CHAPTER 1 :

INTRODUCTION TO OPERATIONS MANAGEMENT

LEARNING OBJECTIVES
Define Operations management.
Discuss three basics components of Operations Management.
Determine the objectives of Operations management.
Discuss the characteristics of products and services.
Understand the concept of production / operations system.
Discuss the roles of operations manager.
Discuss the relationship of operations and other function.
DEFINITIONS
Products
Production/Operations
Operations Management
INTRODUCTION
SERVICES
PRODUCTS
OPERATION
S
OPERATIONS SYSTEM MODEL
Transformation
processes
Surgical procedures/
Administration
medication
Output
Healthy / Death
Feedback
Inputs Patients,
Doctors, Medical
Facilities
OBJECTIVES OF PRODUCTION /
OPERATIONS SYSTEMS
To meet standard and specified standard at minimum cost.
To utilize labor, equipment, and material and other resources efficiently.
To enhance productivity through efficiency of production process
To achieve customer satisfaction.
To produce goods according to demand requirement.
To be an effective producer ;maximize the value of output.
To adapt for future survival.
Characteristics of Services
Intangible outputs
Output cannot be inventoried
Extensive customers contact
Short lead time
Labor intensive
Service quality subjectively
determine



Characteristics of Products
Tangible outputs
Output can be inventoried
Little customers contact
Long lead time
Capital intensive
Product quality objectively
determine



ROLES OF OPERATIONS MANAGER
Planning
Organizing
Leading
Controlling
System & Subsystem
Sime Darby
Finance Marketing Administration Operations
GLOBAL ISSUES IN OM
Mass customization
JIT , Just in Time
Establishing supply chain
Global orientation
Producing environmentally friendly products
Empowering employees
POP QUIZ!!!
Define OM.
State Operations manager duties.
What are the important components in OM ?
State three characteristics of products.
Define system and subsystem and give example.
State three characteristics of services.