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Introduction To Operations Management

Introduction To Operations Management

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Introduction To Operations Management

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  1. Introduction ToOperations Management POM 370 Dr. Drew Rosen

  2. Business Environment • Improvement of organizational activities to ensure quality, customer satisfaction , and loyalty • Investments • Capital • Stock Market • Nceufhkurreffg • Org. Behavior • Policy • Strategy • Sit on their ass • Sales • Promotion • Research Behavior • Fairy land • The application of people, technologies, and procedures to solve business problems • Bookkeeping • Pensions • Audits • The study of how the forces of supply and demand allocate scarce resources

  3. Operations Management • Designing Products and Sevices

  4. Operations Management • Facility Location and Layout

  5. Operations Management • Project Management

  6. Operations Management • Scheduling Operations

  7. Operations Management • Inventory Control

  8. Operations Management • Quality Management

  9. Operations Management Quality Management

  10. Operations Management • Operations Management is: The management of systems or processes that create goods and/or provide services • Operations Management affects: • Companies’ ability to compete • Nation’s ability to compete internationally

  11. OM Decisions Where to locate your business?

  12. OM Decisions What type of process to use?

  13. OM Decisions Number of workers to employ? Number of workers scheduled at each station?

  14. More than just McDonalds… Forecasting park demands Reducing wait times Managing projects

  15. Operations is AboutMaking Business Run Better • More Efficiently • More Abundantly • With Higher Customer Satisfaction

  16. The Goal of Operationsand business! Loyalty Loyalty Customer Satisfaction Quality

  17. Satisfaction and Loyalty apostle zone of affection 100% 80% zone of indifference 60% Loyalty (Retention) 40% zone of defection 20% terrorist 1 2 3 4 5 Dissatisfied Satisfied Very satisfied Neutral Very dissatisfied Satisfaction

  18. Goods Vs ServicesKey Differences: 1. Inseparability 2. Intangibility 3. Perishability 4. Heterogeneity 5. Site Location 6. Labor Intensity 7. Difficulty of Measuring Quality of Output Production of goods – tangible output Delivery of services – an act

  19. Big Picture: OM Transformation Process Transformations Physical: manufacturing Locational: transportation Exchange: retailing Storage: warehousing Physiological: health care Informational: telecommunications OUTPUTS INPUTS

  20. Three Basic Ways to Arrange the Transformation Process • Job Shop • Variety of outputs in small batches • Customized output • General purpose machinery • Highly skilled workers • Flow Shop • High Volume • Standardized output • Special purpose equipment • Lower skilled workers

  21. Profits are the result of attention to quality and customer satisfaction, while the reverse is rarely true. Edwards Deming