Operations Management Department of Managerial Sciences Georgia State University

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Operations ManagementDepartment of
ManagerialSciencesGeorgia State University
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Operations Management.WHAT?
The design and operation of processes systems
aimed at providing competitive goods and services
to the marketplace Transformation process of
converting inputs materials, labor, and capital
into outputs goods and services Series of
activities along a value chain extending from
supplier to customer Responsible for the core
competencies that a company derives its
competitive advantage
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Operations Management The Transformation
Process

• Physicalmanufacturing operations
• Locationallogistics and warehousing operations
• Exchangeretail operations
• Physiologicalhealth care
• Psychologicalentertainment
• Informationalcommunications

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The Operations Function.

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Operations Management Drives
Organizational Learning And Operational
Effectiveness

• Strive to be different.your market value depends
  on it. How, you ask!
• By performing similar activities better than
  your rivals perform them.
• Responsibility Operations Management

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Operational Effectiveness

• New set of performance objectives to ensure
  were performing our activities/processes
  betterthan the competition
• Flexibility
• Speed
• Dependability
• Quality
• Cost

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Operational Effectiveness

• Flexibility
• Product service flexibility
• Mix flexibility
• Volume flexibility
• Delivery flexibility

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Operational Effectiveness

• Speed
• New product launch
• Faster throughput times
• Less queuing and/or inventory
• Less overheads

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Operational Effectiveness

• Dependability
• How reliable are we when we make a commitment to
  our best customers?
• Delivery performance
• Paper work accuracy
• Inventory management
• Ease of doing business
• Ability to react to a change

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Operational Effectiveness

• Quality
• Design quality processes
• Conformance quality product
• More internal reliability
• Lower processing costs
• Less waste and rework

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Operational Effectiveness

• Cost
• Productivity outputs vs. inputs
• Productive processes
• Average Unit Cost
• Higher profits

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Operations Management Tools

• Enterprise Integration/ Supply Chain Management
• Product Design Development
• Material Resource Planning
• Total Quality Management
• Facility Location Layout
• Inventory Management
• Project Management
• Forecasting Models
• Capacity Decisions
• Process Selection
• Just-In-Time
• Scheduling

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• Organizational Profiles Environment,
  Relationships, and Challenges
• Baldrige Criteria for Performance Excellence

2 Strategic Planning
5 Human Resources Focus
1 Leadership
7 Business Results

3 Customer Market Focus
6 Process Management
4 Information Analysis