Chap001
-
Upload
soumyaparhi -
Category
Business
-
view
1.691 -
download
0
description
Transcript of Chap001
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
1
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
2
Chapter 1
Introduction to the Field
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
3
Operations Management Why Study Operations Management? Transformation Processes Defined Operations as a Service The Importance of Operations
Management Historical Development of OM Current Issues in OM
OBJECTIVES
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
4
What is Operations Management?Defined
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
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
5
Why Study Operations Management?
Business Education
Systematic Approach to Org. Processes
Career Opportunities
Cross-Functional Applications
OperationsManagement
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
6
What is a Transformation Process?
Defined A transformation process is defined
as a user of resources to transform inputs into some desired outputs
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
7
Transformations
Physical--manufacturing
Locational--transportation
Exchange--retailing
Storage--warehousing
Physiological--health care
Informational--telecommunications
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
8
What is a Service and What is a Good?
“If you drop it on your foot, it won’t hurt you.” (Good or service?)
“Services never include goods and goods never include services.” (True or false?)
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
9
OM in the Organization Chart
OperationsOperations
Plant Manager
Plant Manager
OperationsManager
OperationsManager
DirectorDirector
Manufacturing, Production control, Quality assurance, Engineering,
Purchasing, Maintenance, etc
Manufacturing, Production control, Quality assurance, Engineering,
Purchasing, Maintenance, etc
Finance Marketing
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
10
Core services are basic things that customers want from products they purchase
Core ServicesDefined
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
11
Core Services Performance Objectives
OperationsManagemen
t
Flexibility
Quality
Speed
Price (or cost Reduction)
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
12
Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way
Value-Added ServicesDefined
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
13
Value-Added Service Categories
OperationsManagement
Information
Problem Solving
Sales Support
Field Support
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
14
The Importance of Operations Management
Synergies must exist with other functional areas of the organization
Operations account for 60-80% of the direct expenses that burden a firms profit.
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
15
Historical Development of OM JIT and TQC
Manufacturing Strategy Paradigm
Service Quality and Productivity
Total Quality Management and Quality Certification
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
16
Historical Development of OM (cont’d)
Business Process Reengineering
Supply Chain Management
Electronic Commerce
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
17
Current Issues in OM
Coordinate the relationships between mutually supportive but separate organizations.
Optimizing global supplier, production, and distribution networks.
Increased co-production of goods and services
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
18
Current Issues in OM (cont’d)
Managing the customers experience during the service encounter
Raising the awareness of operations as a significant competitive weapon
©The McGraw-Hill Companies, Inc., 2006
19
End of Chapter 1