Operations Management Week 1 (Ch. 1) PDF

Operations Management Prof. Dr. Salaheldin Ismail Dr. Mai Shawky Department of Business Admin. Faculty of Commerce & Business Admin. Helwan University Week one (Lecture One): Fall - 2024...

Operations Management Prof. Dr. Salaheldin Ismail Dr. Mai Shawky Department of Business Admin. Faculty of Commerce & Business Admin. Helwan University Week one (Lecture One): Fall - 2024 1  Week One Chapter One Introduction to Operations Management 2  Management - Operations Management refers to the secret of running business at a high level of efficacy. An operation refers to any activity, task, duty or process that adds value. 3  Core Organizational Functions Marketing – Gets customers Operations – creates product or service Finance – Obtains funds – Tracks money. 4 Role of OM within an Organization 5  What Is Operations Management? Operations Management can be defined as: Managing the conversion processes which transform specific inputs such as raw material and facilities into the desired outputs in the form of finished goods and services. Inputs Outputs (customers Transformation Process (goods and/or (components) and materials) services) 6 Also, Operations Management can be defined as the management of systems or processes that create goods and/or provide services. Moreover, it can be defined as the way in which an organization produces goods or/and provides services. 7  Generic Definition The systematic planning, design, direction and control of activities that convert specific inputs into goods and services for internal, as well as external customers. 8  Manufacturing, Production & Operation Manufacturing is the creation of goods such as a car, a watch etc. Production is the act of producing goods (such as a data show) and providing services (such as: a healthcare) in the right quantity, at the right time, at the right price, at the right quality & at the right place. Operation is the creation and delivery of goods & services with ensuring the best use of company resources. 9 The differences between PM & OM 10 Important Concepts Operations Function Operations Mgt. Operations Managers. 11  The Operations Function: Consists of all activities directly related to producing goods or providing services 12  Operations Management Is the term that is used for the activities, decisions and responsibilities of operations managers. 13  Operations Mangers Are the staff of the organization who have responsibility for managing (make decisions) the resources which comprise the operations function. 14 The Transformation System within OM 15  Types of Types Inputs of Inputs Transformed Resources: - Materials - Information Transforming Resources: - Facilities - Staff 16  Types of Processes Process: Any activity that takes one or more inputs, transforms, and adds value to them, and provides one or more outputs for its customers. – Physical: manufacturing – Locational: transportation – Exchange:retailing – Storage: warehousing – Physiological: health care – Informational: telecommunications 17  Types of Outputs Goods Services 18  Differences Between Goods and Services 1. Tangibility 2. Storability 3. Transportability 4. Customer contact 5. Quality 6. Simultaneity 19  Example - Food Processor Inputs Processing Outputs Raw Vegetables Cleaning Canned Metal Sheets Making cans vegetables Water Cutting Energy Cooking Labor Packing Building Labeling Equipment 20  Input-Transformation-Output Relationships for Typical Systems 21 Importance of OM - Value-Added The difference between the cost of inputs and the value or price of outputs. Value added Inputs Transformation/ Outputs Land Conversion Goods Labor process Services Capital Feedback Control Feedback Feedback 22  OM’s Contributions to Society Higher Standard of Living – Ability to increase productivity – Lower cost of goods and services Better Quality Goods and Services – Competition increases quality Concern for the Environment – Recycling and concern for air and water quality Improved Working Conditions – Better job design and employee participation 23  Why Study OM?. A student will be able to know, how to: Achieve a product efficacy (Effectiveness ₓ Efficiency). Increase customer satisfaction. Promote creativity and innovation Improve maintenance Plan and control materials. Develop operations strategy. 24  Objectives of OM 1. developing operations strategy. 2. effective utilization of resources 3. reducing cost of production 4. improving product quality 5. fixing time schedule 6. improving after sale services. 25  Scope of Operations Management Operations Management includes: – Operations strategy – Capacity planning – Scheduling – Inventory management – Management of quality – Motivating employees – Just-in-Time – Supply chain management – Deciding where to locate facilities – And more... 26  OM & Decision Making (Decision is a choice made between two or more available alternatives). Operations managers make a number of key decisions that affect the entire organization. These include the following: 27  OM & Decision Making ▪ What: What resources will be 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? When is corrective action needed? ▪ Where: Where will the work be done? ▪ How: How will the product or service be designed? How will the work be done (organization, methods, equipment)? How will resources be allocated? ▪ Who: Who will do the work? 28 The End 29