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OPERATIONS MANAGEMENT

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Presentation on theme: "OPERATIONS MANAGEMENT"— Presentation transcript:

Operations Management

OPERATIONS The term production and operations tend to be interchangeable today the main feature of operations is that there is an input, process, output.

Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 1-6 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle.

Introduction to Operations Management

J0444 OPERATION MANAGEMENT Operasi dan Produktivitas Pert 3 Universitas Bina Nusantara.

FHF Operations Management Historically called “production” or “manufacturing” where the focus was on methods to operate a factory “Operations” view the.

Topic 1. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT.

© 2008 Prentice Hall, Inc.1 – 1 Operations Management Chapter 1 – Operations and Productivity PowerPoint presentation to accompany Heizer/Render Principles.

Operations Management Operations and Productivity Chapter 1

Operations Management and Quality

1-1 Operations Management Introduction - Chapter 1.

Introduction to Production & Operations Management.

Operations Management Operations and Productivity A-Team

Chapter 1 Introduction to Operations Management. Three Functions in a Business Marketing – to “sell” products Operations – to “make” products Finance.

Operations and Service Management Chapter 21. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2 Operations and.

Chapter 11: Operations Management in Manufacturing and Service Industries Facility Layouts Managing the Production Process in a Manufacturing Company Graphical.

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Operations management involves utilizing resources from staff, materials, equipment, and technology. Operations managers acquire, develop, and deliver goods to clients based on client needs and the abilities of the company.

Operations management handles various strategic issues, including determining the size of manufacturing plants and project management methods and implementing the structure of information technology networks. Other operational issues include the management of inventory levels, including work-in-process levels and raw materials acquisition, quality control, materials handling, and maintenance policies.

Operations management entails studying the use of raw materials and ensuring minimal waste occurs. Operations managers utilize numerous formulas, such as the economic order quantity formula to determine when and how large of an inventory order to process and how much inventory to hold on hand.

A critical function of operations management relates to the management of inventory through the supply chain. To be an effective operations management professional, one must be able to understand the processes that are essential to what a company does and get them to flow and work together seamlessly. The coordination involved in setting up business processes in an efficient way requires a solid understanding of logistics. 

An operations management professional understands local and global trends, customer demand, and the available resources for production. Operations management approaches the acquisition of materials and the use of labor in a timely, cost-effective manner to deliver customer expectations. Inventory levels are monitored to ensure excessive quantities are on hand. Operations management is responsible for finding vendors that supply the appropriate goods at reasonable prices and have the ability to deliver the product when needed.

Another large facet of operations management involves the delivery of goods to customers. This includes ensuring products are delivered within the agreed time commitment. Operations management also typically follows up with customers to ensure the products meet quality and functionality needs. Finally, operations management takes the feedback received and distributes the relevant information to each department to use in process improvement.

Operations management is concerned with controlling the production process and business operations in the most efficient manner possible. Operations management professionals attempt to balance operating costs with revenue to maximize net operating profit.

This template will be useful for company leaders when preparing a company development strategy. Production managers can use this template when planning product releases. Project managers can detail timelines and milestones for new projects.

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Operations management Lecture 1

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Michelle Acuavera

Operations refer to the part of an organization that is responsible for producing goods and/or services. Goods are physical items inclusive of raw materials, parts, subassemblies such as the engine system used in a car, and final products such as computers and machineries. Services are activities that provide a combination of time, location form, and psychological value. There are examples of these goods and services all around you. INTENDED LEARNING OUTCOMES: 1. Define the term operations management 2. Identify the three major functional areas of organizations and describe how they interrelate 3. Identify similarities and differences between production and service operations 4. Describe the operations function and the nature of the operations manager's job 5. Summarize the two major aspects of process management 6. Explain the key aspects of operations management decision making 7. Briefly describe the historical evolution of operations management 8. Characterize current trends in business that impact operations management Basic Functions of the Business Organization Organization Marketing-responsible for assessing consumer needs and wants, and selling and promoting the organization's goods or services. Operations-responsible for producing the goods or providing the services offered by the organization. Finance-responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations.

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This paper suggests an organizational practice for strategic planning aimed at filling the gap between financial-oriented models conceived by researchers and real-life applications in field, where the need for a deep involvement of operations managers emerges as a key-issue. The proposed prac-tice is based on a model that considers strategic planning as a process triggered by the product cost structure, the product flow analysis and the supply chain. As a result, the focus of planning is shifted from the company's strategic apex to the personnel involved in operations management. After a review of the most popular approaches to strategic planning, the proposed model is introduced through a 6-step methodology and the competitive histograms are presented. Finally, the model is applied to the real-life case study of the European flexible packaging market.

