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    OPERATIONSMANAGEMENTLECTURE 1

    INTRODUCTION TO THE TOPICJIM MATTHEWS

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    Learning Objectives

    By the end of this lecture you should be able to:

    explain the term Operations Management;

    describe how Operations Management has evolvedsince the start of the 20th century;

    outline the main sources of environmental

    management pressures on operations managers; appreciate why an understanding of international

    operations is of increasing importance to operationsmanagers.

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    Introduction Everything we come into contact with during a

    normal day has been delivered to us by an

    operation All organizations operate in an environment of

    increasing complexity and global competition

    Any organization can take a set of inputs, and

    given unlimited time and resources, produceuseful outputs

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    What isOperations Management? 1Operations management is concerned with

    creating, operating and controlling a

    transformation system that takes inputs of

    a variety of resources and produces

    outputs of goods and services needed by

    customers

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    What isOperations Management? 2 Inputs

    A Transformation System

    Outputs

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    Operations withinthe organization The contribution and the value-adding

    role of operations management

    The core functions are supported byother functions

    Excellence in Operations Management

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    The evolution ofOperations Management

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    The production era

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    The sales era

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    The marketing era

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    Reasons for recent changesin operations management The last two decades of the 20th century

    brought about enormous changes in the

    consumer market

    This increased competition has placed

    immense pressure on the operationsfunctions

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    Changing terminology Factory Management

    Works Management

    Manufacturing Management

    Production Management

    Operations Management

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    Activities of theOperations Manager Product/service design function

    Marketing function

    Human Resource function

    Finance/accounting function

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    Volume, variety, variationand visibility the volume of their output;

    the variety of their output;

    the variation of their output;

    the visibility which customers have of theprocesses

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    Environmental issues

    Government Legislation and Regulations

    Public Opinion

    Financial Pressures

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    Government legislationand regulations Maintenance of high and stable levels of

    economic growth and employment

    Effective protection of the environment

    Prudent use of natural resources

    Social progress which meets the needs ofeveryone

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    SEPA

    activities that may pollute water;

    activities that may pollute air;

    storage, transport and disposal of waste;

    keeping and disposal of radioactivematerials.

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    European Union

    legislation

    Product life cycle

    End of life vehicle directive

    Waste electrical and electronicequipment directive

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    Public opinion Consumers

    Shareholders Business partners

    Employees

    The Community

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    Financial pressures

    reducing costs

    cost of waste disposal

    environmental track record

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    The environmentaltechnology sector Environmental Auditing and Consultancy

    Air pollution control

    Water and sewage effluent treatment

    Measuring, control and analysisequipment

    Soil remediation and site clean-up

    Marine pollution control

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    International operationsYou do not choose to become global. The

    market chooses you; it forces your hand.

    There are no impediments to world-wide

    distribution. We must have an organization

    that can install and move the links of the

    business chain to any part of the world

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    Summary