Professional Documents
Culture Documents
Introduction to Operations
Management
McGraw-Hill/Irwin
Chapter 1: Learning
Objectives
You should be able to:
1. Define the term operations management
2. Identify the three major functional areas of organizations and
describe how they interrelate
3. Identify similarities and differences between production and service
operations
4. Describe the operations function and the nature of the operations
managers job
5. Summarize the two major aspects of process management
6. Explain the key aspects of operations management decision making
7. Briefly describe the historical evolution of operations management
8. Characterize current trends in business that impact operations
management
Student Slides
1-2
Operations Management
What is operations?
The part of a business organization that
is responsible for producing goods or
services
1-3
Good or Service?
Goods are physical items that include raw materials, parts,
subassemblies, and final products.
Automobile
Computer
Oven
Shampoo
Services are activities that provide some combination of time, location,
form or psychological value.
Air travel
Education
Haircut
Legal counsel
Student Slides
1-4
Supply Chain
Supply Chain a sequence of activities and
organizations involved in producing and delivering
a good or service
Suppliers
suppliers
Student Slides
Direct
suppliers
Producer
Distributor
Final
Customers
1-5
Inputs
Land
Labor
Capital
Information
Measurement
and Feedback
Transformation/
Conversion
Process
Outputs
Goods
Services
Measurement
and Feedback
Measurement
and Feedback
Control
1-6
1-7
Scope of Operations
Management
The scope of operations management ranges across
the organization.
The operations function includes many
interrelated activities such as:
Forecasting
Capacity planning
Facilities and layout
Scheduling
Managing inventories
Assuring quality
Motivating employees
Deciding where to locate facilities
And more . . .
Student Slides
1-8
Student Slides
1-9
Financial services
Marketing services
Accounting services
Information services
Student Slides
1-10
Operations manager
Supply chain manager
Production analyst
Schedule coordinator
Production manager
Industrial engineer
Purchasing manager
Inventory manager
Quality manager
Student Slides
1-11
Decision Making
Most operations decisions involve many alternatives that can
have quite different impacts on costs or profits
Typical operations decisions include:
What: What resources are needed, and in what amounts?
When: When will each resource be needed? When should the
work be scheduled? When should materials and other supplies be
ordered?
Where: Where will the work be done?
How: How will he product or service be designed? How will the
work be done? How will resources be allocated?
Who: Who will do the work?
Student Slides
1-12
Historical Evolution of OM
Industrial Revolution
Scientific Management
Human Relations Movement
Decision Models and Management
Science
Influence of Japanese Manufacturers
Student Slides
1-13
Economic conditions
Innovating
Quality problems
Risk management
Competing in a global economy
Student Slides
1-14
1-15