operations and competitiveness , what do operations managers do , transformation process , operations function , operations management act , competitiveness and productivity , operations–oriented barriers to entry

1. Operations and
Competitiveness
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2. 1-2
What Do Operations
Managers Do?
 What is Operations?
 a function or system that transforms inputs into outputs of
greater value
 What is Operations Management ?
 Refers to the activity, decisions and responsibilities of
managing the resources which dedicated to the production
and delivery of products and services
 What is operations manager?
 Who are responsible for overseeing and managing the
resources that make up operations function.
 The operations function is also responsible for fulfilling
customer requests through the production and delivery of
product and services.

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 Physical: as in manufacturing operations
 Locational: as in transportation operations
 Exchange: as in retail operations
 Physiological: as in health care
 Psychological: as in entertainment
 Informational: as in communication
Transformation Process

4. 1-4
INPUT
•Material
•Machines
•Labor
•Management
•Capital
TRANSFORMATION
PROCESS
OUTPUT
•Goods
•Services
Feedback
Operations: A system or function that transform input into
output of greater value.

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Operations Function
 Operations
 Marketing
 Finance and
Accounting
 Human
Resources
 Outside
Suppliers

6. Operations Management
Activities
 Strategy
 Forecasting demand for product and Services
 Production Planning and Scheduling
 Ensuring Quality
 Product and Services
 Process and technology
 Facilities
 Project Management
 Managing Supply Chain

7. Operations Management Activities
 Strategy
 Strategy is a common vision that
unites an organization, provides
consistency in decisions and
keeps the organization moving in
the right direction

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Operations Management Activities
 Forecasting
demand for
product and
Services
 Provide accurate estimates of
demand to make product
decision.
 Forecasting involves different
methods and quantitative
techniques.

9. Operations Management Activities
 Production
Planning and
Scheduling
 Capacity and aggregate
Planning
 Inventory Management
 Enterprise resource
planning
 Just in time and Lean
production
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10. Operations Management Activities
 Ensuring
Quality
 Ensure statistical quality control,
improving customer service and
managing human resource.
 Topics involves Statistical
process control, Quality
Management, HRM in
Operations Management
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11. Operations Management Activities
 Product and
Services
 Converting customer
requirements to product or
service
 Determining the desired
level of quality
 Selecting Materials
 Evaluating production cost
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12. Operations Management Activities
 Process and
technology
 Create value for customer,
shareholder or society
 Coordinate function, people
and organizations
 Planning for acquiring
materials, determining job
skill, equipment and
technology required.
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13. Operations Management Activities
 Facilities  Process designed physically
and laid out in an effective
manner
 Product and service delivered
as efficient as possible.
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14. Operations Management Activities
 Project
Management
 Break down complex
processes
 Schedules activities
 Ensure project
completion time
 Project budget
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15. Operations Management Activities
 Managing
Supply
Chain
 Producing and delivering a
product or service from
supplies to the customer.
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16. 1-16
Operations Management
and E-Business
Categories of E-Commerce
BusinessConsumer
Business Consumer
B2B
Commerceone.com
B2C
Amazon.com
C2B
Priceline.com
C2C
eBay.com

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Competitiveness and
Productivity
 Competitiveness
 degree to which a nation can produce goods and
services that meet the test of international
markets
 Productivity
 ratio of output to input
 Output
 sales made, products produced, customers
served, meals delivered, or calls answered
 Input
 labor hours, investment in equipment, material
usage, or square footage

18. Operations–Oriented Barriers to Entry
 Economies of Scale
 Capital Investment
 Access to Supply and Distribution
Channels
 Learning Curve
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19. 1-19
Measures of Productivity
Competitiveness and
Productivity (cont.)