INTRODUCTION TO OPERATIONS MANAGEMENT

WHAT IS OPERATIONS MANAGEMENT

The design, operation, and improvement of the systems that create and deliver the
firms primary products and services.
Operations = Add Value
Management = Get Results
WHY STUDY OPERATIONS MANAGEMENT
Its EverywhereAt Work, At Home,
MY COURSE OBJECTIVES (FOR YOU)
nderstand the importance of Operations, and !here it fits in the contemporary
"usiness organi#ation
$ependent Relationships
%earn analytical tools and techni&ues, and !hen they apply
Most are tried and true
%earn a'out current issues and approaches to OM
Operations Management (age )
*ntroduction
Operations
Management
"usiness +ducation
,ystematic Approach
to Org. (rocesses
-areer Opportunities
-ross./unctional
Applications
Operations
Management
"usiness +ducation "usiness +ducation
,ystematic Approach
to Org. (rocesses
,ystematic Approach
to Org. (rocesses
-areer Opportunities -areer Opportunities
-ross./unctional
Applications
-ross./unctional
Applications
THE KEY QUESTIONS
0hat do !e need1 Demand
0hat do !e have 1 Inventory, Production Capacity
0hat do !e need to ma2e 1 Output
0hen do !e need it 1 ime
What !esu"ts, and What Priorities
What Do We Do #e$t%%
A SYSTEMS VIEWTHE SUPPLY CHAIN

Operations Management (age 3
*ntroduction
KEY PERFORMANCE INDICATORS
+fficiency 1 Resources sed 4*nput5
+ffectiveness 1 Results Achieved 4Output5
(roductivity = Output 6 *nput, or +ffectiveness6+fficiency
PRODUCTION SYSTEMS
A user of Resources to Transform *nputs into some desired Outputs 4of value to
someone7prefera'ly the -ustomer5
Types of Transformation (rocesses8
(hysical .. manufacturing
%ocation .. transportation
+9change .. retailing
,torage .. !arehousing
(hysiological .. healthcare
*nformational .. telecommunications
GOODS VS. SERVICES
Tangi'le vs. *ntangi'le
,ervice cannot 'e stored, shipped, o!nership transferred
More time and location dependent
-ustomer is directly involved in creating the service
ncertainty, varia'ility
Operations Management (age :
*ntroduction
HISTORICAL OVERVIEW OF OPERATIONS MANAGEMENT
);)) /rederic2 Taylor 1 <father of
scientific management=
/ormali#ed time study and !or2 study
);)) /ran2 > %illian Gil'reth Motion study 4photography5 and methods
analysis
);): ?enry /ord Moving assem'ly line
);:@s +lton Mayo 1 ?a!thorne studies
of motivation
-hange is not as important as ho! it is
introduced
00 ** Operations Research Mathematical models for military logistics
4simulation, linear programming5
);A@s -omputers 1 faster and more
!idespread use
MR( 4Material Re&uirements (lanning5
and increased use of math modeling
);B@s TC- 1 0. +d!ards $eming,
Doseph Duran
,tatistical and managerial approaches to
Cuality
);B@s D*T 4Dust.in.Time5 concepts +liminate !aste 1 $ont ma2e it unless you
need it
);;@s TCM 4Total Cuality Management5 -ompany.!ide commitment to CualityE
*,O, "aldrige A!ard
);;@s "usiness (rocess Reengineering,
,upply -hain Management
Radical changes
-omprehensive systems vie!
3@@@s +lectronic -ommerce
CHALLENGES TO OPERATIONS MANAGEMENT
+9ternal8
Must 'e responsive to demand 4!hich is unpredicta'le5
Glo'al competition
Glo'al supplier, production, distri'ution net!or2s
Technology e9plosion
*nternal8
(otential conflicts !ith Mar2eting, /inance, et.al.
Operations not al!ays seen as competitive factor
Feed to increase fle9i'ility, responsiveness, speed
+ver.present pressure to control6reduce costs
Operations Management (age G
*ntroduction