1 - The Operations Function

1 - The Operations Function - Operations Management...

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Unformatted text preview: Operations Management Operations Contemporary Concepts and Cases The Operations Function Outline Outline Why Study Operations Management? Definition of Operations Management Decisions at Pizza U.S.A. Operations Decisions - A Framework Cross-Functional Decision Making Operations as a Process Contemporary Operations Themes 1-2 Why Study Operations Management? Why Every decision is cross-functional in nature. Operations is a major function in every Operations organization. organization. The principles of process thinking can be The applied across the business. applied Operations Decisions - A Framework Operations Management is an interesting and Operations challenging field of study. challenging 1-3 Definition of Definition Operations Management The operations function of an organization is responsible for producing and delivering goods or services of value to customers of the organization. Operations managers make decisions to manage the transformation process that converts inputs into desired finished goods or services 1-4 Key Points in OM Definition Key 1. Decisions the operations manager must make: • Process, quality, capacity, inventory 2. Functions in the organization. • Operations, marketing, finance 3. Process: planning and controlling the transformation process and its interfaces transformation 1-5 Major Decisions at Pizza USA Decisions A Framework for OM Process – How to produce & deliver Quality – Criteria, measurement & process for achieving Capacity – Physical facilities & labor Inventory – What, when & how much? 1-6 Cross-Functional Cross-Functional Decision Making Operations as the primary function. Operations function. Other primary functions: – Marketing – Finance Supporting functions: all others Major cross-functional decision making Major relationships (See Table 1.2) relationships 1-7 Operations as a Process Process Input Transformation (Conversion) Process Output 1-8 Operations as a Process Process Input Transformation Fabrication Transformation Assembly Output Fabrication: making the parts Assembly: putting the parts together 1-9 Operations as a Process Process (Figure 1.1) (Figure Energy Materials Labor Capital Information Transformation (Conversion) Process Goods or Services Feedback information for control of process inputs and process technology 1-10 Relation of Operations to its Environment Environment (Figure 1.2) SOCIETY Human Resources Suppliers Engineering Marketing Operations transformation system Accounting Finance External Environment CUSTOMERS MIS GOVERNMENT COMPETITORS 1-11 Contemporary Operations Themes Contemporary Service and Manufacturing (differences and Service implications) implications) Customer-Directed Operations Lean Operations Integration of Operations and Other Functions Environmental Concerns and sustainability Supply Chain Management Globalization of Operations 1-12 Summary Summary Why Study Operations Management? Definition of Operations Management Decisions at Pizza U.S.A. Operations Decisions - A Framework Cross-Functional Decision Making Operations as a System Contemporary Operations Themes 1-13 End of Chapter One 1-14 ...
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