1. ProductionProduction
and Operationsand Operations
Management:Management:
Manufacturing andManufacturing and
ServicesServices
Chapter 1Chapter 1
Introduction to the FieldIntroduction to the Field
ChaseChase
AquilanoAquilano
JacobsJacobs
Tenth EditionTenth Edition
Irwin/McGraw-Hill©1 SEPTEMBER 2013
Prof. Dr. nurDin brasit , se., m
KomPleKs unhas bloK
eb/19
tamalanrea-maKassar
0411-585 084 ( home )
hP. 081 355 320345

2. 2
Chapter 1Chapter 1
Introduction to the FieldIntroduction to the Field
• Why Study Operations Management?Why Study Operations Management?
• Definition of Operations ManagementDefinition of Operations Management
• Operations Decision MakingOperations Decision Making
• Managing TransformationsManaging Transformations
• Service or Good?Service or Good?
• Core Factory ServicesCore Factory Services

3. 3
Why Study OperationsWhy Study Operations
Management?Management?
Operations
Management
Business Education
Systematic Approach
to Org. Processes
Career Opportunities
Cross-Functional
Applications

4. 4
Operations ManagementOperations Management
DefinitionDefinition
Operations managementOperations management may bemay be
defined as thedefined as the designdesign,, operationoperation, and, and
improvementimprovement of theof the production systemproduction system
that creates the firm’s primarythat creates the firm’s primary productsproducts
andand servicesservices..

5. 5
Operations Decision MakingOperations Decision Making
Marketplace
Corporate Strategy
Operations Strategy
Operations Management
Marketing StrategyFinance Strategy
People Plants Parts Processes
Planning and Control
Production System
Materials &
Customers
Input
Products &
Services
Output

6. 6
OM Involves ManagingOM Involves Managing
TransformationsTransformations
Input Output
• PeoplePeople
• PlantsPlants
• PartsParts
• ProcessesProcesses
• Planning andPlanning and
ControlControl
Transformation
Process
(Value Adding)
Transformation is
enabled by The 5 Ps of OM:

7. 7
TransformationsTransformations
• Physical--manufacturingPhysical--manufacturing
• Locational--transportationLocational--transportation
• Exchange--retailingExchange--retailing
• Storage--warehousingStorage--warehousing
• Physiological--health carePhysiological--health care
• Informational--telecommunicationsInformational--telecommunications

8. 8
Service or Good?Service or Good?
• ““If you drop it on your foot, it won’t hurtIf you drop it on your foot, it won’t hurt
you.” (Good oryou.” (Good or serviceservice?)?)
• ““Services never include goods and goodsServices never include goods and goods
never include services.” (never include services.” (TrueTrue or false?)or false?)

9. 11
Core “Factory Services”Core “Factory Services”
• QualityQuality
• FlexibilityFlexibility
• SpeedSpeed
• Price (or production cost)Price (or production cost)

10. 12
Value-Added Factory ServicesValue-Added Factory Services
• InformationInformation
• Problem SolvingProblem Solving
• Sales SupportSales Support
• Field SupportField Support