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Operations Management

Operations Management. Key to competitiveness. Objectives. Identify the function of Operations Management within an organization. Identify the role of Operations Management within an organization. Lists the tasks involved in Operations Management.

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Operations Management

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  1. Operations Management Key to competitiveness

  2. Objectives • Identify the function of Operations Management within an organization. • Identify the role of Operations Management within an organization. • Lists the tasks involved in Operations Management. • Identify the factor for successful Operations Management. • Operations Management in Manufacturing vs. Service businesses. • Identify Strategic & Tactical Operations Management Decisions.

  3. What is Operations Management (OM)? • Function of Operations Management is to Plan, Organize, Coordinate, & ControlResources to produce goods & services • People, Equipment, Technology, Information • Central core function of every business

  4. Three Major Business Functions

  5. Role of Operations ManagementTransform Business’s Inputs into Finished Goods & Services Customer Feedback • Inputs • Human Resources • Facilities & Processes • Technologies • Materials • Outputs • Goods • Services The Transformation Process Performance Information

  6. What Does Operations Management Involve? • Managing all aspects of the process to transform inputs into outputs • Product design • Deciding what resources are needed • Arranging schedules, equipment, & facilities • Managing inventory • Controlling quality • Designing jobs to make the product • Designing work methods

  7. Successful Operations Management • Adds Value • Value of Outputs > Value of Inputs • Increases Efficiency • Minimizes/eliminates activities that do not add value (waste) • Restructures processes & jobs

  8. Manufacturing vs. Service Organizations Manufacturing Service Produce intangible products that cannot be produced in advance Customers typically present during creations of the service • Produce physical, tangible goods that can be stored in inventory before they are needed • Most customers do not have direct contact with operations • Through distributors & retailers

  9. Characteristics of Manufacturing & Service Organizations Degree of Customer Contact High Low • Physical product • Finished product can be inventoried • Low customer contact • Long response time • Capital intensive Manufacturing Organization Tangible Degree of Tangibility of Product Offering • Intangible product • Finished product cannot be inventoried • High customer contact • Short response time • Labor intensive Service Organization Intangible

  10. Operations Management Decisions • Strategic Decisions • Broad in Scope • Long-term in nature • All encompassing • Tactical Decisions • Narrow in Scope • Short-term in nature • Concerning a small group of issues

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