operations management

1. INTRODUCTION TO
OPERATIONS MANAGEMENT

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OPERATIONS MANAGEMENT IS:
The business function responsible for planning, coordinating, and
controlling the resources needed to produce products and services
for a company

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OPERATIONS MANAGEMENT IS:
• A management function
• An organization’s core function
• In every organization whether Service or Manufacturing, profit or Not
for profit

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TYPICAL ORGANIZATION CHART

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WHAT IS ROLE OF OM?
• OM Transforms inputs to outputs
• Inputs are resources such as
• People, Material, and Money
• Outputs are goods and services

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OM’S TRANSFORMATION PROCESS

7. Transformation Process of a
Canned Food Processor
Inputs Processing Outputs
• Cleaning Canned
vegetables
• Making cans
• Cutting
• Cooking
• Packing
• Labeling
• Raw vegetables
• Metal sheets
• Water
• Energy
• Labor
• Building
• Equipment

8. Transformation Process of a Hospital
Inputs Processing Outputs
• Doctors, nurses • Examination Healthy
patients
• Hospital • Surgery
• Medical Supplies • Monitoring
• Equipment • Medication
• Laboratories • Therapy

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OM’S TRANSFORMATION ROLE
• To add value
• Increase product value at each stage
• Value added is the net increase between output product value
and input material value
• Provide an efficient transformation
• Efficiency – means performing activities well for least possible
cost

10. Examples of Various Operations
Operations Examples
Goods Producing Farming, mining, construction ,
manufacturing, power generation
Storage/
Transportation
Warehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange Retailing, wholesaling, banking,
renting, leasing, library, loans
Entertainment Films, radio and television,
concerts, recording
Communication Newspapers, radio and television
newscasts, telephone, satellites

11. Activity 1
Define the purpose of the OM in an
organization. (5pts)
 list down the Input – Transformation
process – output of your selected
organization. (20 pts)
Based on your given organization list
down 5 OM’s role in the
transformation process. (10 pts)