1. An Introduction to Operation Management Week 01 1

2. Course: Operation Management Week 1 Topics: Operation Management Course Objective To discuss a range of operation settings: To explain the role of operations, and their interaction with the other activities of a firm: finance, marketing, organization, corporate governance, etc. To understand how operations affect people and society. To appreciate the challenge, excitement and creativity associated with managing operations. To analyze operation processes from various perspectives such as efficiency, responsiveness, quality and productivity. To learn basic but useful analytical skills and tools in studying operations in specific and other activities (marketing, finance, etc) in general. 2

3. References 1. Supply Chain Management 5Ed. Sunil Chopra et al, Pearson Feb 5. 2012 2. Introduction To Material Management 7 th Ed. Tonny Arnold et al, Pearson Jan 10, 2011 3. Logistcs and Supply Chain Management 4 th es, Martin Christoper Pearson 2011 4. Manajemen Persediaan, Freddy Rangkuti, Rajawali. 2012 5. SWOT BSC, Freddy Rangkuti, Gramedia Pustaka Utama, 2013 6. Dongkrak Penjualan melalui Marketing Strategy & Competitive Positioning,Freddy Rangkuti, Gramedia Pustaka Utama, 2012 3

4. Sylabus Week 1 Short Description The management of the efficient transformation of inputs into outputs to suitably satisfy customers. Inputs are materials, labor, capital and management. Outputs are products or services, which customers want and often pay for. The course provides an introduction to the operations and the related management concepts. The level of discussion varies from strategical to daily control of business processes. 4

5. Operation Management Week 1 5

6. Operation Management 6

7. Customer Analysis Competitive Analysis Company Analysis Environmental Factors BODY OF KNOWLEDGE PENGEMBANGAN BISNIS Corporate Strategy SBU Functional Strategy ProductionMarketingSDM Finance IT

8. Kunci Sukses: Cara Berfikir Positif Terhadap Diri Sendiri Cerminan yang tampak dari luar adalah tindakan yang kita lakukan. Kita akan bekerja dengan sepenuh hati. Tujuan kita bekerja bukan sekedar mendapat imbalan uang, tetapi kita memiliki tujuan yang lebih tinggi yaitu karya besar yang akan kita wariskan kepada generasi muda. Hasil karya yang memberikan manfaat yang sebesar – besarnya buat generasi berikutnya.

9. Building Brand Relationships With Customers Reward: Sales Reward: More Sales and Profits Reward: Sales Building Brand Building Brand Relationships With Customers Create New Customers Changing World Traditional Product Focus Brand-Focus

10. Some Reasons for Product Failures Poor concept Poor target selection & positioning Insufficient differentiation Wrong entry timing Poor marketing mix for segment/positioning Poor implementation of mix Market too small Costs too high I N N O V A T I O N

11. Supply Chain Model 11

12. Supply Chain Model 12

13. Operation Management 1) The planning, scheduling, and control of the activities that transform inputs into finished goods and services. 2) A field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, inventory management, accounting, and other functions as they affect the operation. APICS dictionary 14ed H. Blackstone 2010 13

14. Supply Chain Management and Operation Management In brief: Supply Chain management and Operations management are similar and confusing terms in any organization While SCM pertains to activities outside the factory, OM refers to all that goes inside the factory SCM is a part of OM - http://www.differencebetween.com/difference-between-supply-chain- management-and-vs-operations-management/#ixzz2TWe8gAsG http://www.differencebetween.com/difference-between-supply-chain- management-and-vs-operations-management/#ixzz2TWe8gAsG 14

15. Materials Management The concept of having one department responsible for the flow of materials, from supplier through production to consumer, is relatively new. Although many companies have adopted this type of organization, there are still a number that have not. If companies wish to minimize total costs in this area and provide a better level of customer service, they will move in this direction. The name usually given to this function is materials management. Materials Management defined by Tonny Arnold is called Operation Management by some other author. Materials Management Concept and methodolgy has widely use by APICS and SAP Software. 15

16. Introduction to the Field Why Study Operations Management? Definition of Operations Management Operations Decision Making Managing Transformations Service or Good? Development of OM as a Field Current Issues 16

17. Why Study Operations Management? Operations Management Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications 17

18. Production and Operations Management Definition Production and Operations management is defined as the design, operation, and improvement of the production system that creates the firm’s primary products and services. 18

19. Prosedur Penyusunan Program Operasional ANALISIS SWOT Corporate Strategy Operations Strategy Operations Management/Program Marketing StrategyFinance Strategy People PlantsPartsProcesses Planning and Control Production System Materials & Customers Input Products & Services Output 19

20. OM Involves Managing Transformations InputOutput People Plants Parts Processes Planning and Control Transformation Process (Value Adding) Transformation is enabled by The 5 Ps of OM: 20

21. Transformations Physical--manufacturing Location--transportation Exchange--retailing Storage--warehousing Physiological--health care Informational--telecommunications 21

22. Service or Good? “If you drop it on your foot, it won’t hurt you.” (Good or service?) “Services never include goods and goods never include services.” (True or false?) 22

23. Core “Factory Services” Quality Flexibility Speed Price (or production cost) 23

24. Value-Added Factory Services Information Problem Solving Sales Support Field Support 24

25. Development of OM as a Field Scientific Management Moving Assembly Line Hawthorne Studies Operations Research Historical Underpinnings Computers (MRP) JIT/TQC & Automation Manufacturing Strategy Service Quality and Productivity TQM & Quality Certification Business Process Reengineering Electronic Enterprise Global Supply Chain Mgmt. OM's Emergence as a Field 25

26. Current Issues Speeding up the time it takes to get new products into production. Developing flexible production systems to enable mass customization of products and services. Managing global production networks. Developing and integrating new production technologies into existing production systems. 26

27. Current Issues Achieving high quality quickly and keeping it up in the face of restructuring. Managing a diverse workforce. Conforming to environmental constraints, ethical standards, and government regulations. 27

28. Wealth What is it? Where does it come from? Adding value – Designing the process – Managing the process 28

29. Wealth Natural resources Transformation Conversion Managing the process Services 29

30. Operating Environment Government – regulations – Safety Economy – effects demand – shortages and surpluses Competition is now global – reduced costs of transportation – communications, reduced costs and increased speed 30

31. Operating Environment (continued) Customers demand – Lower prices – Improved quality – Reduced lead time – Improved pre-sale and after-sale service – Product and volume flexibility 31

32. Quality Order Qualifiers: – customer requirements for price, quality, delivery, etc Order Winners: – those characteristics that persuade customers to select a product or service “Today’s order winners are tomorrows order qualifiers” 32

33. Manufacturing Strategy Figure 1.1 Manufacturing strategy and lead time 33

34. Engineer-to-Order Manufacturer does not start until the order is received Custom designs Unique products Long lead time Inventory purchased after order is received 34

35. Make-to-Order Manufacturer does not start until the order is received Often uses standard components Little design time Lead time is reduced Inventory held as raw materials 35

36. Assemble-to-Order Manufacturer inventories standard components No design time required Assembly only required Shorter lead time Inventory held as standard components 36

37. Make-to-Stock Manufacturer produces the goods in anticipation of customer demand Little customer involvement with design Shortest lead time Inventory held as finished goods 37

38. CASE STUDY Makalah Membuat Program Operasional Latar Belakang Masalah Prospek Bisnis dan Demand Forecast Analisis Persaingan Analisis Segmentasi, Targeting dan Positoning Analisis SWOT Strategic Formulation Penyusunan Strategy Operasional Penyusunan Program Operasional 38

39. Publikasi Karya Dr. Freddy Rangkuti