Production and Operation Management PDF

Production and Operation Management Introduction to Operations Manage… Operations management is the management systems...

Production and Operation Management Introduction to Operations Manage… Operations management is the management systems of or processes that create goods and/or provide services. Definition of Operations Manage… It plays a crucial role in a business's ability to compete and impacts a nation's internation- competitiveness. al A supply chain is a sequence of activities and organizations involved in producing and delivering a good or service. Definition of Supply Chain It includes suppliers' suppliers, direct suppli- producers, ers, distributors, and final customers. The Transformation Process The transformation process involves convert- inputs ing (land, labor, capital, information) into outputs (goods and services). Overview of the Transformation Process "Value-added" refers to the difference between the cost of inputs and the value or price of outputs. Feedback involves measurements taken at various points in the transformation pro- Control and Feedback in the Transformation cess. Process Control is the comparison of feedback against established standards to determine if corrective action is needed. Goods vs. Services Goods are tangible items such as raw materials, parts, subassemblies, and final products (e.g., automobiles, computers). Characteristics of Goods They typically have a high degree of uniformity and can be inventoried. Services are activities that provide value through time, location, form, or psychological benefits (e.g., air travel, education). Characteristics of Services They are intangible, often have low unifor- and mity,cannot be inventoried. Production of goods results in tangible outputs, while delivery of services involves acts. Comparison of Production and Delivery Both manufacturing and service operations differ in "what" is done but are similar in it is done. "how" Similarities and Differences Between Production and Service Operations Degree of customer contact Uniformity of input Labor content of jobs Uniformity of output Measurement of productivity Key Differences Production and delivery processes Quality assurance Amount of inventory Evaluation of work Ability to patent design Products are rarely purely goods or purely services; they exist on a continuum. Goods-Service Continuum Examples range from primarily goods (e.g., automobiles) to primarily services (e.g., surg- ery). Importance of Learning Operations Manage… Every aspect of business is affected by operations, including service jobs in fi- marketing, nance, and accounting. Relevance to Business Understanding operations and supply chains enhances comprehension of global dependencies and business success or fail- ure. Major Functional Areas of Organizations Finance: Responsible for securing and allocating financial resources, budgeting, analyzing and investments. Marketing: Focuses on assessing con- Overview of Functional Areas needs sumer and promoting goods and services. Operations: Manages the production of and provision of services. goods Finance and operations overlap in budget- and ing economic analysis. Interrelation of Functional Areas Marketing and operations collaborate demand on data and product design. Operations Management Decision Mak… Operations managers must consider various factors including lead time, quality assurance, and inventory management. Key Aspects of Decision Making Decisions impact the overall efficiency and effectiveness of the organization. Historical Evolution of Operations Management Operations management has evolved various throughphases, adapting to changes in technology, consumer demand, and global competition. Overview of Historical Development Historical milestones include the introduction of assembly lines and advancements in qual- management. ity Current Issues Impacting Operations Manage… Globalization, technological advancemen- and ts, sustainability are key issues affecting operations management today. Overview of Current Challenges Organizations must adapt to changing conditions market and consumer expectations. Supply Chain Management Effective supply chain management is essenti- for al optimizing operations and enhancing customer satisfaction. Importance of Supply Chain Manage… It involves coordinating activities across the supply chain to ensure timely delivery and quality of goods and services. Career Opportunities in Operations Manage… Positions include operations manager, supply chain manager, production analyst, and qual- manager. ity Potential Career Paths Professional societies such as APICS and ASQ provide resources and networking opportuni- for tiesthose in the field.