Operations Management Notes PDF

OPERATIONS MANAGEMENT AND TQM C. The Role of Operations Management in the Organization UNIT 1 LESSON 1: ​ ​ ORGANIZATION Understanding Operations Manage...

OPERATIONS MANAGEMENT AND TQM C. The Role of Operations Management in the Organization UNIT 1 LESSON 1: ​ ​ ORGANIZATION Understanding Operations Management, and The Role of ○​ PERSON RESPONSIBLE: CEO or PRESIDENT Operations Management in the Organization ○​ Oversee the overall performance and A. Core Goals of a Successful Business​ success of the organization. ​ In their 2016 book "Marketing Management," Kotler ○​ Represent the company to stakeholders and and Keller outline several core business goals: the public. ○​ Drive innovation and pursue new business ​ Customer Satisfaction: This is a fundamental goal, as opportunities. satisfied customers are more likely to repeat ○​ Ensure ethical and responsible business purchases, become loyal brand advocates, and practices. provide valuable feedback. ​ Profitability: Businesses must generate profits to 3 STRATEGIC FUNCTIONS OF AN survive and thrive. ORGANIZATION ​ Market Share: Gaining and maintaining a significant market share can provide competitive advantages, ​ OPERATIONS economies of scale, and increased bargaining power. ○​ PERSON RESPONSIBLE: COO ​ Brand Equity: Brand equity encompasses factors like ○​ framework and central core function. brand awareness, brand loyalty, and perceived ○​ support the overall organization strategy. quality, which can differentiate a company from its ○​ manages the process of creation of goods competitors. and services. ​ Customer Lifetime Value (CLTV): By maximizing CLTV, ○​ involves planning, organizing, coordinating, companies can prioritize customer retention and and controlling all the resources (people, loyalty over short-term gains. equipment, technology, information) ​ Innovation: Continuous innovation is crucial for ​ MARKETING staying ahead of the curve. ○​ responsible for sales, generating customer ​ Social Responsibility: Companies that prioritize demand, and understanding customer social responsibility can build stronger relationships wants and needs. with customers and enhance their brand image. ○​ represents the business to the outside world, ensuring it stands out and attracts B. What is Operations Management? customers. ​ Management of processes that transform inputs into ​ FINANCE goods and services that add value for the customer. ○​ PERSON RESPONSIBLE: CFO (Input-Process-Output Model) ○​ channeling resources to where they are ​ Impacts an organization's SHORT-TERM and needed most. LONG-TERM capabilities. ○​ manages the flow, ensuring no leaks ​ The objectives of operations management are to: (wastage) and maintaining balance to keep ○​ Maximize efficiency the business running smoothly and ○​ Ensure quality sustainably. ○​ Meet customer demands ○​ responsible for managing cash flow, current ○​ Increase flexibility assets, and capital investments. ○​ Drive innovation ​ MANAGEMENT INFORMATION SYSTEM ○​ Achieve sustainability (MIS) ​ OM Activities include: ○​ PERSON RESPONSIBLE: CIO ○​ Production Planning ○​ not part of the 3 strategic functions ○​ Supply Chain Management ○​ manages flows of information. ○​ Quality Control ○​ connects every department with ○​ Process Improvement information. ○​ without this, an organization may be functional but inefficient. D. BUSINESS OPERATION OVERLAP ​ refers to the interconnectedness and shared responsibilities among different departments within a company ​ departments rely on each other's information and actions to achieve overall business goals ​ Example: Gardenia Philippines ​ New Product: Marketing identifies a need → Operations develops the product & packaging → Finance budgets development & production. ​ Sales Forecast: Marketing projects sales increase → Operations adjusts production & distribution → Finance adjusts budget & revenue projections. ​ New Market: Marketing expands to new area → Operations optimizes delivery routes → Finance budgets increased distribution costs.