Operations and
Competitiveness
1-1
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.
1-3
 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
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.
1-5
Operations Function
 Operations
 Marketing
 Finance and
Accounting
 Human
Resources
 Outside
Suppliers
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
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
1-8
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.
Operations Management Activities
 Production
Planning and
Scheduling
 Capacity and aggregate
Planning
 Inventory Management
 Enterprise resource
planning
 Just in time and Lean
production
1-9
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
1-10
Operations Management Activities
 Product and
Services
 Converting customer
requirements to product or
service
 Determining the desired
level of quality
 Selecting Materials
 Evaluating production cost
1-11
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.
1-12
Operations Management Activities
 Facilities  Process designed physically
and laid out in an effective
manner
 Product and service delivered
as efficient as possible.
1-13
Operations Management Activities
 Project
Management
 Break down complex
processes
 Schedules activities
 Ensure project
completion time
 Project budget
1-14
Operations Management Activities
 Managing
Supply
Chain
 Producing and delivering a
product or service from
supplies to the customer.
1-15
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
1-17
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
Operations–Oriented Barriers to Entry
 Economies of Scale
 Capital Investment
 Access to Supply and Distribution
Channels
 Learning Curve
1-18
1-19
Measures of Productivity
Competitiveness and
Productivity (cont.)

Operation and competitiveness

  • 1.
  • 2.
    1-2 What Do Operations ManagersDo?  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.
  • 3.
    1-3  Physical: asin 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.
  • 5.
    1-5 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
  • 8.
    1-8 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 1-9
  • 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 1-10
  • 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 1-11
  • 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. 1-12
  • 13.
    Operations Management Activities Facilities  Process designed physically and laid out in an effective manner  Product and service delivered as efficient as possible. 1-13
  • 14.
    Operations Management Activities Project Management  Break down complex processes  Schedules activities  Ensure project completion time  Project budget 1-14
  • 15.
    Operations Management Activities Managing Supply Chain  Producing and delivering a product or service from supplies to the customer. 1-15
  • 16.
    1-16 Operations Management and E-Business Categoriesof E-Commerce BusinessConsumer Business Consumer B2B Commerceone.com B2C Amazon.com C2B Priceline.com C2C eBay.com
  • 17.
    1-17 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 toEntry  Economies of Scale  Capital Investment  Access to Supply and Distribution Channels  Learning Curve 1-18
  • 19.