1. Operations Management

2. Organization Three Legged Stool • Finance • Operations • Marketing

3. Operations Management • Management of systems • Management of processes For the creation of goods and/or services

4. Function of Operations • Transform or convert inputs to outputs • Inputs • People Materials • Tools & machines • Energy Information • Finances Time

5. Transformation • Conversion of inputs to desired output • “Value added” process • Measurement is the dollar • Value added is greater than cost

6. Goods vs. Services • Production of goods results in an object with mass • Service delivery implies an act

7. Is it a Good or Service • Degree of customer contact • Uniformity of input • Uniformity of output • Labor Content of job • Measurement of productivity • Production and delivery • Quality assurance • Amount of inventory

8. Scope of Operations Management • Forecasting • Capacity planning • Scheduling

9. Scope of Operations Management • Managing inventories • Assuring quality • Motivating and training employees • Locating facilities

10. Operation Function • All activities directly related to: • Producing Goods • Providing Services

11. Decisions • Guidance by decision making • Design of system • Operation of system

12. In addition • Purchasing • Industrial Engineering • Distribution • Maintenance

13. At the Core • Operations is the reason for existence • Additional functions are supporting • Finance—Marketing • Half of all employees in Nation work in operations

14. Why Study Operations Mgmt? • Organizations operate most efficiently when all functions work together • Requires an understanding of individual role and the role’s or functions of others

15. Leads to: • Exchange of information • Cooperative decision making • Stronger Organization = Success