operations management foundation l.
Skip this Video
Download Presentation
Operations Management & Foundation

Loading in 2 Seconds...

play fullscreen
1 / 21

Operations Management & Foundation - PowerPoint PPT Presentation

  • Uploaded on

Operations Management & Foundation. Dr. Mellie Pullman MBA Class 1. Where does operations management fit into a business?. How are we going to _________ the product or service? Other functional areas: Marketing Accounting Finance Human Resources Information Systems.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Operations Management & Foundation' - naiya

Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
operations management foundation

Operations Management & Foundation

Dr. Mellie Pullman

MBA Class 1

where does operations management fit into a business
Where does operations management fit into a business?
  • How are we going to _________ the product or service?
  • Other functional areas:
    • Marketing
    • Accounting
    • Finance
    • Human Resources
    • Information Systems
operations management and the big picture
Operations Management and the big picture.
  • The operations function is that part of the organization that exists primarily to generate and produce the organization’s products or services.
  • OM provides a systematic way of looking at organizational processes.
  • Concepts and tools of OM are widely used in managing other functions of a business.
operations as a process



Operations as a Process




conversions include
Conversions include:
  • Physical: manufacturing or haircut
  • Location: transportation
  • Exchange: retailing
  • Storage: warehousing
  • Physiological: health care
  • Informational: telecommunications
operations as a process6




Goods or




Feedback information for

control of process inputs

and process technology

Operations as a Process




process boundary is important
Process Boundary is Important!
  • How many liters of water does it take to make 1 Liter bottle of Coke?
what is managed inside the box 5 ps
What is managed inside the box? 5 Ps

Parts &




Planning &


Plants or Facilities

discussion breakout
Discussion Breakout
  • Think of a local company that has a sustainability focus:
    • What activities have they done for each of the 5 P’s to improve their sustainability?
      • People
      • Parts & Equipment
      • Processes
      • Plants or Facilities (Buildings)
      • Planning & Scheduling (Measuring/Monitoring)
    • Alternatively, think of a company that you believe does “green-washing”, where are there particular problems with any of the 5 Ps?
strategy getting a competitive advantage through operations

Strategy!Getting a Competitive Advantage through Operations

“Strategy without tactics is the slowest route to victory; Tactics without strategy is the noise before defeat.”

Sun Tzu (2001)

the role of business strategy
The Role of Business Strategy
  • The firm’s long-range plan based on an understanding of the marketplace
  • Defines how a company intends to differentiate itself from competitors
  • Individual employees & functional units use the strategy to align their efforts with each other to accomplish the overall game plan
operations strategy model

Business strategy





Consistent pattern of decisions


Operations Strategy Model

Corporate strategy

Functional strategies in

marketing, finance,

engineering, human

resources, and

information systems

Operations Strategy





(cost, quality, flexibility, delivery, etc)


(process, quality systems, capacity,

and inventory)

distinctive competence
Distinctive competence
  • What does Southwest do better than most (if not all) of their competitors?
operations strategy is generally based on 5 common objectives or competitive priorities
Operations Strategy is generally based on 5 Common objectives or competitive priorities
  • They include:
    • Cost: low production costs enables the company to price its product below competitors
    • Quality: higher performance or a more consistent product can support a price premium
    • Time: faster delivery or consistent on-time delivery can support a price premium
    • Flexibility: highly customized products or volume flexibility can support a price premium
    • Sustainability: products that connect with consumers on social, environmental, and other values.

Example Movie: Castaway

can simultaneously do all those well hot lips pizza



Fresh, Natural Ingredients

Toppings & Crust Choice

Expensive Ingredients

Slow to Cook

Low Volume Ovens




Can simultaneously do all those well?Hot Lips Pizza
operations strategy the tactics
Operations Strategy & the “tactics”
  • The long-range plan for the design & use of the operations function to support the overall business strategy:
    • The location, size, & type of facilities
    • The worker skills & talents required
    • The technology & processes to be used
    • How product & service quality will be controlled
linking operations to business strategies
Linking Operations to Business Strategies
  • Business strategy alternatives
    • Product imitator
      • Operations must focus on keeping costs low. (generic drugs)
    • Product innovator
      • Operations must maintain flexibility in processes, labor and suppliers. (Rubbermaid)
distinguish order qualifiers from order winners
Distinguish Order Qualifiers from Order Winners
  • Order Qualifiers:
    • Competitive priorities that a product must meet to even be considered for purchase
    • Generally, represented by features shared by all competitors in a given market niche
  • Order Winners:
    • Competitive priorities that distinguish the firm’s offerings from competitors & ultimately win the customer’s order
examples of operations distinctive competence
Examples of Operations Distinctive Competence
  • Skills of employees
  • Proprietary equipment or processes
  • Rapid continuous improvement
  • Well developed partnerships
  • Location
  • Organizational knowledge
  • Proprietary information or control systems
  • Process Mindset
  • How Operations fits into the strategy of an organization
  • Operations as a competitive advantage
  • Operations as the key to addressing sustainability