Operation management refers to the process of transforming resources into finished goods. It is important for managers to understand operation management concepts to efficiently achieve organizational goals. There are two main types of organizations - manufacturing produces physical goods while service produces nonphysical services. Managing productivity and establishing a strategic role for operation management can help organizations maintain global leadership. Value chain management involves managing the activities and information across the entire process from raw materials to finished products to create value for customers. Current issues in managing operations include leveraging technology, focusing on quality initiatives like planning, organizing and controlling for quality, and enabling mass customization through lean processes.

1. OPERATION MANAGEMENT
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2. The Role Of Operation Management
 Operation Management : The term refers to the
transformation process that converts resources
into finished goods.

3. .
“Managers need to be familiar with OM concepts in order
to achieve goals efficiently and effectively”
A. Services & Manufacturing
 Manufacturing organizations - organizations that
produce physical goods.
 Service organizations - organizations that produce
nonphysical products in the form of services.
B. Managing Productivity
C. Strategic Role of Operation Management- Organizational
strategy to establish & maintain global leadership.

4. Value Chain Management/VCM
 Value - the performance
characteristics, features, attributes, and any other aspects
of goods and services for which customers are willing to
give up resources.
 Value chain - the entire series of organizational work
activities that add value at each step from raw materials
to finished product.
 Value chain management - the process of managing the
sequence of activities and information along the entire
value chain

5. of VCM
 Create value chain strategy that meets up and exceed
customer’s needs and desires and allows for full and
seamless integration among all members of the chain
 4 primary benefit of VCM
Improved procurement
Improved logistics
Improved product development
Enhanced customer order management

6. Value Chain Strategy

7.  Obstacles to Value Chain
Management
Note :
Organizational barriers
are the most difficult
obstacle to handle.

8. Current Issues in Managing Operations
 Technology’s role  Quality Initiatives
 Increased automation and
 Planning for quality
integration of production
facilities with business  Organizing and leading for
systems to control costs quality
 Predictive
 Controlling for quality
maintenance, remote
diagnostics, and utility  Mass Customization &
cost savings Lean Organization
 Quality - the ability of a
product or service to reliably
do what it’s supposed to do
and to satisfy customer
expectations
 Quality Goals