Five Major Activities of Management
: Planning, Analyzing, Organizing, Directing/Implementing, Controlling.
The Impact of Pace
: Dimensions of pace—rate of new product intros- rate of new process tech. intros- rate of new players;
Consequences—Organization structure- Strategic process- Manf process.
What is OM
: OM transforms factors of production into goods or services of higher value—Business process of the firm; OM is
involved in doing or supporting the four core sets of business processes
- Determining customer needs- Developing product
strategy (product innovation)-
Managing the entire supply chain-
Managing non-value adding support activities.
Implications of the Business Process Perspective
: Operations managers must maintain a cross functional perspective-
Concern about pleasing the customer- A resource balancing act: things, humans and info- Wear many hats- The one sixth
perspective: Profit= MS1xMS2xMS3 (market size, market share, margin on sales(price-cost))
Future OM Function Challenges: -
Increased customer involvement- Globalism- Managing an integrated supply chain in a
world of uncertainty and danger- New product/process technologies- Intellectual property challenge- Deflation/ inflation and or
OM: --Evolution of strategy- know thy enemy/know thy customer—Forces impacting strategy formulation- IT/e-
commerce- Increase customer participation/demands- Market opportunities may be limited—Two Basic Approaches- Focus on
your core competencies- Demand innovation- investigate your customers’ total needs and expand your product offering scope.
Sequential or Simultaneous Process- Pace will determine the feasibility—Bureaucratic approaches-
Kawasaki’s card system- The OPJ: Three levels (Organization, Process, Job) Within each level (Goals, Design, Management).
Value is: -the customer’s subjective evaluation- adjusted for cost- of how well a product meets expectations—
Four key terms: -What is a customer?- What is a subjective evaluation?- What is meant by product?- What are expectations?
What is a Customer
: Types of customers- Consumers are the persons the product intends to satisfy. Need satisfaction is the
goal.- Customers are individuals buying the product (consumer, buying for the consumer, supply chain player, next operations)-
Other Classifications (Buyers, Intermediate customers, Internal customers)
What is a Subjective Evaluation
: --Customers normally are people. The consumer might be another person, an org, or your
pet—People are unique and what often contributes to their uniqueness is the ways they process units.
The Value Equation
: Value= Performance/Cost—Performance is a function of (Functionality, Quality, Speed, Timeliness,
: - To what extent did the product satisfy a need?- To what extent did the product meet or exceed
the customer’s expectations—