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Management
Introduction
Operations Management
Operations as a Service
Historical Development of OM
Current Issues in OM
Operations Management
Operations management (OM)
is defined as the design, operation, and
improvement of the systems that create and
Operations Management
OM is concerned with the management of the entire
facilities?
Examples
Transformation Process
A transformation process uses resources to
transform inputs into some desired outputs
Inputs may be raw material, products,
Transformation Process
Transformations
Physical--manufacturing
Locational--transportation
Exchange--retailing
Storage--warehousing
Physiological--health care
Informational--telecommunications
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Organization Chart
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Organization Chart
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Organization Chart
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Operations as services
The new model in industry is that every
added
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Types of services
Core services products correctly made,
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The Importance of OM
Many times neglected
Historical Development OM
1980s Jut-in-time (JIT) and Total Quality Control (TQC)
Historical Development OM
Service Quality and Productivity
Certification
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Historical Development OM
1990 Business Process Reengineering pushed by the
economic recession
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Current Issues in OM
Coordinate the relationships between mutually supportive but
separate organizations.
networks.
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Current Issues in OM
Increased co-production of goods and services
encounter
weapon
Operations Strategy
Sets broad policies and plans for using the resources of a
Operations Strategy
Strategy Process
Example
Customer Needs
More Product
Corporate Strategy
Operations Strategy
Decisions on Processes
and Infrastructure
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Operations Strategy
competitive dimensions
Cost or Price - Make the Product or Deliver the Service Cheap
Quality - Make a Great Product or Deliver a Great Service
Operations Strategy
trade-offs
Reduce costs by
Cost
Flexibility
Delivery
Quality
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Fitting Operational
Activities to Strategy
Company activities relate one another.
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Southwest
Southwest
Due to well paid gate and ground crews and flexible union rules
Limits the type and length of routes, using Boeing 737s only
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OM Strategy Framework
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Review Questions
1. Can a factory be fast, dependable, and flexible; produce high-
a product/service?
3. What are the typical performance measures for quality, speed
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