We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byStefan Whitacre
Modified over 2 years ago
© Wiley Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid & Nada R. Sanders 4th Edition © Wiley 2010
© Wiley Learning Objectives Define and explain OM Explain the role of OM in business Describe the decisions that operations managers make Describe the differences between service and manufacturing operations Identify major historical developments in OM
© Wiley Learning Objectives – con’t Identify current trends in OM Describe the flow of information between OM and other business functions
© Wiley Operations Management is: The business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company
© Wiley Operations Management is: A management function An organization’s core function In every organization whether Service or Manufacturing, profit or Not for profit
© Wiley Typical Organization Chart
© Wiley What is Role of OM? OM Transforms inputs to outputs Inputs are resources such as People, Material, and Money Outputs are goods and services
© Wiley OM’s Transformation Process
© Wiley OM’s Transformation Role To add value Increase product value at each stage Value added is the net increase between output product value and input material value Provide an efficient transformation Efficiency – means performing activities well for least possible cost
© Wiley Manufacturers vs Service Organizations Services: Intangible product Product cannot be inventoried High customer contact Short response time Labor intensive Manufacturers: Tangible product Product is inventoried Low customer contact Longer response time Capital intensive
© Wiley Similarities for Service/Manufacturers Both use technology Both have quality, productivity, & response issues Both must forecast demand Both can have capacity, layout, and location issues Both have customers, suppliers, scheduling and staffing issues
© Wiley Service vs Manufacturing Manufacturing often provides services Services often provides tangible goods Some organizations are a blend of service/manufacturing/quasi- manufacturing Quasi-Manufacturing (QM) organizations QM characteristics include Low customer contact & Capital Intensive
© Wiley 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
© Wiley OM Decisions All organizations make decisions and follow a similar path First decisions very broad – Strategic decisions Strategic Decisions – set the direction for the entire company; they are broad in scope and long-term in nature
© Wiley OM Decisions Following decisions focus on specifics - Tactical decision Tactical decisions: focus on specific day-to-day issues like resource needs, schedules, & quantities to produce are frequent Strategic decisions less frequent Tactical and Strategic decisions must align
© Wiley OM Decisions
© Wiley Plan of Book-Chapters link to Types of OM Decisions
© Wiley Historical Development of OM Industrial revolutionLate 1700s Scientific managementEarly 1900s Human relations movement1930s-60s Management science1940s-60s Computer age1960s Environmental Issues1970s JIT & TQM*1980s *JIT= Just in Time, TQM= Total Quality Management
© Wiley Historical Development con’t Reengineering1990s Global competition1980s Flexibility1990s Time-Based Competition1990s Supply chain Management1990s Electronic Commerce2000s Outsourcing & flattening of world2000s For long-run success, companies must place much importance on their operations
© Wiley Today’s OM Environment Customers demand better quality, greater speed, and lower costs Companies implementing lean system concepts – a total systems approach to efficient operations Recognized need to better manage information using ERP and CRM systems Increased cross-functional decision making
© Wiley 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
© Wiley Business Information Flow
© Wiley OM Across the Organization Most businesses are supported by the functions of operations, marketing, and finance The major functional areas must interact to achieve the organization goals
© Wiley OM Across the Organization – con’t Marketing is not fully able to meet customer needs if they do not understand what operations can produce Finance cannot judge the need for capital investments if they do not understand operations concepts and needs Information systems enables the information flow throughout the organization Human resources must understand job requirements and worker skills Accounting needs to consider inventory management, capacity information, and labor standards
© Wiley Chapter 1 Highlights OM is the business function that is responsible for managing and coordinating the resources needed to produce a company’s products and services. The role of OM is to transform organizational inputs into company’s products or services outputs OM is responsible for a wide range of decisions, ranging from strategic to tactical. Organizations can be divided into manufacturing and service organizations, which differ in the tangibility of the product or service
© Wiley Chapter 1 Highlights – con’t Many historical milestones have shaped OM. Some of these are the Industrial Revolution, scientific management, the human relations movement, management science, and the computer age OM is highly important function in today’s dynamic business environment. Among the trends with significant impact are just-in-time, TQM, reengineering, flexibility, time-based competition, SCM, global marketplace, and environmental issues OM works closely with all other business functions
© Wiley The End Copyright © 2010 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.
