Introduction to Operations Management
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Transcript Introduction to Operations Management
Operations Management
An Overview
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APICS PROVIDENCE CHAPTER
FEBRUARY 19,2015
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A Simple Test
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Write down [silently!], two numbers that add up to
9
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Question for YOU
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In typical APICS exam style:
1. Is Operations Management a:
A. Science
B. Art
C. Figment of our imagination
D. None of the above
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Operations Management is:
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1) The planning, scheduling, and control of activities
that transform inputs into finished goods and
services.
2) A field of study that focuses on effective planning,
scheduling, use and control … covers the concepts of
engineering [design, industrial, quality], IT,
production, inventory, accounting …
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APICS Dictionary, 13th edition
APICS Principles of Operations Management
Series
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Principles of Operations Planning
Principles of Manufacturing Management
Principles of Manufacturing Operations
Principles of Inventory Management
Principles of Distribution & Logistics
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Typical Organization Chart
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OM’s Transformation Process
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OM’s Objective
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Attain the correct customer service
AND
Maintain the optimal operations efficiency
AND
Optimize the investment in inventory
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Goods & Services
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Manufacturing Services
Tangible product
Intangible product
Product can be
Product cannot be
inventoried
Low customer contact
Longer response time
Capital intensive
inventoried
High customer contact
Short response time
Labor intensive
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Growth of the Service Sector
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Service sector growing
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to 50-80% of non-farm
jobs
Global competitiveness
Demands for higher
quality
Huge technology
changes
Time based
competition
Work force diversity
OM Decisions
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Today’s OM Environment
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Customers demand better quality, greater speed,
and lower costs
Companies implementing lean system concepts – a
total system approach to elimination of waste
Recognized need to better manage information
using ERP expanded to the fully integrated
enterprise: CRM and SRM
Increased cross-functional decision making
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OM in Practice
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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
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Business Information Flow
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OM Across the Organization
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Most businesses are supported by the functions of
operations, marketing, new product engineering and
finance
The major functional areas must interact to achieve
the organization goals
Operations Management must include key customers
and key suppliers
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Summary
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Operations management covers the entire supply
chain!
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Z
Anthony Zampello, CPIM, CSCP
Consultant, Educator {APICS Master instructor:
CPIM, CSCP & Lead Instructor: Principles of
Operations Management}
Cell phone: 401.651.0746
[email protected]
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