Presentation is loading. Please wait.

Presentation is loading. Please wait.

© Wiley 20051 Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint.

Similar presentations


Presentation on theme: "© Wiley 20051 Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint."— Presentation transcript:

1 © Wiley Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint Presentation by R.B. Clough - UNH

2 © Wiley Learning Objectives Define OM Role of OM in business Decisions that operations managers make OM differences between service and mfg. Major historical developments in OM Identify current trends in OM Define information flow between OM and other business functions

3 © Wiley What is Operations Management? The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services

4 © Wiley Typical Organization Chart

5 © Wiley OM’s Transformation Role

6 © Wiley Why OM? “In business today, the emphasis is not so much on what you make, but on how you do business. Dell makes computers just like every other PC manufacturer.” Quote: KT CEO on CNBC 4/99 The resurgence of American business in the 1990’s capitalized on improved operations.

7 © Wiley Differences between Manufacturers and Service Organizations Services: Intangible product Product cannot be inventoried High customer contact Short response time Labor intensive Manufacturers: Tangible product Product can be inventoried Low customer contact Longer response time Capital intensive

8 © Wiley Similarities-Service/Manufacturers All use technology Both have quality, productivity, & response issues All must forecast demand Each will have capacity, layout, and location issues All have customers and suppliers All have scheduling and staffing issues

9 © Wiley Trends in OM Service sector growing to 80% of non-farm jobs- See Figure 1-4 Global competitiveness Demands for higher quality Huge technology changes Time based competition Work force diversity

10 © Wiley OM Decisions

11 © Wiley Plan of Book-Chapters link to Types of OM Decisions

12 © Wiley Historical Development of OM Industrial revolutionLate 1700s Scientific managementEarly 1900’s Human relations movement1930s to 1960s Management scienceMid-1900s Computer age1970s Just-in-Time Systems (JIT)1980s Total quality management (TQM)1980’s Reengineering 1990s Flexibility1990s Time-Based Competition1990s Supply chain Management1990’s Global Competition1990s Environmental Issues1990s Electronic CommerceLate 1990s

13 © Wiley Today’s OM Environment Customers demand better quality, faster deliveries, and lower costs Increased cross-functional decision making Recognized need to better manage information using ERP and CRM systems

14 © Wiley Business Information Flow

15 © Wiley Chapter 1 Highlights OM is function that manages the resources that add value Its role is to transform inputs into products or services Decisions are many and vary from daily tactical to strategic Key differences between mfg. and service companies are tangibility of product and degree of customer contact Historical milestones range from 1700s Industrial Revolution to the modern Electronic Commerce age OM must understand and implement major process changes like JIT, TQM, supply chain management, and environmental changes OM works closely with all other business functions

16 © Wiley The End Copyright © 2005 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United State Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.


Download ppt "© Wiley 20051 Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint."

Similar presentations


Ads by Google