Professional Documents
Culture Documents
S1 - Introduction To Operations Management
S1 - Introduction To Operations Management
Learning Objectives
What is Operations Management ?
Why is it important ?
What do operations Managers do ?
Evolution of Operations Management
Finance
Marketing
Operations
Operations
Business Organization
Organizational Chart
Commercial Bank
Operations
Teller
Scheduling
Check clearance
Transaction
Processing
Vault operations
Maintenance
Security
Finance
Investments
Security
Real Estate
Marketing
Loans
Personal
Organizational Chart
Airline
Operations
Ground support
equipment
Maintenance
Ground operations
Catering
Crew Scheduling
Finance /
Accounting
Accounts
Payables
Receivables
General Ledger
Cash Control
Marketing
Traffic
Administration
Reservation
Schedules
Tariff Schedule
Organizational Chart
Manufacturing
Operations
Facilities
Production and
Inventory control
Supply chain
management
Design
Finance/Accounting
Disbursements/cred
it
Receivables
Payables
General Ledger
Funds Management
Marketing
Sales promotion
Advertising
Sales
Market Research
Inputs
Tangible
Intangible
Transformation
Process
Goods
Feedback
Feedback
Feedback
Control
Services
Transformation
Outputs
Land
Processes
High goods
percentage
Cutting
Drilling
Teaching
Houses
Automobiles
Clothing
Computers
Capital
Farming
High service
percentage
Raw Material
Energy
Water
Wood
Metals
Equipment
Machines
Computers
Healthcare
Entertainment
Car repair
Delivery
Banking
Hospital
Inputs
Processing
Output
Raw materials
Water
Energy
Labor
Metal sheets
Building
Equipments
Cleaning
Making Cans
Cutting
Cooking
Packing
Labeling
Canned
Vegetables
Inputs
Processing
Output
Doctors, Nurses
Hospital
Medicine
Supplies
Equipment
Laboratories
Examination
Surgery
Monitoring
Medication
Therapy
Treated Patients
Goods
Services
Output
Goods oriented
(Tangible)
Low degree
Act oriented
(Intangible)
Higher degree
Degree of
customer
contact
Uniformity of
inputs
Uniformity of
output
Highly variable
output, slow and
awkward
Measurement
of Productivity
Quality
assurance
Amount of
Inventory
Ability to
patent design
Straightforwar
d, easy
Relatively
easy
More
inventory on
hand
Easy to patent
Difficult
Challenging
Substantial
amount of
inventory
Cannot be
patented
Scope of Operations
Management
Historical Evolution of
Operations Management
Industrial Revolution
Began in 1970s
Prior to that products were
made using simple
apprentices by craftsmen
One person is responsible
for the product from start to
finish
Craft production had
emphasis
Simple tools available
Steam engine in 18th century
changed things
Steam was source of power
to drive other machines
Replacement difficult, no
economies of scale
Scientific Management
Father of scientific management
Observation, measurement,
analysis and improvement of
work methods, and economic
incentives
Identify the best method for
doing each job
Believed that management be
responsible for planning,
carefully selecting and training
workers, finding the best way
to perform each job, achieving
cooperation between
management and workers,
and separating management
activities from work activities
Emphasized maximizing
output
Henry Gantt
Henry Gantt
recognized the value
of nonmonetary
rewards to motivate
workers, and
developed a widely
used system for
scheduling, called
Gantt charts
Harrington Emerson
Harrington Emerson
applied Taylors
ideas to organization
structure and
encouraged the use
of experts to improve
organizational
efficiency.
Henry Ford
Introduced mass
production and moving
assembly line
Eli Whitney
Interchangeable parts
The basis for
interchangeable parts
was to standardize
parts so that any part
in a batch of parts
would fit any
automobile coming
down the assembly
line
New challenges in OM
From
Local or national
focus
Batch shipments
Low bid purchasing
Lengthy product
development
Standard products
Job specialization
To
Global Focus
Just-in-time
Supply Chain
Partnering
Rapid product
development,
alliances
Mass customization
Empowered
employees, teams
Environmental Concern
Ethical Conduct
Technology/methods
Facilities/space utilization
Strategic issues
Response time
People/team training
Customer service
Quality
Cost reduction
Inventory Reduction
Productivity Improvement