MGM 09 - 14 OCT - MGT 101H Introduction to Management...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
MGT 101H Introduction to Management Functions Operations Management Session 1: October 14 th , 2008 Session 2: October 16 th , 2008 Key Questions • What is operations management? •How i s va lue to the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What is Operations Management? • Operations Management (OM): Efficient and effective activities that create valuable goods and services by transforming inputs into outputs • Foundations of OM – Processes (inputs -> activities -> outputs) – Capacity (level and type of outputs) • The Value Equation: Customers value goods and services according to the following equation: – (Quality + Speed + Flexibility) / cost What Firms sell? • The four main companies I’ve worked for all sell both goods and services: General Motors • Build and sell cars • Finance cars and sell residential mortgages • Provide OnStar to drivers Deloitte • Deliver audits, give tax advice, and consult • Sell various proprietary software packages Carillion • Build hospitals, deliver food to patients, maintain facilities • Dig ditches, move earth, pave roads • Plow snow, patrol highways • Manage projects Wasteco • Transfer station services, product destruction, secure shredding
Background image of page 2
Value-Added Activities of an Operating Manager Operations managers make decisions related to: Where to Operate? – Location of plants, head offices, service sites, cyberspace, etc. – Unique arrangement of activities, equipment, and people to drive efficiencies, increase safety, reduce bottlenecks, and maximize flexibility How to Maximize Quality? – Monitoring and manipulating the operational processes to “build-in” quality from the start How to Produce? – Production method impact on competitiveness (attractiveness to customers) of output Quality Initiatives • Lofty goals like “zero defects” require an integrated system of quality control that utilizes some or all of these approaches: Six Sigma is an approach, made famous by Jack Welsh of GE, of setting and regularly measuring against near-perfect performance targets for all key processes Total Quality Management is an initiative based on the tenants of commitment to quality, total involvement (teamwork), use of statistics, and continuous improvement (a.k.a. Kaizen ) – International Organization for Standardization (ISO) designations (9000 / 14000) prescribe process and documentation standards, and enhance compliance through periodic auditing
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Quality Initiatives (Cont’d) • Other methods to achieve superior quality include: Outsourcing parts of/whole processes reduces costs and streamlines operations, as non-core activities are eliminated,
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

MGM 09 - 14 OCT - MGT 101H Introduction to Management...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online