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    Introduction To Production and Operations Management

    Uploaded by

    Jehad Mahmood
    This document introduces operations management. It defines operations management as managing the processes that create goods and services. It discusses the differences between manufacturing and service operations. It also explains key concepts in operations management including value addition, goods-services continuum, and the nature of operations managers' work. The document outlines several learning objectives and trends in business and operations management.

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    Introduction To Production and Operations Management

    Uploaded by

    Jehad Mahmood
    81 views20 pages
    This document introduces operations management. It defines operations management as managing the processes that create goods and services. It discusses the differences between manufacturing and service operations. It also explains key concepts in operations management including value addition, goods-services continuum, and the nature of operations managers' work. The document outlines several learning objectives and trends in business and operations management.

    Original Description:

    Original Title

    Stevenson Chapter 1

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    This document introduces operations management. It defines operations management as managing the processes that create goods and services. It discusses the differences between manufacturing and service operations. It also explains key concepts in operations management including value addition, goods-services continuum, and the nature of operations managers' work. The document outlines several learning objectives and trends in business and operations management.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    81 views20 pages

    Introduction To Production and Operations Management

    Uploaded by

    Jehad Mahmood
    This document introduces operations management. It defines operations management as managing the processes that create goods and services. It discusses the differences between manufacturing and service operations. It also explains key concepts in operations management including value addition, goods-services continuum, and the nature of operations managers' work. The document outlines several learning objectives and trends in business and operations management.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    1

    Introduction to
    Production and
    Operations
    Management
    Learning Objectives
     Define the term operations management
     Basics of “Value Addition”
     Compare and contrast service and
    manufacturing operations
     Basics of “Goods-Services Continuum”
     Describe the operations function and the
    nature of the operations manager’s job
     Describe the key aspects of operations
    management decision making
    1-2
    Operations Management
     Managing that part of the organization responsible for
    producing goods and services
     Management of systems or processes that create
    goods and/or provide services
    Operations Examples
    Goods Producing Farming, mining, construction manufacturing, power
    generation
    Storage/Transport Warehousing, trucking, mail service, moving, taxis,
    ation buses, hotels, airlines
    Exchange Retailing, wholesaling, banking, renting, leasing, library,
    loans
    Entertainment Films, radio and television, concerts, recording
    Communication Newspapers, radio and television, newscasts, telephone,
    satellites
    1-3
    The Organization
    The Three Basic Functions

    Competitiveness?

    1-4
    Value-Added Process
    The operations function involves the conversion of
    inputs into outputs

    Value-added = Value or price of outputs – Cost of inputs


    1-5
    Value-Added Process

    The operations function involves the conversion of


    inputs into outputs
    Value added
    Inputs
    Transformation/ Outputs
    Land
    Conversion Goods
    Labor
    process Services
    Capital
    Feedback

    Control
    Feedback Feedback

    1-6
    Food Processor
    Inputs Processing Outputs

    Raw Vegetables Cleaning Canned vegetables


    Metal Sheets Making cans Scraps!
    Water Cutting
    Energy Cooking
    Labor Packing
    Building Labeling
    Equipment

    Hospital Process
    Inputs Processing Outputs

    Doctors, nurses Examination


    Hospital Surgery
    Medical Supplies Monitoring Healthy patients
    Equipment Medication
    Laboratories Therapy

    1-7
    Value-Added & Product Packages
     Value-added is the difference between the
    cost of inputs and the value or price of
    outputs.
     Product packages are a combination of
    goods and services.
     Product packages can make a company
    more competitive.

    1-8
    Goods-service Continuum
    Tangible Act

    Goods Service

    Surgery, teaching

    Song writing, software development

    Computer repair, restaurant meal

    Automobile Repair, fast food


    Smart phones:
    Home remodeling, retail sales Product/Service?

    Automobile assembly, steel making

    Product packages = Good(s) + service(s)


    Make a company more competitive- more value to customers
    1-9
    Production of Goods vs. Delivery of Services

     Production of goods – tangible output,


    production oriented
     Delivery of services – an act
     Service job categories
     Government
     Wholesale/retail
     Financial services
     Healthcare
     Personal services
     Business services
     Education
    1-10
    Goods vs Service: Key Differences
    Characteristic Goods Service
    Customer contact Low High
    Uniformity of input High Low
    Labor content Low High
    Uniformity of output High Low
    Output Tangible Intangible
    Measurement of productivity Easy Difficult
    Opportunity to correct problems High Low
    Inventory Much Little
    Evaluation Easier Difficult
    Patentable Usually Not usual

    1-11
    Challenges of Managing Services
     Service jobs are often less structured than
    manufacturing jobs
     Customer contact is higher
     Worker skill levels are lower
     Services hire many low-skill, entry-level workers
     Employee turnover is higher
     Input variability is higher
     Service performance can be affected by worker’s
    personal factors

    1-12
    Scope of Operations Management
     Operations Management includes:
     Forecasting
     Capacity planning
     Scheduling
     Managing inventories
     Assuring quality
     Motivating employees
     Deciding where to locate facilities
     Supply chain management
     And more . . .
    1-13
    Key Decisions of Operations Managers
     What
    What resources/what amounts
     When
    Needed/scheduled/ordered
     Where
    Work to be done
     How
    Designed
     Who
    To do the work

    1-14
    Decision Making

    System Design System operation

    – capacity – personnel

    – location – inventory

    – scheduling
    – arrangement of departments

    – project
    – product and service planning
    management
    – acquisition and placement of
    – quality assurance
    equipment

    1-15
    Quantitative Approaches

    • Linear programming
    • Queuing Techniques
    • Inventory models
    • Project models
    • Statistical models

    1-16
    Analysis of Trade-Offs
     Decision on the
    amount of
    inventory to stock
     Increased cost of
    holding inventory
    Vs.
     Level of customer
    service

    1-17
    Systems Approach

    “The whole is greater than


    the sum of the parts.”

    Suboptimization

    1-18
    Trends in Business
     Major trends
     The Internet, e-commerce, e-business
     Management technology
     Globalization
     Management of supply chains
     Outsourcing
     Agility
     Ethical behavior

    1-19
    Other Important Trends
     Ethical behavior
     Operations strategy
     Working with fewer resources
     Revenue management
     Process analysis and improvement
     Increased regulation and product liability
     Lean production
     Combination of Mass Production (high volume, low
    unit cost) and Craft Production (variety and Flexibility)

    1-20

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