OM_lesson-week-1-1A.pptx

Introduction to Operations Management An overview of key concepts and importance.  What is Operations Management? Operations Management (OM) involves planning, organizing, and supervising processes to improve efficiency and effectiveness. Is the set of activities tha...

Introduction to Operations Management An overview of key concepts and importance.  What is Operations Management? Operations Management (OM) involves planning, organizing, and supervising processes to improve efficiency and effectiveness. Is the set of activities that creates value in the form of goods and services by transforming inputs into outputs Activities creating good and services take place in all organizations.  SCOPE Strategic decision-making in production and services Process improvement for efficiency and cost reduction Managing people,  Its IMPORTANCE plays a vital role in ensuring the efficiency, productivity, and profitability of businesses. It involves planning, organizing, and optimizing processes to create high-quality products and services while minimizing costs and maximizing customer satisfaction. Efficiency vs. Effectiveness  KEY I. OBJECTIVES Efficient Resource Utilization(ERU) ensures that resources—such as labor, raw materials, and technology—are used effectively to minimize waste and maximize output. Proper planning and process optimization help businesses reduce costs and increase efficiency. II. Cost Reduction and Profit maximization (CRPM) While cost reduction lowers expenses, excessive cost- cutting can hurt quality, innovation, and customer satisfaction. A company must find a balance between reducing costs and maintaining effectiveness to sustain long-term profitability. Best Practices: ✅ Invest in technology to automate tasks and reduce long-term costs. ✅ Focus on efficiency without compromising quality. ✅ Continuously analyze financial data to identify areas for improvement. ✅ Enhance customer experience to ensure loyalty and repeat sales. III. Quality Improvement and Customer Satisfaction Quality Improvement is a systematic, continuous effort to enhance the processes, products, or services offered by an organization. By identifying inefficiencies, reducing defects, and streamlining (QICS) operations, businesses can deliver better value to their customers. Key Aspects of Quality Improvement: Total Quality Management (TQM): A holistic approach that involves all members of an organization in continuously improving processes, products, and services. Six Sigma: A data-driven methodology aimed at reducing defects and variability in processes to achieve near-perfect performance. Lean Management: Focuses on eliminating waste, improving process flow, and increasing efficiency. Continuous Improvement (Kaizen): A culture where employees at all levels are encouraged to suggest and implement incremental Customer Satisfaction refers to how well a company’s products or services meet or exceed customer expectations. High levels of customer satisfaction lead to customer loyalty, positive word-of-mouth, and ultimately, long-term profitability. Linking Quality Improvement to Customer Satisfaction: Enhanced Product/Service Quality: When quality improvement initiatives are successful, customers receive products or services that are reliable, effective, and safe. This directly boosts their satisfaction. Reduced Complaints and Returns: Improvements in quality lead to fewer defects and issues, which reduces the number of customer complaints and returns. Trust and Loyalty: Consistently high quality builds trust with customers, encouraging repeat business and fostering long- term relationships. Competitive Advantage: Companies known for quality are often preferred over competitors, allowing them to command premium pricing and greater market share. Thank you!