Chapter_7 - Business Management: A Malaysian Perspective...

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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 1
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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 2 Operations Management CHAPTER
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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 3 LEARNING OBJECTIVES ± Explain what is operations management. ± Relate operations management as a competitive tool for business. ± Discuss production system in services as well as manufacturing environment. At the end of this chapter, students will be able to:
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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 4 LEARNING OBJECTIVES (CON’T) ± Describe the historical development of operations management in organizations. ± Describe manufacturing-based inventory system. ± Elaborate quality control and supply-chain management. At the end of this chapter, students will be able to:
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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 5 OPERATIONS MANAGEMENT Operations Management deals with the: Design Direction Control Integration Improvement of the processes that transforms inputs into products and services, or in short, the production systems.
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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 6 OPERATIONS MANAGEMENT Like other functional fields of business such as marketing and finance Main goal is to ensure efficient transformation of production inputs to outputs Can be applied in all functional areas Operations are doing of work for things like superior quality, speed-to-market, low cost, or customization.
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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 7 VALUE ADDING OF OPERATIONS MANAGEMENT INPUTS Material Machines Labour Management Capital OUTPUTS Goods Services TRANSFORMATION PROCESS Design, direction, control, integration, and improvement of productive system Value adding
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Business Management: A Malaysian Perspective © Oxford University Press Malaysia, 2008 All Rights Reserved 7– 8 OPERATIONS MANAGEMENT (CON’T) Operations managers design systems, source materials, plan work schedule, ensure quality, arrange shipment, produce products, and deliver services Operations decisions can be classified as either strategic or tactical in nature Strategic decisions are long-term and have long-term consequences
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© Oxford University Press Malaysia, 2008 All Rights Reserved 7– 9 OPERATIONS MANAGEMENT (CON’T) Strategic decisions are also less structured
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Chapter_7 - Business Management: A Malaysian Perspective...

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