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Chapter 1 Overview: Introduction to the Field

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Overview: Introduction to the Field Operations Management Why Study Operations Management? Production System Defined Types of Transformations Objectives of Operations ... – PowerPoint PPT presentation

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Title: Chapter 1 Overview: Introduction to the Field


1
Chapter 1Overview Introduction to the Field
  • Operations Management
  • Why Study Operations Management?
  • Production System Defined
  • Types of Transformations
  • Objectives of Operations Management
  • Goods Versus Services
  • Plan of the Course
  • OSCM Jobs
  • OSCM Placement and Salary Statistics

2
What is Operations Management?Formal Definition
  • Operations management (OM)

3
OM involves management of the entire system that
produces a good or service
4
Why Study Operations Management?
Operations Management
5
What is a Production System?Defined
  • A production system uses resources to
    transform inputs into some desired outputs.

6
Types of Transformations
  • Physical--
  • Locational--
  • Exchange--
  • Storage--
  • Physiological--
  • Informational--

7
Core services basic things that customers want
from products they purchase.
The 4 Objectives of Operations Management
1. 2. 3. 4.
8
Goods Versus Services - Continued
Goods
Service
  • Tangible product
  • Consistent product definition
  • Production usually separate from consumption
  • Can be inventoried
  • Can be resold
  • Some aspects of quality measurable

9
Goods Versus Services
Goods
Service
  • Low customer interaction
  • Product is transportable
  • Site of facility important for cost
  • Often easy to automate

10
Goods Contain Services Services Contain Goods
Automobile
Computer
Installed Carpeting
Fast-food Meal
Restaurant Meal
Auto Repair
Hospital Care
Advertising Agency
Investment Management
Consulting Service
Counseling
Percent of Product that is a Good
Percent of Product that is a Service
11
Plan of This Course
  • 1. Gaining a competitive advantage - strategy,
    project management
  • 2. Product Design and Process Selection - goods,
    services, quality, analysis
  • 3. Supply Chain design - JIT, ERP, electronic
    commerce, supply chain strategy, capacity
    management
  • 4. Planning and controlling the supply chain -
    forecasting, aggregate planning, MRP, inventory
    management, TOC

12
Where Are the OM Jobs?
  • Technology/methods
  • Facilities/space utilization
  • Strategic issues
  • Response time
  • People/team development
  • Customer service
  • Quality
  • Cost reduction
  • Inventory reduction
  • Productivity improvement
  • Supply chain analyst/management
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