Chapter 1 Introduction to the Field
<ul><li>Operations Management </li></ul><ul><li>Why Study Operations Management? </li></ul><ul><li>Transformation Processe...
What is Operations Management? Defined <ul><li>Operations management (OM)  is defined as the design, operation, and improv...
Why Study Operations Management?   Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Fun...
What is a Transformation Process? Defined <ul><li>A  transformation process  is defined as a user of resources to transfor...
Transformations <ul><li>Physical--manufacturing </li></ul><ul><li>Locational--transportation </li></ul><ul><li>Exchange--r...
What is a Service and What is a Good? <ul><li>“ If you drop it on your foot, it won’t hurt you.” (Good or service?) </li><...
OM in the Organization Chart Operations Plant Manager Operations Manager Director Manufacturing, Production control, Quali...
Core services   are basic things that customers want from products they purchase Core Services Defined
Core Services Performance Objectives Operations Management Flexibility Quality Speed Price (or cost  Reduction)
Value-added services   differentiate the organization from competitors and build relationships that bind customers to the ...
Value-Added Service Categories Operations Management Information Problem Solving Sales Support Field Support
The Importance of Operations Management <ul><li>Synergies  must exist with other functional areas of the organization </li...
Historical Development of OM <ul><li>JIT and TQC </li></ul><ul><li>Manufacturing Strategy Paradigm </li></ul><ul><li>Servi...
Historical Development of OM (cont’d) <ul><li>Business Process Reengineering </li></ul><ul><li>Supply Chain Management </l...
Current Issues in OM <ul><li>Coordinate the relationships between mutually supportive but separate organizations. </li></u...
Current Issues in OM (cont’d) <ul><li>Managing the customers experience during the service encounter </li></ul><ul><li>Rai...
End of Chapter 1
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  • Chap001

    1. 2. Chapter 1 Introduction to the Field
    2. 3. <ul><li>Operations Management </li></ul><ul><li>Why Study Operations Management? </li></ul><ul><li>Transformation Processes Defined </li></ul><ul><li>Operations as a Service </li></ul><ul><li>The Importance of Operations Management </li></ul><ul><li>Historical Development of OM </li></ul><ul><li>Current Issues in OM </li></ul>OBJECTIVES
    3. 4. What is Operations Management? Defined <ul><li>Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services </li></ul>
    4. 5. Why Study Operations Management? Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications Operations Management
    5. 6. What is a Transformation Process? Defined <ul><li>A transformation process is defined as a user of resources to transform inputs into some desired outputs </li></ul>
    6. 7. Transformations <ul><li>Physical--manufacturing </li></ul><ul><li>Locational--transportation </li></ul><ul><li>Exchange--retailing </li></ul><ul><li>Storage--warehousing </li></ul><ul><li>Physiological--health care </li></ul><ul><li>Informational--telecommunications </li></ul>
    7. 8. What is a Service and What is a Good? <ul><li>“ If you drop it on your foot, it won’t hurt you.” (Good or service?) </li></ul><ul><li>“ Services never include goods and goods never include services.” (True or false?) </li></ul>
    8. 9. OM in the Organization Chart Operations Plant Manager Operations Manager Director Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc Finance Marketing
    9. 10. Core services are basic things that customers want from products they purchase Core Services Defined
    10. 11. Core Services Performance Objectives Operations Management Flexibility Quality Speed Price (or cost Reduction)
    11. 12. Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way Value-Added Services Defined
    12. 13. Value-Added Service Categories Operations Management Information Problem Solving Sales Support Field Support
    13. 14. The Importance of Operations Management <ul><li>Synergies must exist with other functional areas of the organization </li></ul><ul><li>Operations account for 60-80% of the direct expenses that burden a firms profit. </li></ul>
    14. 15. Historical Development of OM <ul><li>JIT and TQC </li></ul><ul><li>Manufacturing Strategy Paradigm </li></ul><ul><li>Service Quality and Productivity </li></ul><ul><li>Total Quality Management and Quality Certification </li></ul>
    15. 16. Historical Development of OM (cont’d) <ul><li>Business Process Reengineering </li></ul><ul><li>Supply Chain Management </li></ul><ul><li>Electronic Commerce </li></ul>
    16. 17. Current Issues in OM <ul><li>Coordinate the relationships between mutually supportive but separate organizations. </li></ul><ul><li>Optimizing global supplier, production, and distribution networks. </li></ul><ul><li>Increased co-production of goods and services </li></ul>
    17. 18. Current Issues in OM (cont’d) <ul><li>Managing the customers experience during the service encounter </li></ul><ul><li>Raising the awareness of operations as a significant competitive weapon </li></ul>
    18. 19. End of Chapter 1

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