Introduction To The Field Operation MGMT PDF

Slide 1
Chapter 1
Introduction to Production & Operation Management
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OBJECTIVES
Production & Operations Manag ement Why Study POM? Transformation Processes Defined Operationsas a Service The Importanceof Operations
Management
Historical Development of OM Current Issues in OM
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What is Operations Management? Defined

Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firms primary products and services Production & Operations Management Production manag ement is the processof planning , organizing, directingand controllingthe activitiesof the production function. Production functions are the conversion of raw materials into finished products
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What is Operations Management? Defined

Production & Operations Manag ement
Production manag ement is concerned with those processes which convert the inputs into outputs. The inputs are various resources like raw materials, men , machines etc. and the outputs are goods and services.
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Production System
Transformation Process:
Product Design Process Planning Production Control Maintenance

Inputs:
Men Material Machine Information Capital
Output:
Product Service
Continuous Feedback:
Inventory Quality Cost

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Production manag ement is concerned with those processes which convert the inputs into outputs.
Input Output Materials Labour Machines Energy Process Transformation Products Services Information
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Objectives of production management Objectives of production management are classified as under : (1 ) Ultimate Objectives (2) Intermediate Objectives
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Production & Operations Management

(1 ) Ultimate Objectives The primary or ultimate objective of the manufacturing activity is to produce a product at a pre-established cost, according to the specified quality and within the stipulated time schedule.
(2 ) Intermediate Objectives Control Information Social Responsibility Services
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Why Study Operations Management?

Systematic Approach to Org. Processes
Business Education
Operations Management
Career Opportunities
Cross-Functional Applications
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What is a Transformation Process? Defined

A transformation process 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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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 includegoods and g oods
never includeservices. (True or false?)
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POM in the Organization Chart

Finance Operations Marketing
Plant Manager
Operations Manager
Director
Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc

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Core Services Defined Core services are basic things that customers want from products they purchase
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Core Services Performance Objectives

Quality
Flexibility
Speed
Price (cost Reduction)
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Value-Added Services Defined Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way
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Value-Added Service Categories

Problem Solving
Information
Sales Support
Field Support
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The Im portance of P roduction & Operations Manag em ent
Synergies must exist with other
functional areas of the organization Operations account for 60-80% of the direct expenses that burden a firms profit.
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Historical Development of OM
JIT and TQC Manufacturing Strategy Paradigm Service Quality and Productivity Total Quality Manag ement and Quality Certification
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Historical Development of OM (contd)

Business Process Reengineering Supply Chain Manag ement Electronic Commerce
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Current Issues in OM
Coordinate the relationships between
mutuallysupportive but separate organizations.

Optimizingglobal supplier, production,
and distribution networks.

Increased co-production of g oods and
services
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Current Issues in OM (contd)

Managing the customers experience during theservice encounter Raising the awareness of operations as a significant competitive weapon
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Introduction To The Field Operation MGMT PDF

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Slide 1

What is Operations Management? Defined

What is Operations Management? Defined

Product Design Process Planning Production Control Maintenance

Men Material Machine Information Capital

Inventory Quality Cost

Production & Operations Manag ement

Production & Operations Manag ement

Production & Operations Management

Why Study Operations Management?

What is a Transformation Process? Defined

What is a Service and What is a Good?

Services never includegoods and g oods

never includeservices. (True or false?)

POM in the Organization Chart

Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc

Core Services Performance Objectives

Price (cost Reduction)

Value-Added Service Categories

The Im portance of P roduction & Operations Manag em ent

Synergies must exist with other

Historical Development of OM (contd)

mutuallysupportive but separate organizations.

and distribution networks.

Current Issues in OM (contd)

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