Operational

management

•Students: Francisco Quinto-Marco Salas-

Pedro Camino-José Gavica
•Teacher: Lcda. Lorena Quiñonez
•Course: 1st “International Business”
Introduction to Operations
Management

• Definition: Operations Management (OM)

involves the planning, organizing, and
supervising of processes, and it is a critical
area in both manufacturing and service
industries.

• Importance: OM ensures that business

operations are efficient, using as few
resources as needed, and effective in terms
of meeting customer requirements.

• Key Objectives: The main objectives of OM

are to improve productivity, ensure quality,
reduce costs, and enhance flexibility.

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Operations
Strategy
• Aligning Operations with Business
Strategy: Operations strategy involves
aligning the operations function with the
overall business strategy to achieve
competitive advantage.

• Competitive Priorities: Key competitive

priorities include cost, quality, time, and
flexibility. These priorities guide decision-
making in operations.

• Frameworks and Models: Frameworks

such as the Balanced Scorecard and
Porter's Value Chain are used to develop
and implement effective operations
strategies.

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Process Design

• Types of Processes: Processes can

be broadly categorized into
manufacturing and service
processes, each with unique
characteristics and requirements.

• Process Mapping and Analysis:

Tools like flowcharts, process
maps, and value stream maps are
used to visualize and analyze
processes for improvement.

• Process Optimization: Process

optimization involves techniques
such as Lean, Six Sigma, and Total
Quality Management to enhance
efficiency and effectiveness.

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Capacity Planning
• Importance of Capacity Planning:
Capacity planning ensures that an
organization can meet future demand
without delay, maintaining optimal
operation efficiency.

• Methods and Techniques: Common

methods include lead strategy, lag
strategy, and match strategy, which help
balance capacity and demand.
• Capacity Utilization: This metric
measures the extent to which an
enterprise uses its installed productive
capacity and is crucial for efficiency.

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Supply Chain
Management
• Components of Supply Chain: The supply
chain includes suppliers, manufacturers,
warehouses, distribution centers, and
retailers, all working together to deliver
products to consumers.

• Supply Chain Coordination: Effective

coordination between all parts of the
supply chain is essential to reduce costs
and improve efficiency and
responsiveness.

• Technology in Supply Chain: Technologies

like IoT, AI, and blockchain enhance
visibility, transparency, and efficiency in
the supply chain.

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Inventory
Management
• Types of Inventory: There are various
types of inventory including raw materials,
work-in-progress, finished goods, and MRO
(maintenance, repair, and operating
supplies).

• Inventory Control Techniques: Techniques

such as Just-in-Time (JIT), Economic Order
Quantity (EOQ), and ABC analysis help in
managing inventory efficiently.

• Inventory Management Systems: Modern

inventory management systems use
software to track inventory levels, orders,
sales, and deliveries, ensuring accuracy
and efficiency.

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Quality
Management
• Definition and Importance of Quality:
Quality management ensures that an
organization's products or services are
consistent and meet customer
expectations.

• Tools and Techniques for Quality Control:

Common tools include Six Sigma, Total
Quality Management (TQM), and ISO
standards, which help in maintaining high
quality levels.

• Continuous Improvement: Continuous

improvement (Kaizen) focuses on
constantly improving processes to
enhance quality and efficiency.

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Lean Operations
• Principles of Lean: Lean operations focus
on minimizing waste and maximizing value
by optimizing processes and removing non-
value-added activities.

• Implementing Lean in Operations:

Techniques such as Value Stream Mapping,
5S, and Just-in-Time (JIT) are used to
implement lean principles in operations.

• Benefits of Lean Operations: Lean

operations lead to reduced costs, improved
quality, faster delivery times, and
enhanced customer satisfaction.

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Technology in
Operations
• Role of Technology: Technology plays a
crucial role in enhancing operational
efficiency, enabling automation, and
providing real-time data for decision-
making.

• Recent Trends: Current trends include the

adoption of AI, IoT, and blockchain
technology to improve transparency,
traceability, and efficiency in operations.

• Future Outlook: The future of operations

management will likely see increased
integration of advanced technologies,
leading to smarter, more adaptive
operations.

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Conclusion
• Summary of Key Points: Operations Management is
crucial for the efficiency and effectiveness of both
manufacturing and service organizations. Key areas
include process design, capacity planning, supply chain
management, inventory management, quality
management, lean operations, and the use of technology.

• Future Trends: Future trends in Operations Management

will involve greater integration of advanced technologies
like AI, IoT, and blockchain to enhance transparency,
efficiency, and responsiveness.

• Final Thoughts: By focusing on these key aspects,

organizations can improve their operational performance,
reduce costs, and achieve competitive advantage.

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