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Purpose-The purpose of this paper is to examine the relationships of capacity/layout (CL), design (D), location, (L), hygiene (H), human resource management (HRM), food quality (FQ) and ambiance (A) in operations management strategies (OMS) and the direct and indirect effects of OMS on customer satisfaction (CS) and customer behavioral intentions (CBIs) that might affect income and, therefore, be influential regarding café-restaurants in Sulaimania in Iraq. Design/methodology/approach-Data are collected through a survey questionnaire using a simple random sampling methodology from 254 customers of 46 casual café-restaurants. Methodology includes demographic analysis, factor analysis, structural equation modeling and mediation analysis. Findings-Concerning relationships between structural and infrastructural elements of OMS, only CL and H influence HRM, D and H affect A, and H influences FQ. Regarding relationships between OMS and CS and CBIs, only L, HRM, FQ and A affect CS. Concerning the relationship between CS and CBIs, CS influences CBIs. Finally, given indirect effects of OMS on CS and CBIs, HRM mediates relationships between CL-CS and H-CS; FQ and A mediate relationships between H-CS; and CS mediates relationships between L-CBIs, FQ-CBIs and HRM-CBIs. Research limitations/implications-The study that treats seven variables in OMS is limited to Sulaimania in Iraq. Thus, the findings cannot be generalized. The study might guide future studies about the way OMS elements forge CS and CBIs in café-restaurants where owners/managers develop credible strategic plans. Originality/value-The study provides a unique insight into the hospitality industry in Iraq where studies among elements of OMS are few and far between.

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Operation Management is very important disciplined in production and service sector business to prosper. This paper discussed the three important strategic dimensions as design good services, quality management and supply chain management of the world giant digital company Microsoft Corporation. The study found that Microsoft has correctly handled the strategic areas of operation management and well manage them. Especially Microsoft used the right blend of human resources and advance technology for success especially artificial intelligence and industry 4.0. Microsoft processing strong strength areas such as the leader in the cloud business, highest global presence, a large number of product portfolios and brand equity are some strong area. To compare and contrast the 4Vs concept with Microsoft, the researcher has selected it is one of the closest competitor International Business Machines (IBM) corporation and found both of the performing very well in the industry having its individual culture and highly recognized their flagship brand due to own identity.

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Operations Management

Jul 11, 2014

400 likes | 1.42k Views

Operations Management. Week 01. Outline. Operations & Operations Management (OM) Process Management Scope of OM OM & Decision Making. Learning Outcomes. At the end of this session, the students should be able to; Define the terms “operations management”

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• product supply chain
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Presentation Transcript

Operations Management Week 01 Adapted from Operations Management by William J. Stevenson

Outline • Operations & Operations Management (OM) • Process Management • Scope of OM • OM & Decision Making Adapted from Operations Management by William J. Stevenson

Learning Outcomes At the end of this session, the students should be able to; • Define the terms “operations management” • Describe the operations function and the nature of operations manager’s job • Summarize the two major aspects of process management • Explain the key aspects of operations management decision making Adapted from Operations Management by William J. Stevenson

Operations & OM • Operations is part of a business organization that is responsible for producing goods or services • OM can be defined as the management of systems or processes that create goods and/or provide services • OM and supply chain are intrinsically linked Adapted from Operations Management by William J. Stevenson

Supply Chain • Supply chain (external as well as internal) is a sequence of activities and/or organizations involved in producing and delivering a good or service which begins with basic suppliers of raw materials and extends all the way to the final customer • The external parts of a supply chain provide raw materials, parts, equipment, supplies, and/or other inputs to the organization, and they deliver outputs that are goods to the organization’s customers • The internal parts of a supply chain are part of the operations function itself, supplying operations with parts and materials, performing work on products and/or services, and passing the work on to the next step in the process Adapted from Operations Management by William J. Stevenson

Product Supply Chain Adapted from Operations Management by William J. Stevenson

Transformation Process • The creation of goods or services involves transforming or converting inputs into outputs • Various inputs such as capital, labor, and information are used to create goods or services using one or more transformation processes (e.g., storing, transporting, repairing) • To ensure that the desired outputs are obtained, an organization takes measurements at various points in the transformation process ( feedback ) and then compares them with previously established standards to determine whether corrective action is needed ( control ) Adapted from Operations Management by William J. Stevenson

Transformation Process Adapted from Operations Management by William J. Stevenson

Transformation Process; Examples Adapted from Operations Management by William J. Stevenson

Value Added in Transformation Process • The essence of the operations function is to add value during the transformation process • Value-added is the term used to describe the difference between the cost of inputs and the value or price of outputs • The value of outputs is measured by the prices that customers are willing to pay for those goods or services Adapted from Operations Management by William J. Stevenson

Goods vs. Services Adapted from Operations Management by William J. Stevenson

Process Management • A key aspect of OM is process management • A process consists of one or more actions that transform inputs into outputs • Business processes are of following types; • Upper-management processes. These govern the operation of the entire organization, e.g., organizational governance and organizational strategy 2. Operational processes. These are the core processes that make up the value stream, e.g., purchasing, production and/or service, marketing, and sales 3. Supporting processes. These support the core processes, e.g., accounting, human resources, and IT (information technology) Adapted from Operations Management by William J. Stevenson

Process Management • A major process can consist of many sub-processes, each having its own goals that contribute to the goals of the overall process • Business process management (BPM) activities include process design, process execution, and process monitoring • Two basic aspects of process management are; • Managing a process to meet demand • Process variation Adapted from Operations Management by William J. Stevenson

