Operations Management For Competitive...
Transcript of Operations Management For Competitive...
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Islamic University of Gaza - Palestine
Department of Industrial Engineering
Assistant Prof. Abed Schokry
Integrated Production Systems
First Semester 2011- 2012
Islamic University of Gaza - Palestine
Operations Management For CompetitiveAdvantage
CHASE AQUILANO JACOBS
McGraw Hill Higher Education, ninth edition
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Chapter 1
Introduction to Operations Management
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Chapter 1: Learning Outcomes
• You should be able to:
– Define the term operations management
– Compare and contrast service and manufacturing operations
– Describe the operations function and the nature of the operations manager’s job
– Identify the two major aspects of process management
– Describe the key aspects of operations management decision making
– Briefly describe the historical evolution of operations management
– Identify current trends in business that impact operations management
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Overview: Introduction to the Field
• Operations Management
• Why Study Operations Management?
• Production System Defined
• Operations as a Service
• Plan of This Book
• Historical Development of OM
• Current Issues in OM
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What is Operations Management?
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.
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What is Operations Management? (Cont.)
What is operation?
– The part of a business organization that is responsible for producing goods or services
• How can we define operations management?
– The management of systems or processes that create goods and/or provide services
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The Operations Function consists of all activities directly related to producing goods or providing services.
A primary function of the operations manager is to guide the system by decision making.
– System Design Decisions
– System Operation Decisions
Role of the Operations Manager
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Why Study Operations Management?
OperationsManagement
Business Education
Systematic Approachto Org. Processes
Career Opportunities
Cross-Functional Applications
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What is a Production System?
A production system is defined as a user of resources to
transform inputs into some desired outputs.
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Transformations
• Physical--manufacturing
• Locational--transportation
• Exchange--retailing
• Storage--warehousing
• Physiological--health care
• Informational--telecommunications
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Goods are physical items that include raw materials, parts, subassemblies, and final products.
• Automobile, Computer, Oven, Shampoo
Services are activities that provide some combination of time, location, form or psychological value.
• Air travel, Education, Haircut, Legal counsel
Good or Service?
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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?)
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Core services are basic things that customers want from products they purchase.
Core Services Definition
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Core Services Performance Objectives
OperationsManagement
Flexibility
Quality
Speed
Price (or cost Reduction)
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Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way.
Value-Added Services
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Value-Added Service Categories
OperationsManagement
Information
Problem Solving
Sales Support
Field Support
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I. Operations Strategy and Managing Change
1. Introductionto OM
2. Operations Strategy and Competitiveness
3. Project Management
III. SupplyChain Design
8. Supply Chain Strategy
9. Strategic Capacity Management
10. Just-in-Time Outsourcing and Lean Systems
IV. Planning and Controlling the Supply Chain
11. Forecasting
12. AggregatePlanning
V. Revisingthe System
13. InventoryControl
14. Materials Requirements
Planning 16. Consulting and Reengineering
17. Synchronous Manufacturing & Theory of Constraints
II. Product Designand Process
Selection
4. UnderstandingProcesses
5. Manufacturing
Product &Process Des.
6. ServiceProducts and
Process Design
7. QualityManagement
Pla
n o
f T
his
Bo
ok
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Historical Development of OM
• JIT and TQC.
• Manufacturing Strategy Paradigm.
• Service Quality and Productivity.
• Total Quality Management and Quality Certification.
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Historical Development of OM (cont’d)
• Business Process Reengineering.
• Supply Chain Management.
• Electronic Commerce.
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Current Issues in OM
• Effectively consolidating the operations resulting from mergers.
• Developing flexible supply chains to enable mass customization of products and services.
• Managing global supplier, production and distribution networks.
• Increased “commiditization” of suppliers.
• Achieving the “Service Factory”.
• Achieving good service from service firms.
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Scope of Operations Management
MIS: Management Information System
HRM: Human Resources Management
QA: Quality Assurance
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Why Manufacturing Matters
• Over 18 million workers in manufacturing jobs
• Accounts for over 70% of value of U.S. exports
• Average full-time compensation about 20% higher than average for all workers
• Manufacturing workers more likely to have benefits
• Productivity growth in manufacturing in the last 5 years is more than double that of the U.S. economy
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Why Study OM?
• Every aspect of business revolves around operations
• Many service jobs are closely related to operations– Financial services– Marketing services– Accounting services– Information services
• There is a significant amount of interaction and collaboration amongst the functional areas
• It provides an excellent vehicle for understanding the world in which we live
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Career Opportunities in OM
• Industrial engineer
• Operations manager
• Production manager
• Inventory manager
• Quality analyst and or Quality manager
• Production analyst
• And others
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OM-Related Professional Societies in USA
• APICS - The Association for Operations Management
• American Society for Quality (ASQ)
• Institute for Supply Management (ISM)
• Institute for Operations Research and Management Science (INFORMS)
• The Production and Operations Management Society (POMS)
• The Project Management Institute (PMI)
• Council of Supply Chain Management Professionals (CSCMP)
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Decision Making
• Most operations decisions involve many alternatives that can have quite different impacts on costs or profits
• Typical operations decisions include:
– What: What resources are needed, and in what amounts?
– When: When will each resource be needed? When should the work
be scheduled? When should materials and other supplies be
ordered?
– Where: Where will the work be done?
– How: How will he product or service be designed? How will the
work be done? How will resources be allocated?
– Who: Who will do the work?
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End of Chapter 1
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