1n New Intro

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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

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