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Chapter 1 Introduction to the Field. Operations Management Why Study Operations Management? Transformation Processes Defined Operations as a Service The Importance of Operations Management Historical Development of OM Current Issues in OM. OBJECTIVES .

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Presentation Transcript
slide2
Operations Management
  • Why Study Operations Management?
  • Transformation Processes Defined
  • Operations as a Service
  • The Importance of Operations Management
  • Historical Development of OM
  • Current Issues in OM

OBJECTIVES

what is operations management defined
What is Operations Management?Defined

Operations management (OM) is defined as the design, operation, and improvement of the systemsthat create and deliver the firm’s primary products and services

why study operations management
Why Study Operations Management?

Systematic Approach

to Org. Processes

Operations

Business Education

Career Opportunities

Management

Cross-Functional

Applications

what is a transformation process defined
What is a Transformation Process?Defined

A transformation process is defined as a use of resources to transform inputs into some desired outputs

transformations
Transformations
  • Physical--manufacturing
  • Locational--transportation
  • Exchange--retailing
  • Storage--warehousing
  • Physiological--health care
  • Informational--telecommunications
what is a service and what is a good
What is a Service and What is a Good?
  • “If you drop it on your foot, it won’t hurt you.” (Good or service?)
  • “Services never include goods and goods never include services.” (True or false?)
slide8

OM in the Organization Chart

Finance

Marketing

Operations

Plant Manager

Operations

Manager

Director

Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc

core services are basic things that customers want from products they purchase
Core servicesare basic things that customers want from products they purchase

Core Services

Defined

core services performance objectives

Quality

Flexibility

Speed

Price (or cost

Reduction)

Core Services Performance Objectives

Operations

Management

slide11

Value-added servicesdifferentiate the organization from competitors and build relationships that bind customers to the firm in a positive way

Value-Added ServicesDefined

slide12

Value-Added Service Categories

Problem Solving

Operations

Sales Support

Information

Management

Field Support

the importance of operations management
The Importance of Operations Management
  • Synergies must exist with other functional areas of the organization
  • Operations account for 60-80% of the direct expenses that burden a firm’s profit.
historical development of om
Historical Development of OM
  • JIT and TQC
  • Manufacturing Strategy Paradigm
  • Service Quality and Productivity
  • Total Quality Management and Quality Certification
historical development of om cont d
Historical Development of OM (cont’d)
  • Business Process Reengineering
  • Supply Chain Management
  • Electronic Commerce
current issues in om
Current Issues in OM
  • Coordinate the relationships between mutually supportive but separate organizations.
  • Optimizing global supplier, production, and distribution networks.
  • Increased co-production of goods and services
current issues in om cont d
Current Issues in OM (cont’d)
  • Managing the customer’s experience during the service encounter
  • Raising the awareness of operations as a significant competitive weapon
question bowl
Question Bowl

A major objective of this book is to show how smart managers can do which of the following?

  • Improve efficiency by lowering costs
  • Improve effectiveness by creating value
  • Increasing value by reducing prices
  • Serving customers well
  • All of the above

Answer: e. All of the above

question bowl19
Question Bowl

In the Input-Transformation-Output Relationship, a typical “input” for a Department Store is which of the following?

  • Displays
  • Stocks of goods
  • Sales clerks
  • All of the above
  • None of the above

Answer: e. None of the above (The above are considered “Resources” of a department store. The correct answer is “Shoppers”.)

question bowl20
Question Bowl

In which of the following decades did the concept of quality control originate?

  • 1920’s
  • 1930’s
  • 1940’s
  • 1950’s
  • 1970’s

Answer: b. 1930’s (Tools such as sampling inspection and statistical tables where first developed by Walter Shewhart, H. F. Dodge, and H. G. Romig.)