© Wiley Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint.
© Wiley 2007 Chapter 7 – Just-in-Time and Lean Systems Operations Management by R. Dan Reid & Nada R. Sanders 3rd Edition © Wiley 2007 PowerPoint Presentation.
1 Operations Management Lesson 1 Fundamentals of Operations Management Prepared by Sudarsan Jayasingh.
Introduction to Operations Management Contents 1- What is Operations Management (OM)? 2- Importance of OM. 3- OM decisions. 4- OM's contributions to.
Copyright 2007 John Wiley & Sons, Inc. Chapter 81 Introduction to Information Systems, 1 st Edition Authors: Rainer, Turban and Potter Publisher: John.
PowerPoint Presentation to Accompany Chapter 1 of Management Canadian Edition Schermerhorn Wright Prepared by:Michael K. McCuddy Adapted by: Lynda Anstett.
PowerPoint Presentation to Accompany Chapter 11 of Management Canadian Edition Schermerhorn Wright Prepared by:Michael K. McCuddy Adapted by: Lynda Anstett.
McGraw-Hill/Irwin © The McGraw-Hill Companies, All Rights Reserved BUSINESS PLUG-IN B16 Operations Management.
Purchasing and Supply Chain Management by W.C. Benton Chapter Two Purchasing Decisions And Business Strategy McGraw-Hill/IrwinCopyright © 2010 The McGraw-Hill.
Copyright 2011 John Wiley & Sons, Inc Business Data Communications and Networking 11th Edition Jerry Fitzgerald and Alan Dennis John Wiley & Sons,
Chapter Chapter 15-2 CHAPTER 15 JOB ORDER COSTING JOB ORDER COSTING Accounting, Fourth Edition.
Learning Objectives 6.1 Explain the importance of mission, vision, and value statement and how they set the foundation for the planning process. 6.2 Describe.
Value Chain Management: Functional Strategies for Competitive Advantage McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill.
Managerial Accounting by James Jiambalvo Chapter 2: Job Order Costing and Modern Manufacturing Practices Slides Prepared by: Scott Peterson Northern State.
Organizational Behavior, 8e Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.
Slide 1 Systems Analysis and Design with UML Version 2.0, Second Edition Alan Dennis, Barbara Wixom, and David Tegarden Chapter 5: Requirements Determination.
1 OPERATIONS The term production and operations tend to be interchangeable today the main feature of operations is that there is an input, process, output.
Learning Objectives 11.1 Describe the advantages and disadvantages of the most common forms of business ownership Identify the stakeholders of a.
14 Supply Chain Management Professor Close. LO 1 Define the terms supply chain and supply chain management, and discuss the benefits of supply chain management.
5 chapter Based on: Business Essentials, 7 th Edition Ebert/Griffin © 2009 Pearson Education, Inc. Mr. AGUNG PRAPTAPA Teaching Material for MM 2010 BUSINESS.
Chapter 20 Operations Control McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives 7.1 Describe the organizing process and how formal and informal organizations differ. 7.2 Identify some common types of organizational.
OPERATIONS MANAGEMENT +. Introduction ………………………………………………….
Chapter 17 Organizational Design. Learning Goals Describe how organizational design coordinates activities in an organization and gets information to.
1 Business Processes and their Improvement. 2 Session Objectives n Develop an understanding of business processes n Review process modeling basics n Introduce.
Copyright 2011 John Wiley & Sons, Inc Business Data Communications and Networking 11th Edition Jerry Fitzgerald and Alan Dennis John Wiley & Sons, Inc.
7-1 Chapter 7 Enterprise-Wide Information Systems
© 2016 SlidePlayer.com Inc. All rights reserved.