The Operations Function

Ch. 1
Learning objectives – Ch. 1
 What kinds of positions or titles in an organization are considered
operations managers?
 What is meant by the phrase transformation process? Can you draw this?
 How is operations management defined?
 What do operations managers do?
 What are the major categories of decisions operations managers face?
 Provide examples of each category of decisions.
 What are the primary functional areas in most organizations?
 What is each of the primary functional areas mainly concerned with?
 Provide examples of how each primary functional area interacts with the
others.
 What are examples of supporting functions?
 What’s meant by the phrase cross-functional decision making?
 What’s meant by the phrase silo thinking?
 Describe operations management as a system. Can you draw it?
 Describe the elements of an operations system within its environment.
 What are the contemporary themes in OM? Describe each.
Ops. as a transformation process
 What is meant by “transformation
process?”
 If OM can make processes more efficient
and effective, what is the impact on the
organization?
OM as a productive system
As part of a larger system
The focus of OM: Five eras
1960s Cost and Efficiency
+

1970s Quality
+

1980s Customization and Design

+

1990s Time
+

2000… Service, responsiveness,

value, flexibility
Source: OM (2008). Collier & Evans. South-Western Cengage Learning
Bank operations - examples
Teller scheduling
Check clearing
Collection
Transaction processing
Branch locations
Facilities design/layout
Vault operations
Maintenance
Security
Etc.
Airline operations
Reservation system,
scheduling
Aircraft maintenance
Ground operations
– facilities, food
service, baggage
handling
Flight operations – crew scheduling, dispatching,
route management
Ground support equipment, maintenance
Etc.
Manufacturing
Manufacturing – tooling,
prep, fabrication,
welding, painting,
assembly, testing, etc.
Production/inventory
control, scheduling, ordering, receiving
Set-up processes
Facilities maintenance
Technology – equipment, machinery
Industrial engineering
What’s in it for you?
 We’re arguing that having a solid grasp of
OM principles, techniques, ideas will make
a difference in your career.

Where and how might you expect to use

all this?
Operations decisions
 Process
 Quality
 Capacity
 Inventory

What does an operations manager need to

be able to make these types of decisions?
Operations decisions - examples
 Process
 Quality
 Capacity
 Inventory

What kinds of goals might organizations

have for these decision areas?
Current themes
 Services and manufacturing – the blending
of making and serving
 Customer-directed operations – customer
focus, the “voice of the customer”
 Lean operations – the “war on waste,”
work that does not add value
 Integration of Ops. with other functions –
cross-functional teams, collaborative
decision making
Current themes
 Environmental concerns – “green”
manufacturing and services
 Supply chain management – outside the
walls of your organization
 Globalization of operations – global
customers, suppliers, operations,
employees, competitors, etc.
OM as a productive system
SIPOC Diagram exercise

Source: Rath & Strong’s Six

Sigma Pocket Guide. (2006) Aon