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History of Operations Management

History of Operations Management. Industrial Revolution Scientific Management Human Relations Management Science Quality Revolution Information Age Globalization. Operations Strategy. Strategic Importance of Operations . Competing on Cost Competing on Quality Competing on Flexibility

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History of Operations Management

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  1. History of Operations Management • Industrial Revolution • Scientific Management • Human Relations • Management Science • Quality Revolution • Information Age • Globalization

  2. Operations Strategy

  3. Strategic Importance of Operations • Competing on Cost • Competing on Quality • Competing on Flexibility • Competing on Speed

  4. Competing on Cost • Elimination of all waste • Improve yield • Tighten productivity standards • Invest in automation • Example: Southwest Airlines

  5. Competing on Quality • Quality in defense: • Minimize defect rate • Conform to design specifications • Opportunity to please the customer • Understand attitudes towards and expectations of quality • Example: Ritz-Carlton Hotel

  6. Competing on Flexibility • Marketing wants variety for customers • Manufacturing wants stability and efficiency of a production system • Ability to produce variety of products • Introduce new products • Modify existing products • Respond quickly to customer needs • Example: Custom Foot

  7. Products and Services • Make-to-order • Made to customer specs • Wedding invitations • Make-to-stock • Made to “standard” customers • Books, TVs, apparel • Assemble-to-order • Standard modules are added to customer spec • Computer systems

  8. Processes and Technology • Project • Aircraft carrier • Batch production • printers • Mass production • automobiles • Continuous production • gasoline

  9. Other Areas of Interest • Capacity and Facilities • Human Resources • Quality • Sourcing • Operating Systems

  10. Competing on Speed • Fast moves • Fast adaptations • Tight linkages with suppliers • Change is embraced and risk-taking encouraged • Examples: McDonalds, LensCrafters, FedEX, • L.L. Bean shipping, Citicorp mortgages, HP testing equipment, Saks Fith Ave tailor-made suits

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