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Operations Management An Overview

An overview of operations management, covering planning, scheduling, control, and transformation of inputs into finished goods and services. Includes principles of operations management and the role of OM in organizations.

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Operations Management An Overview

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  1. Operations ManagementAn Overview APICS Providence chapter February 19,2015 Zampello and Associates

  2. A Simple Test • Write down [silently!], two numbers that add up to • 9 Zampello and Associates

  3. Question for YOU • In typical APICS exam style: 1. Is Operations Management a: • A. Science • B. Art • C. Figment of our imagination • D. None of the above Zampello and Associates

  4. Operations Management is: 1) The planning, scheduling, and control of activities that transform inputs into finished goods and services. 2) A field of study that focuses on effective planning, scheduling, use and control … covers the concepts of engineering [design, industrial, quality], IT, production, inventory, accounting … • APICS Dictionary, 13th edition Zampello and Associates

  5. APICS Principles of Operations Management Series • Principles of Operations Planning • Principles of Manufacturing Management • Principles of Manufacturing Operations • Principles of Inventory Management • Principles of Distribution & Logistics Zampello and Associates

  6. Typical Organization Chart Zampello and Associates

  7. OM’s Transformation Process Zampello and Associates

  8. OM’s Objective Attain the correct customer service AND Maintain the optimal operations efficiency AND Optimize the investment in inventory Zampello and Associates

  9. Goods & Services • Services • Intangible product • Product cannot be inventoried • High customer contact • Short response time • Labor intensive • Manufacturing • Tangible product • Product can be inventoried • Low customer contact • Longer response time • Capital intensive Zampello and Associates

  10. Growth of the Service Sector • Service sector growing to 50-80% of non-farm jobs • Global competitiveness • Demands for higher quality • Huge technology changes • Time based competition • Work force diversity Zampello and Associates

  11. OM Decisions Zampello and Associates

  12. Today’s OM Environment • Customers demand better quality, greater speed, and lower costs • Companies implementing lean system concepts – a total system approach to elimination of waste • Recognized need to better manage information using ERP expanded to the fully integrated enterprise: CRM and SRM • Increased cross-functional decision making Zampello and Associates

  13. OM in Practice • OM has the most diverse organizational function • Manages the transformation process • OM has many faces and names such as; • V. P. operations, Director of supply chains, Manufacturing manager • Plant manger, Quality specialists, etc. • All business functions need information from OM in order to perform their tasks Zampello and Associates

  14. Business Information Flow Zampello and Associates

  15. OM Across the Organization • Most businesses are supported by the functions of operations, marketing, new product engineering and finance • The major functional areas must interact to achieve the organization goals • Operations Management must include key customers and key suppliers Zampello and Associates

  16. Summary • Operations management covers the entire supply chain! Zampello and Associates

  17. Zampello and Associates

  18. Z • Anthony Zampello, CPIM, CSCP • Consultant, Educator {APICS Master instructor: CPIM, CSCP & Lead Instructor: Principles of Operations Management} • Cell phone: 401.651.0746 •  z@zampelloandassociates.com Zampello and Associates

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