Operations management involves transforming inputs such as materials, people, energy, and information into products and services through organizational processes. It consists of planning, organizing, directing, and controlling these transformational processes. The operations function manages a large cost center and plays a key role in an organization's short- and long-term management and strategic contribution. Recent trends in operations management include an increased focus on flexibility, time reduction, technology, environmental issues, supply-chain management, and lean production principles.
Operations management involves transforming inputs such as materials, people, energy, and information into products and services through organizational processes. It consists of planning, organizing, directing, and controlling these transformational processes. The operations function manages a large cost center and plays a key role in an organization's short- and long-term management and strategic contribution. Recent trends in operations management include an increased focus on flexibility, time reduction, technology, environmental issues, supply-chain management, and lean production principles.
Operations management involves transforming inputs such as materials, people, energy, and information into products and services through organizational processes. It consists of planning, organizing, directing, and controlling these transformational processes. The operations function manages a large cost center and plays a key role in an organization's short- and long-term management and strategic contribution. Recent trends in operations management include an increased focus on flexibility, time reduction, technology, environmental issues, supply-chain management, and lean production principles.
Operations management involves transforming inputs such as materials, people, energy, and information into products and services through organizational processes. It consists of planning, organizing, directing, and controlling these transformational processes. The operations function manages a large cost center and plays a key role in an organization's short- and long-term management and strategic contribution. Recent trends in operations management include an increased focus on flexibility, time reduction, technology, environmental issues, supply-chain management, and lean production principles.
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Introduction to
Operations Management “ ⊷ Operations management – the activities, responsibilities and decisions that make up the task of managing of the process of transforming inputs such as materials, people, energy and information into services and products Figure 1.1
The management of systems or processes
that create goods and/or provide services
Organization
Finance Operations Marketing
Figure 1.2 The difference between the cost of inputs and the value or price of outputs. Value added Inputs Transformation/ Outputs Land Conversion Goods Labor process Services Capital Feedback
Control Feedback Feedback Industrial Engineering Maintenance Distribution
Purchasing Public Operations Relations
Legal Personnel
Accounting MIS Figure 1.3
Steel production Home remodeling Auto Repair Maid Service Teaching
goods goods Low percentage High percentage service service Table 1.2
Inputs Processing Outputs
Raw Vegetables Cleaning Canned Metal Sheets Making cans vegetables Water Cutting Energy Cooking Labor Packing Building Labeling Equipment Table 1.2
Inputs Processing Outputs
Doctors, nurses Examination Healthy
Hospital Surgery patients Medical Supplies Monitoring Equipment Medication Laboratories Therapy Production of Goods vs. Delivery of Services
⊷ Production of goods – tangible output ⊷ Delivery of services – an act ⊷ Service job categories ⊶ Government ⊶ Wholesale/retail ⊶ Financial services ⊶ Healthcare ⊶ Personal services ⊶ Business services ⊶ Education Key Differences
1. Customer contact 2. Uniformity of input 3. Labor content of jobs 4. Uniformity of output 5. Measurement of productivity 6. Production and delivery 7. Quality assurance 8. Amount of inventory ⊷ The operations function ⊶ Consists of all activities directly related to producing goods or providing services ⊷ The operations manager ⊶ He or she has the ultimate responsibility for the creation of goods or provision of services ⊷ Factors affecting the complexity of operations function: ⊶ The size of an organization and associated service/product volumes ⊶ The nature of the services and products provided ⊶ The technology levels embodied in both the services/products involved and the processes used within the operations function ⊶ The extent to which the services and products are made in-house Table 1.6 Planning Organizing – Capacity – Degree of centralization – Location – Process selection – Products & services Staffing – Make or buy – Hiring/laying off – Layout – Use of Overtime – Projects Directing – Scheduling – Incentive plans Controlling/Improving – Issuance of work orders – Inventory – Job assignments – Quality – Costs – Productivity ⊷ The role of the operations manager ⊶ Managing a large cost center ⊶ Managing the short and long term ⊶ Managing strategic contribution ⊶ Managing technology ⊶ Coordinating the whole ⊶ Using the common denominators of time and money ⊶ Managing the process through people ⊷ The role of the operations manager ⊶ Linking the thinking and doing ends of a business ⊶ Managing complexity Recent Trends 1. Global marketplace 2. Operations strategy 3. Total quality management 4. Flexibility 5. Time reduction 6. Technology 7. Worker involvement 8. Reengineering Recent Trends 9. Environmental issues 10. Corporate downsizing 11. Supply-chain management 12. Lean production “ End.
