Operations Management PDF

Operations Management PREPARED BY: MARJUN MACARIOLA Effectiveness and Efficiency in Management Efficiency(Means) Effectiveness(Ends) Resource Goal Attainment Usage Low Waste High Attain...

Operations Management PREPARED BY: MARJUN MACARIOLA Effectiveness and Efficiency in Management Efficiency(Means) Effectiveness(Ends) Resource Goal Attainment Usage Low Waste High Attainment Management strives for: Low resource waste (high efficiency) High goal attainment (high effectiveness)  Good or Services Goods are physical items that include raw materials, parts, sub- assemblies 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  Supply Chain What is supply chain? - It is a sequence of activities and organizations involved in producing and delivering good or service. Supplier’s Direct Final Producer Distributor supplier Suppliers Customers  The Transformation Process Value-Added Inputs Land Transformation/ Outputs Labor Conversion Goods Capital process Services Information Measurement and Feedback Measurement Measurement and Feedback and Feedback Control Feedback - measurement taken at various points in the transformation process Control – The comparison of feedback against previously established standards to determine if corrective action is needed. OPERATIONS MANAGEMENT What is operations? - The part of a business organization responsible for converting a set of resources into goods and services. How can define operations management? - The management of systems or processes that creates goods and/or services. It involves the responsibility of ensuring that the operations are effective and efficient.  Why Study Operations Management? Every aspect of business affects or is affected by operations. Many service jobs are closely related to operations. - Financial services - Marketing services - Accounting services - Information services Through learning about operations and supply chains you will have a better understanding of: - The world you live in - The global dependencies of companies and nations - Reasons that companies succeed or fail - The importance of working with others  Basic Business Organization Functions ORGANIZATION FINANCE OPERATIONS MARKETING Budgeting Provides the services Assessing consumer Analyzing investment offered by the wants and needs proposals organization. Selling and promoting Provision of funds Produce goods the organizations goods Core of what the or services. organization does.  FINANCE - provide economic analysis for economic proposal. OPERATIONS OPERATIONS - core of what the organization does. MARKETING - responsible for providing the mandate FINANCE MARKETING  PROCESS MANAGEMENT PROCESS are one or more actions that transforms inputs into outputs. BUSINESS PROCESSES UPPER MANAGEMENT PROCESSES - these govern the operation of the entire organization. OPERATIONAL PROCESSES - these are core processes that make up the value system. SUPPORTING PROCESSES - these support the core processes.  Supply and Demand SUPPLY - total amount of goods or services available for consumption. DEMAND - the desire consumers have for goods or services. Supply and demand are the keys to understanding purchasing behavior as well as the way business works.  Supply and Demand Operations and Supply Chains are responsible for meeting the supply. Sales and Marketing are responsible for creating and identifying demand. Supply and Demand PROCESS VARIATION V S R A  VARIETY OF GOODS OR SERVICES BEING OFFERED PRODUCTION/SERVICE REQUIREMENTS BACK STRUCTURAL VARIATION IN DEMAND BACK  RANDOM VARIATION NATURAL ASSIGNABLE VARIATION IDENTIFIABLE SOURCES BACK OPERATION MANAGEMENT SCOPE FORECASTING DECIDING CAPACITY FACILITY LOCATION PLANNING MOTIVATING EMPLOYEES OM FACILITIES AND LAYOUT ASSURING SCHEDULING QUALITY MANAGING INVENTORIES  ROLE OF OPERATION MANAGER OPERATION FUNCTIONS: Activities directly related to producing goods/services. SYSTEM SYSTEM DESIGN OPERATION STRATEGIC TACTICAL OPERATIONAL DECISIONS  OM DECISION MAKING WHAT? WHEN? WHERE? HOW? WHO?