1. Operations Management
MGT 60700
Operations Management

2. Key Concepts in Operations Management

3. Why is Operations Management Important?
Students should be able to:
Explain the importance of taking a process view of the firm.
Describe operations in terms of inputs, processes, outputs, information flows, suppliers and customers.
Describe how to link marketing strategy to operations strategy through the use of competitive priorities.

4. OM in Today’s World What are the biggest challenges to business today?
What criteria do companies use to make important decisions?

5. WORK FLOW IN FUNCTIONAL ORGANIZATIONS

6. Business Process Examples
New Business (product) development
Financial analysis
Sales
Health care
Accounting
Purchasing
Information generation and dissemination
Consulting
Manufacturing
Education

7. Internal Value-Chain LinkagesX T R N A L C U S O M E X T R N A L S U P I
Internal Value-Chain Linkages
Support Processes
New
Service/
Product Development
Process
Customer Relationship Process
Supplier Relationship Process
Order Fulfillment Process

8. Competitive Priorities
Cost 1. Low-cost operations
Quality 2. Top quality
3. Consistent quality
Time 4. Delivery speed
5. On-time delivery
6. Development speed
Flexibility 7. Customization
8. Variety
9. Volume flexibility

9. Competitive Priorities
Corporate Strategy
Market Analysis
Connection Between Corporate Strategy and Key Operations Management Decisions
Competitive Priorities
New Service/
Product Development No
Performance
Gap?
Yes
Operations Strategy
Decisions
Designing and Improving Processes
Designing Value Chains
Operating Value Chains
Capabilities

10. Operations Strategy in Action
Esquel Group
Gap
Competitive Priorities Major Decisions
Canon

11. Starbucks
Service Strategy
Variety of coffees
Sandwiches, desserts, CD burners, breakfast
“Express” pre-order/ pre-pay/ pickup
Upscale surroundings
Open stores quickly
Gap
Competitive Priorities Major Decisions