Introduction to Operation Management

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Introduction to Operation Management

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Introduction to Operation Management

  1. 1. Chapter 1 Overview: Introduction to the Field
  2. 2. <ul><li>Operations Management </li></ul><ul><li>Why Study Operations Management? </li></ul><ul><li>Production System Defined </li></ul><ul><li>Operations as a Service </li></ul><ul><li>Plan of This Book </li></ul><ul><li>Historical Development of OM </li></ul><ul><li>Current Issues in OM </li></ul>OBJECTIVES
  3. 3. What is Operations Management? Defined <ul><li>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 </li></ul>
  4. 4. Why Study Operations Management? Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications Operations Management
  5. 5. What is a Production System? Defined <ul><li>A production system is defined as a user of resources to transform inputs into some desired outputs </li></ul>
  6. 6. Transformations <ul><li>Physical--manufacturing </li></ul><ul><li>Locational--transportation </li></ul><ul><li>Exchange--retailing </li></ul><ul><li>Storage--warehousing </li></ul><ul><li>Physiological--health care </li></ul><ul><li>Informational--telecommunications </li></ul>
  7. 7. What is a Service and What is a Good? <ul><li>“ If you drop it on your foot, it won’t hurt you.” (Good or service?) </li></ul><ul><li>“ Services never include goods and goods never include services.” (True or false?) </li></ul>
  8. 8. OM in the Organization Chart Operations Plant Manager Operations Manager Director Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc Finance Marketing
  9. 9. Core services are basic things that customers want from products they purchase Core Services Defined
  10. 10. Core Services Performance Objectives Operations Management Flexibility Quality Speed Price (or cost Reduction)
  11. 11. 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
  12. 12. Value-Added Service Categories Operations Management Information Problem Solving Sales Support Field Support
  13. 13. Plan of This Book I. Operations Strategy and Managing Change 1. Introduction to the Field 2. Operations Strategy and Competitiveness 3. Project Management III. Supply Chain Design 9. Supply Chain Strategy 10. Strategic Capacity Management 11. Just-in-Time and Lean Systems IV. Planning and Controlling the Supply Chain 12. Forecasting and Demand Management 13. Aggregate Sales and Operations Planning 14. Inventory Control 15. Materials Requirements Planning 8. Operations Consulting and Reengineering 16. Operations Scheduling II. Product Design and Process Selection 4. Process Analysis 5. Product Design and Process Selection -Manufacturing 6. Product Design and Process Selection -Services 7. Quality Management 17. Synchronous Manufacturing and Theory of Constraints
  14. 14. Historical Development of OM <ul><li>JIT and TQC </li></ul><ul><li>Manufacturing Strategy Paradigm </li></ul><ul><li>Service Quality and Productivity </li></ul><ul><li>Total Quality Management and Quality Certification </li></ul>
  15. 15. Historical Development of OM (cont’d) <ul><li>Business Process Reengineering </li></ul><ul><li>Supply Chain Management </li></ul><ul><li>Electronic Commerce </li></ul>
  16. 16. Current Issues in OM <ul><li>Effectively consolidating the operations resulting from mergers </li></ul><ul><li>Developing flexible supply chains to enable mass customization of products and services </li></ul><ul><li>Managing global supplier, production and distribution networks </li></ul><ul><li>Increased “commoditization” of suppliers </li></ul>
  17. 17. Current Issues in OM (cont’d) <ul><li>Achieving the “Service Factory” </li></ul><ul><li>Enhancing value added services </li></ul><ul><li>Making efficient use of Internet technology </li></ul><ul><li>Achieving good service from service firms </li></ul>
  18. 18. End of Chapter 1

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