Transcript Production and Operations Management: Manufacturing and

Operations Management
For Competitive Advantage
Operations Management
For Competitive Advantage
Chapter 1
Introduction to the Field
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Operations Management
Chapter 1
For Competitive Advantage
Overview: Introduction to the Field
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Operations Management
Why Study Operations Management?
Production System Defined
Operations as a Service
Plan of This Book
Historical Development of OM
Current Issues in OM
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Operations Management
For Competitive Advantage
What is Operations Management?
Defined
Operations management (OM) is defined
as the design, operation, and improvement
of the systems that create and deliver the
firm’s primary products and services.
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Operations Management
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For Competitive Advantage
Why Study Operations Management?
Systematic Approach
to Org. Processes
Business Education
Operations
Management
Cross-Functional
Applications
Career Opportunities
Operations Management
For Competitive Advantage
What is a Production System?
Defined
A production system is defined as a user
of resources to transform inputs into some
desired outputs.
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Operations Management
For Competitive Advantage
Transformations
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Physical--manufacturing
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Locational--transportation
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Exchange--retailing
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Storage--warehousing
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Physiological--health care
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Informational--telecommunications
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Operations Management
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What is a Service and What is a Good?
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“If you drop it on your foot, it won’t hurt you.”
(Good or service?)
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“Services never include goods and goods
never include services.” (True or false?)
Operations Management
For Competitive Advantage
Core Services
Definition
Core services are basic things that
customers want from products they
purchase.
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Operations Management
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For Competitive Advantage
Core Services Performance Objectives
Quality
Flexibility
Operations
Management
Price (or cost
Reduction)
Speed
Operations Management
For Competitive Advantage
Value-Added Services
Defined
Value-added services differentiate the
organization from competitors and build
relationships that bind customers to the
firm in a positive way.
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Operations Management
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For Competitive Advantage
Value-Added Service Categories
Problem Solving
Information
Operations
Management
Field Support
Sales Support
Operations Management
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For Competitive Advantage
Plan of This Book
I. Operations Strategy
and Managing Change
1. Introduction
to OM
2. Operations
Strategy and
Competitiveness
II. Product Design
and Process
Selection
III. Supply
Chain Design
5. Manufacturing
Product and
Process Design
6. Service
Products and
Process Design
7. Quality
Management
16. Consulting and
Reengineering
8. Supply
Chain Strategy
9. Strategic
Capacity
Management
4. Understanding
Processes
IV. Planning and
Controlling the
Supply Chain
3. Project
Management
10. Just-in-Time
Outsourcing and
Lean Systems
11. Forecasting
12. Aggregate
Planning
V. Revising
the System
13. Inventory
Control
17. Synchronous
Manufacturing
& Theory of
Constraints
14. Materials
Requirements
Planning
Operations Management
For Competitive Advantage
Historical Development of OM
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JIT and TQC.
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Manufacturing Strategy Paradigm.
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Service Quality and Productivity.
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Total Quality Management and Quality
Certification.
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Operations Management
For Competitive Advantage
Historical Development of OM (cont’d)
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Business Process Reengineering.
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Supply Chain Management.
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Electronic Commerce.
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Operations Management
For Competitive Advantage
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Current Issues in OM
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Effectively consolidating the operations
resulting from mergers.
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Developing flexible supply chains to enable
mass customization of products and services.
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Managing global supplier, production and
distribution networks.
Operations Management
For Competitive Advantage
Current Issues in OM (cont’d)
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Increased “commiditization” of suppliers.
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Achieving the “Service Factory”.
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Achieving good service from service firms.
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