Operations Management
Operations Management
Operations Management
Operations Management
Production
Creation of goods and services
Operations Management
Operations management
Set of Activities that create value in the form of goods & services through the transformation of
inputs to outputs
Operations Management is:
The management of systems or processess that create goods and /or provide services
Organizations
Three basic functions
Operations
Finance
Marketing
Transformation
Value Added
INPUT
Land Labor Capital Information
OUTPUT
TRANSFORMATION Goods Services
Feedback
Control
Feedback
Feedback
Operations Interfaces
Industrial Engineering
Maintenance
MIS
Distribution
Operations
Public Relations
Purchasing
Personnel
Accounting
Exchange -- retailing
Storage -- warehousing Physiological -- health care Informational -- telecommunications
Operations
Teller Scheduling Check Clearing Collection Transaction Processing Facilities design/layout Vault operation Maintenance Security
Finance
Investment Securities Real Estate
Marketing
Loans
Commercial Industrial Financial Personal Mortgage
Accounting
Auditing
Trust Department
Operations
Ground Support Equipment Maintenance Ground Operations Facility maintenance Catering Flight operations Crew Scheduling Flying Communications Dispatching
Finance/Accounting
Accounting Accounts payable Accounts Receivable General Ledger Finance Cash Control International exchange
Marketing
Traffic Administration
Reservation Schedules Tariffs(pricing) Sales Advertising
Manufacturing
Operations
Facility construction & maintenance Production & Inventory Control Scheduling, material control Quality assurance & control Supply-chain management Manufacturing Tooling, fabrication, assembly design. Product development & design Detailed product specifications Industrial engineering Efficient use of machines, space and personal Process Analysis Development & installation of production tools and equipment
Finance/Accounting
Disbursement/Credits Accounts payable Accounts Receivable General Ledger Fund Management Money Market International exchange Capital requirements Stock issue Bond issue & recall
Marketing
Sales Promotion
Sales Advertising Market Research
F. W. Taylor
Henry Ford
Types of Operations
Operations
Goods Producing Storage/Transportation
Examples
Farming, mining, construction, manufacturing, power generation Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines Retailing, wholesaling, banking, renting, leasing, library, loans Films, radio and television, concerts, recording Newspapers, radio and television newscasts, telephone, satellites
Exchange
Entertainment
Communication
Definitions of Services
Services are deeds, processes, and performances - Valarie A. Zeithaml and Mary Jo Bitner A service is an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interactions between customer and service employees and / or physical resources or goods and / or systems of the service provider, which are provided as solutions to customer problems. - Christian Gronroos
Characteristics of Services
Intangibility
Heterogeneity
Perishability
Usually Intangible Produced and consumed simultaneously Unique Customer interaction Inconsistent product definition Knowledge based Dispersed
Goods
Automobile
Services
Computer
Installed Carpet Fast food meal Restaurant meal/ Auto repair Hospital care Advertising agency/Investment management
Teaching/Consulting Services
Counseling
100
75
50
25
25
50
75
100
75
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50
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25
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0
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25
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50
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75
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100%
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Emerging Challenges in OM
From
Local or National focus Batch shipments
To
Global Focus Just in Time
Concept of Productivity
Productivity is the ratio of outputs (goods or services) divided by the inputs (resources, such as labor and capital) Operations Managers job is to enhance this ration of outputs to inputs.
Reducing inputs while keeping output constant
OR
Thank You