01-Introduction.pdf - OPIM 301 Operations Management...

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OPIM 301 Operations ManagementChapter 1 Introduction LO1-1: Identify the elements of operations and supply chain management (OSCM). LO1-2: Know the potential career opportunities in operations and supply chain management. LO1-3: Recognize the major concepts that define the operations and supply chain management field. LO1-4: Evaluate the efficiency of a firm. Mümtaz KarataşWhat is Operations Management 1-2 OM is the management of processes or systems that create goods and/or provide services. Detail the following OM activities for each company OM Activities Airline company (services) Bicycle factory (goods) Forecasting Capacity planning Scheduling Managing inventories Assuring quality Motivating employees Where to locate facilities
Why study Operations Management? OM activities are at the core of all business organizations A large percentage of a company’s expenses occur in OM area (OM is such a costly part of any organization) A large number of all jobs are in OM area (purchasing, quality, planning, scheduling, inventory, etc) Activities in all other areas( finance, marketing) are interrelated with OM activities 1-3 Three basic functions Operations: responsible for the creation of goods and services Finance: responsible for the provision of funds and the economic analysis of investment proposals Marketing: responsible for promoting the goods/services of the organization and for assessing customer wants and needs 1-4 Operations Marketing Finance OperationsFinance/AccountingMarketingGroundSupportFlightOperationsFacilityMaintenanceCateringAirline Company
Operations function 1-5 Inputs: Land Labour Capital Transformation Process Outputs: Goods Services Control Feedback Feedback Feedback Value Added Process One or more activities that transform inputs into outputs. Processes are used to implement the strategy of the firm.1-6
Transformation process at a Food Processor 1-7 Inputs Process Output Raw Vegetables Metal Sheets Water Energy Labour Building Equipment Cleaning Making cans Cutting Cooking Packing Labelling Canned vegetables Transformation process at a Hospital 1-8 Inputs Process Output Doctors Nurses Building Medical supplies Equipment Labs Examination Surgery Monitoring Medication Therapy Healthy patients
Goods and Services occur jointly1-9 Goods-service continuum Goods and Services occur jointly Almost any product offering is a combination of goods and servicesPure goods industries add serviceEx: provide logistical help for stocking items, maintain databases, consulting advice Core goods providers add serviceEx: automobile manufacturers provide spare parts distribution services Core service providers add tangible goodsEx: cable TV company provides cable hookup and cable boxes Pure service providers add tangible goods Ex: financial consulting firms provide textbooks, references, spreadsheets 1-10
Goods and Services occur jointly 1-11 Steel production Automobile fabrication House building Road construction Dressmaking Farming Auto repair

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