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Om 1


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Om 1

  1. 1. Operations Management West Coast University Patrick Leiman Nov.2007
  2. 2. I. Managing Operations <ul><li>The Role of Operations Management </li></ul><ul><li>The mix of manufactured items and services </li></ul><ul><li>Misunderstandings of the Operations Management task. </li></ul><ul><ul><li>OM is NOT: </li></ul></ul><ul><ul><ul><li>Production engineering </li></ul></ul></ul><ul><ul><ul><li>Operations research </li></ul></ul></ul>
  3. 3. II. Strategic Context <ul><li>Functions dominate strategic outcomes (Functional strategies vis-à-vis a corporate strategy) </li></ul><ul><li>The reactive role of OM </li></ul><ul><li>Markets are dynamic, OM is fixed </li></ul><ul><li>Linking marketing and operations </li></ul><ul><li>Order Qualifiers and Winners </li></ul><ul><li>Achieving the link </li></ul><ul><li>Strategic debate </li></ul><ul><li>Benchmarking </li></ul><ul><li>Market or marketing-led? </li></ul>
  4. 4. Dominant role of functions in corporate strategy formulation <ul><li>1945 – 1965: Production/Operations </li></ul><ul><ul><li>world demand > world capacity </li></ul></ul><ul><li>1965 – early 1980s: Marketing </li></ul><ul><ul><li>World capacity > world demand </li></ul></ul><ul><li>Early 1980s to present day: Marketing and/or Finance </li></ul><ul><ul><li>Recession in late 1970s and early 1980s. </li></ul></ul><ul><ul><li>Financial difficulty  emergence of finance/accounting function and its role in strategic formulation. </li></ul></ul>
  5. 5. The reactive role of OM <ul><li>Marketing/sales dept is not expected to sell 1/7 from that week’s sales, or in one week ¼ of the month’s sales, or in a month 1/12 of that year’s sales. </li></ul><ul><li>OM is expected to make or provide in any given hour one hour’s worth of that day’s scheduled output. </li></ul>