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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

Operations Management

Key to competitiveness

  • 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.
what is operations management om
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
role of operations management transform business s inputs into finished goods services
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

what does operations management involve
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
successful operations management
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
manufacturing vs service organizations
Manufacturing vs. Service Organizations



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
characteristics of manufacturing service organizations
Characteristics of Manufacturing & Service Organizations

Degree of Customer Contact



  • Physical product
  • Finished product can be inventoried
  • Low customer contact
  • Long response time
  • Capital intensive

Manufacturing Organization


Degree of Tangibility of Product Offering

  • Intangible product
  • Finished product cannot be inventoried
  • High customer contact
  • Short response time
  • Labor intensive

Service Organization


operations management decisions
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