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Introduction To Operation Management

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Introduction to Operations Management
Contents I. The operations system in Organizations Example: The operations system for a Department store Example : The operations system for a farm II. Manufacturing operations Versus Service operations III. Goods-service Continuum IV. Manufacturing vs Service V. Management-Process Management VI. Operations Management Defined
The part of an organization that produces the organization’s physical goods or services. I. The operations system in Organizations ,[object Object],[object Object],[object Object],[object Object],[object Object],Conversion Process Adjustments Needed ? Random Fluctuations Comparison: Actual vs. Desired ,[object Object],[object Object],[object Object],Monitor Output
The process of changing inputs of labour, capital, land and management into outputs of goods and services. Conversion Process Random Fluctuations Unplanned or uncontrollable environmental influences (strikes, floods, etc.) that cause planned and actual output to differ. Feedback Information in the control process that allows management to decide whether organizational activities need adjustment Technology The level of scientific sophistication in plant, equipment, and skills in the conversion process. Contd. …The operations system in Organizations
Value-Added The difference between the cost of inputs and the value or price of outputs. Contd. …The operations system in Organizations Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Control Feedback Feedback Feedback Value added
Example: The operations system for a Department store ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Conversion Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example : The operations system for a farm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Conversion Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
II. Manufacturing operations Versus Service operations A conversion process that includes manufacturing (or production) yields a tangible output: a product. In contrast, a conversion process that includes service yields an intangible output: a deed, a performance, an effort.
Steel production Automobile fabrication Home remodeling Retail sales Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing High percentage goods Low percentage service III. Goods-service Continuum Low percentage goods High percentage service
IV. Manufacturing vs Service Characteristic Manufacturing Service Output Customer contact Uniformity of input Labor content Uniformity of output Measurement of productivity Opportunity to correct Tangible Low High Low High Easy High Intangible High Low High Low Difficult Low quality problems High
V. Management-Process Management Process Management One of several theories of classical management, emphasizing management as a continuous process of planning, organizing and controlling to influence the other’s actions. Planning Controlling Organizing
Management-Process Management Process Management ,[object Object],[object Object],2. Organizing includes all activities that establish a structure of tasks and authority. 3. Controlling Includes all activities that ensure that actual performance is in accordance with planned performance.
VI. Operations Management Defined Operations Management Management of the conversion process, which converts land, labour, capital and management inputs into desired outputs of goods and services.
Operations Management Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],PLANNING ORGANIZING CONTROLLING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CONVERSION PROCESS Inputs Outputs FEEDBACK Random Fluctuations

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Introduction To Operation Management

  • 1. Introduction to Operations Management
  • 2. Contents I. The operations system in Organizations Example: The operations system for a Department store Example : The operations system for a farm II. Manufacturing operations Versus Service operations III. Goods-service Continuum IV. Manufacturing vs Service V. Management-Process Management VI. Operations Management Defined
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  • 4. The process of changing inputs of labour, capital, land and management into outputs of goods and services. Conversion Process Random Fluctuations Unplanned or uncontrollable environmental influences (strikes, floods, etc.) that cause planned and actual output to differ. Feedback Information in the control process that allows management to decide whether organizational activities need adjustment Technology The level of scientific sophistication in plant, equipment, and skills in the conversion process. Contd. …The operations system in Organizations
  • 5. Value-Added The difference between the cost of inputs and the value or price of outputs. Contd. …The operations system in Organizations Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Control Feedback Feedback Feedback Value added
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  • 8. II. Manufacturing operations Versus Service operations A conversion process that includes manufacturing (or production) yields a tangible output: a product. In contrast, a conversion process that includes service yields an intangible output: a deed, a performance, an effort.
  • 9. Steel production Automobile fabrication Home remodeling Retail sales Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing High percentage goods Low percentage service III. Goods-service Continuum Low percentage goods High percentage service
  • 10. IV. Manufacturing vs Service Characteristic Manufacturing Service Output Customer contact Uniformity of input Labor content Uniformity of output Measurement of productivity Opportunity to correct Tangible Low High Low High Easy High Intangible High Low High Low Difficult Low quality problems High
  • 11. V. Management-Process Management Process Management One of several theories of classical management, emphasizing management as a continuous process of planning, organizing and controlling to influence the other’s actions. Planning Controlling Organizing
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  • 13. VI. Operations Management Defined Operations Management Management of the conversion process, which converts land, labour, capital and management inputs into desired outputs of goods and services.
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