Process Management • Managing a process to meet demand • Ideally , capacity of a process = demand • Excess capacity is wasteful and costly • Low capacity leads to dissatisfaction and revenue loss • Right capacity requires; • Accurate forecasts • Ability to translate forecasts into capacity requirements • process in place capable of meeting expected demand Adapted from Operations Management by William J. Stevenson

Process Management • Process variation: Variation occurs in all business processes and the four basic sources are; 1. The variety of goods or services being offered. The greater the variety of goods and services, the greater the variation in production or service requirements. 2. Structural variation in demand. These variations, which include trends and seasonal variations, are generally predictable. They are particularly important for capacity planning. 3. Random variation. This natural variability is present to some extent in all processes, as well as in demand for services and products, and it cannot generally be influenced by managers. 4. Assignable variation. These variations are caused by defective inputs, incorrect work methods, out-of-adjustment equipment, and so on. This type of variation can be reduced or eliminated by analysis and corrective action. Adapted from Operations Management by William J. Stevenson

Scope of OM • Reading; Operations Management by William J. Stevenson pp 11 – 14 • What is your view of the ‘Scope of OM’ • Write in your own (500) words and submit via turnitin.com • Class Name: BBA 2010-14 OM • Class ID: 6424702 • Enrollment Password: • Assignment Title: Scope of OM Adapted from Operations Management by William J. Stevenson

OM & Decision Making • It is important for OM personnel to make informed decisions answering what, when, where, how and who for a decision state • Following tools help in decision making; • Models; An abstraction of reality; a simplified representation of something • Quantitative approaches; For example, linear programming, PERT, CPM • Performance metrics • Analysis of trade-offs • Degree of customization • Systems approach Adapted from Operations Management by William J. Stevenson

OM & Decision Making • Systems approach to decision making; • System is a set of interrelated parts that must work together • The whole is greater than the sum of its individual parts • Efficiency of sub-systems contributes to overall efficiency • Establishing priorities; A few factors account for a high percentage of the occurrence of some event(s) (known as Pareto phenomenon) Adapted from Operations Management by William J. Stevenson

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OPERATIONS MANAGEMENT. OPRE 6260 Raymond Lutz. Products, Processes, and Performance - Chapter 1. Learning Objectives An operation as a transformation process Product attributes / Operational capabilities Process drivers / Operations structure. Operations and Strategy - Chapter 2.

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Operations Management. Chapter 16 – Just-in-Time and Lean Production Systems. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e . © 2006 Prentice Hall, Inc. Outline. Global Company Profile: Green Gear Cycling

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Operations Management. Chapter 5 – Design of Goods and Services. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e . Product Life Cycles. May be any length from a few hours to decades

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Operations Management. Chapter 2 – Operations Strategy in a Global Environment. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e . © 2006 Prentice Hall, Inc. % Sales % Assets Outside Outside

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Operations Management. Chapter 1 – Operations and Productivity. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e . © 2006 Prentice Hall, Inc. What Is Operations Management?.

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Operations Management. Chapter 13 – Aggregate Planning. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e . Outline. Global Company Profile: Anheuser-Busch The Planning Process The Nature of Aggregate Planning

1.18k views • 67 slides

Operations Management. Chapter 17 – Maintenance and Reliability. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e . Outline. Global Company Profile: Orlando Utilities Commission

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Operations Management. Module B – Linear Programming. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 6e Operations Management, 8e . © 2006 Prentice Hall, Inc. Lecture Outline. More Examples Practice formulating Practice solving

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Operations Management. Chapter 8 – Material Requirements Planning (MRP) and ERP. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e . Outline. Global Company Profile: Wheeled Coach Dependent Demand

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Operations Management. Chapter 11 – Supply Chain Management. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e . Outline. Global Company Profile: Darden Restaurants The Supply Chain’s Strategic Importance

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Operations Management. Chapter 12 – Inventory Management. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e . Inventory.

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Operations Management. The planning, scheduling, and control of the activities that transform inputs into finished goods and services. Viewing Operations as a Transformation Process. Transformation Process. Manufacturing operations. Inputs. Outputs. Materials People Equipment

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Operations Management. Chapter 1 0 – Short-Term Scheduling. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e . Outline. Global Company Profile: Delta Air Lines The Strategic Importance of Short-Term Scheduling

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Operations Management. What is Operations Management?. The business function responsible for planning , coordinating , and controlling the resources needed to produce a company’s products and services. What is Operations Management?. It is a management function

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Operations Management. Session 10: Probability Concepts. Simulation Game. Game codes due. Please go to http://usc.responsive.net/lt/usc/start.html to register. Course code: usc. Individual code: what you purchased from the bookstore. Case groups posted. Please double-check.

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Operations Management. Chapter 6 – Managing Quality. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e. Outline. Quality and Strategy Defining Quality Implications of Quality Malcolm Baldrige National Quality Award

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Operations Management. Chapter 6 – Managing Quality. PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e. Outline. Global Company Profile: Arnold Palmer Hospital Quality and Strategy Defining Quality

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