1. Introduction to Operations Management

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

3. Typical Organization Chart

4. OM’s Transformation Role

5. 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

6. 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

7. Trends in OM Service sector growing to 80% of non-farm jobs
Global competitiveness
Demands for higher quality
Huge technology changes
Time based competition
Work force diversity

8. OM Decisions

9. 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 (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems

10. Business Information Flow