Management 360

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Management 360

• Operations Management

Jere Hawn
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PART ONE
INTRODUCTION

• Chapter One
• Introduction to Operations Management
• Chapter Two
• Competitiveness, Strategy, and Productivity

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Chapter One

• Introduction to Operations Management

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Introduction to Operations Management
Operations Management
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The Three Primary Business Functions

• Marketing
• Finance
• Operations Management

• Sell it (Manage customer relationships)

• Pay for everything (Manage financial resources)

• Make it (Manage physical and human resources)

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Introduction to Operations Management
Business Operations Overlap
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Introduction to Operations Management

• Operations Management includes
• Forecasting
• Capacity planning
• Scheduling
• Managing inventories
• Assuring quality
• Motivating employees
• And more . . .

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THE MANUFACTURING SERVICE CONTINUUM

• Most operations have both a manufacturing and a
  service component
• Tangible output versus intangible output
• Low customer contact versus high customer contact
• Steel mill versus theater
• Jet manufacturer versus hospital

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Introduction to Operations Management
Goods-service continuum
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Introduction to Operations Management
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Introduction to Operations Management
Types of Operations
Operations
Examples
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Introduction to Operations Management
Value-Added
The difference between the cost of inputs and
the value or price of outputs.
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OPERATIONS MANAGEMENT OBJECTIVE

• Adding Value through effective management of
  transformation process

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Introduction to Operations Management
Food Processor
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Introduction to Operations Management
Hospital Process
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Introduction to Operations Management
Operations Interfaces
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OPERATIONS MANAGEMENT OVERVIEW

• System Design
• Get set up and ready to make product
• Facility location and layout
• Work design
• Quality system design
• Supply Chain Management
• Determine what, how much, and when
• Estimate demand
• Schedule purchasing and production
• Allocate capacity

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Introduction to Operations Management
Decision Making
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Introduction to Operations Management
Decision Making
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Introduction to Operations Management
Major Characteristics of Production Systems
Degree of standardization
Type of operation

project

job shop

repetitive production

continuous processing
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Introduction to Operations Management
Manufacturing or Service?
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Introduction to Operations Management
Key Differences
These differences are beginning to fade
in many cases
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Introduction to Operations Management
Manufacturing vs Service
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Introduction to Operations Management
Responsibilities of Operations Management
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Introduction to Operations Management
Models
A model is an abstraction of reality.
Tradeoffs
What are the pros and cons of models?
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Introduction to Operations Management
Systems Approach
The whole is greater than the sum of the parts.
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Introduction to Operations Management
Quantitative Approaches
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Introduction to Operations Management
Pareto Phenomenon

A vital few things are important for reaching
an objective or solving a problem.

80/20 Rule - 80 of problems are caused by
20 of the activities.
How do we identify the vital few?
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Introduction to Operations Management
Recent Trends

• The Internet
• E-Business
• Supply Chain Management

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Introduction to Operations Management
Simple Product Supply Chain
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Introduction to Operations Management
Continuing Trends