Professional Documents
Culture Documents
Strategic Role and Objectives of Operations Management: Om: Session 1 &2
Strategic Role and Objectives of Operations Management: Om: Session 1 &2
Strategic Role and Objectives of Operations Management: Om: Session 1 &2
Value Added
Inputs: Outputs:
Land Transformation Goods
Labour Process Services
Capital
Feedback
Control
Feedback Feedback
The Transformation Process
Goods & Services
• Manufacturing • Services
• Tangible product • Intangible product
• Product can be • Product cannot be
inventoried inventoried
• Low customer contact • High customer contact
• Longer response time • Short response time
• Capital intensive • Labor intensive
• Opportunity to correct • Opportunity to correct
quality problems before quality is low,
delivery to customer is
high,
On the other hand…
Auto repair
Appliance repair
Maid Service
Manual car wash
goods
Teaching
Lawn mowing
• Automobile assembly
factory – Operations
management uses machines to
efficiently assemble products
that satisfy current customer
demands.
•Advertising agency –
Operations management uses
our staff ’s knowledge and
experience to creatively
present ideas that delight
clients and address their real
needs.
Responsibilities of Operations
Management
• To add value
5. Layout strategy
How should we arrange the facility?
How large must the facility be to meet
our plan?
6. Human resources and job design
How do we provide a reasonable work
environment?
How much can we expect our
employees to produce?
The Ten Critical Decisions
7. Supply-chain management
Should we make or buy this
component?
Who should be our suppliers and how
can we integrate them into our
strategy?
8. Inventory, material requirements
planning, and JIT
How much inventory of each item
should we have?
When do we re-order?
The Ten Critical Decisions