INTRODUCTION TO OPERATIONS MANAGEMENT

I. What is operations management?

-- Operation: the creation of goods and services

-- Elements of the operations system:

Inputs
Transformation Process
Outputs
Feedback

-- Operations Management: systematic planning, directing, and

controlling of the transformation process

-- Differences between production and service

Tangible products
Make to stock
For sale
Physical transform
Large geographical market
Low customer contact
Capital intensive
Easier quality measurement

II. History of OM
Industrial revolution (1770s-90s) steam engine, division
of labor, interchangeable parts
Scientific management (1910s) time and motion studies,
Gantt chart, coordinated assembly line
Human relations movement (1930s-60s) work environment,
employer-employee relationship, motivation theories
Management science (1947-60s) linear program, simulation,
waiting line theory, decision theory, PERT/CPM, MRP
Japanese production system (1970s-80s) Lean production,
JIT, TQM
Computer in OM (1970's - )- CAD/CAM, FMS, CIM
New challenges in OM - the service economy, environment
awareness

-- Recent Trend
Global Marketplace
Total Quality Management, Worker Involvement
Corporate Downsizing, Business Reengineering, Lean Production
Flexibility, Time Reduction
 Technology
Environmental Issues
Supply-chain Management
Outsourcing

III. Why study OM?

-- Three major functions of any organization:
Marketing - create demand, identify markets, etc.
Finance/Accounting - track performance, pay bills, collect
revenue, etc
Operations - create products

-- To find out HOW goods and services are created.

-- Operations cost the most for any organization

-- To examine career opportunities in OM.

IV. The productivity challenge and OM

-- Definition:

-- Can be difficult to measure, especially for service industry

-- Productivity increases improve standard of living

-- Productivity variables:
Labor health, skill, education, training, knowledge
Capital investment in equipment and technology
Management effective use of labor, capital, and technology

-- Factors that affect the US productivity growth:

Education
Capital and technology investment
The service sector

-- Components of OM Mission and Strategy

Quality management Product design

Process design Location
Layout Human resources and job design
Purchasing Scheduling
Inventory Reliability and maintenance

V. OM Related Jobs