
  3. 3. What is Operations Management?  OM is defined as: “The Science and the Art of ensuring that goods and services are created and delivered successfully to customers”
  4. 4. What is Operations Management?  Deals with :  The design and management of  products  processes  services  supply chains  It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.
  5. 5. Why Study OM?  OM is an integrative body of knowledge; whose skills are needed in industries as diverse as health care, education, telecommunications, lodging, food service, banking, consulting and manufacturing
  6. 6. Why Study OM?  OM is one of the three major functions of any organization, and its integrally related to all the other business functions.  We study OM because we want to know how goods and services are produce.  We study OM to understand what operations managers do.  We study OM because it is such a costly part of an organization.
  7. 7. What Op. Managers Do?
  8. 8. What Op. Managers Do?  Key activities;  Helping organizations to do more with less  Exploiting technology to improve productivity  Building quality into goods, services, and processes  Determining Schedules  Creating a high-performance workplace  Continually learning and adapting the organization to global and environmental changes
  9. 9. Organizing to Produce Goods and Services  A Good is a physical product that you can see, touch, or possible consume  Durable Goods --> >= 3 years  Non-Durable --> <3 years  A Service is any primary or complementary activity
  10. 10. Characteristics of goods  Tangible product  Production usually separate from consumption  Can be inventoried  Low customer interaction
  11. 11. Characteristics of services  Intangible product  Produced & consumed at same time  Often unique  High customer interaction  Often knowledge-based
  12. 12. What is a service and a good? 1. “If you drop it on your foot, it won´t hurt you”  GOOD OR SERVICE? 2. “Services never include goods and goods never include services” 1. TRUE OR FALSE 3.
  13. 13. GOODS SERVICES 1. Can be resold 2. Can be inventoried 3. some aspects of quality measurable 4. Selling is distinct from production 5. Transportable 6. Often easy to automate 1. Reselling unsual 2. Difficult to inventory 3. Qualify dificult to measure 4. Selling is part of service 5. Provider, not product, is transportable 6. Often difficult to automate
  14. 14. The Heritage of OM
  15. 15. The Heritage of OM  Industrial revolution  Division of Labor , Adam Smith  Scientific Management  Moving Assembly Line , Henry Ford  Human Relations  Motivation theories  Management Science  Linear Programming, George Dantzig  Quality revolution  JIT and TQM  Globalization  EU  Information Age/Internet revolution  www, ERP , E-commerce, supply chain management 1776 1913 1940’s-60’s 1947 1970 1970’s-80’s 1990’s
  16. 16. Five eras of operation management
  17. 17. Operations as a Service  Repair and Maintenance  Government  Food and Clothing  Transportation  Insurance  Financial  Education  Legal  Medical  Other Professional Occupation
  18. 18. BUT.. Goods contains services & services contain goods
  19. 19. Example  “if a person goes to a restaurant that offers food, the food would become the good, while the ambience or the waiter’s service will become service”
  20. 20. CASE STUDY
  21. 21. ANY QUESTIONS?

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