IPS OM 2012 Chap 1

Generated by Foxit PDF Creator © Foxit Software
http://www.foxitsoftware.com For evaluation only.
Islamic University of Gaza - Palestine

Department of Industrial Engineering
Assistant Prof. Abed Schokry
Integrated Production Systems
First Semester 2011- 2012
Operations Management For Competitive

Advantage
CHASE AQUILANO JACOBS
McGraw Hill Higher Education, ninth edition
1
Chapter 1
Introduction to Operations Management

Chapter 1: Learning Outcomes
• You should be able to:
– Define the term operations management
– Compare and contrast service and manufacturing operations
– Describe the operations function and the nature of the
operations manager’s job
– Identify the two major aspects of process management
– Describe the key aspects of operations management decision
making
– Briefly describe the historical evolution of operations
management
– Identify current trends in business that impact operations
management
2

Overview: Introduction to the Field
• Operations Management
• Why Study Operations Management?
• Production System Defined
• Operations as a Service
• Plan of This Book
• Historical Development of OM
• Current Issues in OM

What is Operations Management?
Operations management (OM) is defined as the design,
operation, and improvement of the systems that create and
deliver the firm’s primary products and services.
3

What is Operations Management? (Cont.)
What is operation?
– The part of a business organization that is responsible for
producing goods or services
• How can we define operations management?

– The management of systems or processes that create goods
and/or provide services

Role of the Operations Manager
The Operations Function consists of all activities directly related to

producing goods or providing services.
A primary function of the operations manager is to guide the

system by decision making.
– System Design Decisions
– System Operation Decisions
4

Why Study Operations Management?
Systematic Approach
to Org. Processes
Business Education Operations Career Opportunities

Management
Cross-Functional
Applications
What is a Production System?
A production system is defined as a user of resources to
transform inputs into some desired outputs.
5

Transformations
• Physical--manufacturing
• Locational--transportation
• Exchange--retailing
• Storage--warehousing
• Physiological--health care
• Informational--telecommunications

Good or Service?
Goods are physical items that include raw materials, parts,

subassemblies, and final products.
• Automobile, Computer, Oven, Shampoo
Services are activities that provide some combination of

time, location, form or psychological value.
• Air travel, Education, Haircut, Legal counsel
6

What is a Service and What is a Good?
• “If you drop it on your foot, it won’t hurt you.” (Good or

service?)
• “Services never include goods and goods never include

services.” (True or false?)

Core Services Definition
Core services are basic things that customers want from

products they purchase.
7

Core Services Performance Objectives
Quality
Flexibility
Operations Speed
Management
Price (or cost

Reduction)

Value-Added Services
Value-added services differentiate the organization from

competitors and build relationships that bind customers to
the firm in a positive way.
8

Value-Added Service Categories
Problem Solving
Information
Operations Sales Support
Management
Field Support

I. Operations Strategy 1. Introduction
and Managing Change to OM
2. Operations 3. Project
Strategy and Managemen
Competitiveness t
II. Product Design

and Process III. Supply 8. Supply
Selection Chain Design Chain Strategy
9. Strategic 10. Just-in-Time

4. Understanding Capacity Outsourcing and Lean
Processes Management Systems
Plan of This Book
5. 6. Service
Manufacturing Products and IV. Planning and 11. Forecasting
Product & Process Design Controlling the
Process Des. Supply Chain
12. Aggregate
Planning
V. Revising
7. Quality the System
Managemen 13. Inventory 14. Materials
t Control Requirements
Planning
16. Consulting and 17.
Reengineering Synchronous
Manufacturing
& Theory of
Constraints
9

Historical Development of OM
• JIT and TQC.
• Manufacturing Strategy Paradigm.
• Service Quality and Productivity.
• Total Quality Management and Quality Certification.

Historical Development of OM (cont’d)
• Business Process Reengineering.
• Supply Chain Management.
• Electronic Commerce.
10

Current Issues in OM
• Effectively consolidating the operations resulting from

mergers.
• Developing flexible supply chains to enable mass

customization of products and services.
• Managing global supplier, production and distribution

networks.
• Increased “commiditization” of suppliers.
• Achieving the “Service Factory”.
• Achieving good service from service firms.

Scope of Operations Management
MIS: Management
Information System
HRM: Human
Resources
Management
QA: Quality
Assurance
11

Why Manufacturing Matters
• Over 18 million workers in manufacturing jobs

• Accounts for over 70% of value of U.S. exports
• Average full-time compensation about 20% higher than average
for all workers
• Manufacturing workers more likely to have benefits
• Productivity growth in manufacturing in the last 5 years is more
than double that of the U.S. economy

Why Study OM?
• Every aspect of business revolves around operations
• Many service jobs are closely related to operations

– Financial services
– Marketing services
– Accounting services
– Information services
• There is a significant amount of interaction and collaboration

amongst the functional areas
• It provides an excellent vehicle for understanding the world in

which we live
12
Career Opportunities in OM
• Industrial engineer
• Operations manager
• Production manager
• Inventory manager
• Quality analyst and or Quality manager
• Production analyst
• And others

OM-Related Professional Societies in USA
• APICS - The Association for Operations Management

• American Society for Quality (ASQ)
• Institute for Supply Management (ISM)
• Institute for Operations Research and Management Science
(INFORMS)
• The Production and Operations Management Society (POMS)
• The Project Management Institute (PMI)
• Council of Supply Chain Management Professionals (CSCMP)
13

Decision Making
• Most operations decisions involve many alternatives that can

have quite different impacts on costs or profits
• Typical operations decisions include:
– What: What resources are needed, and in what amounts?
– When: When will each resource be needed? When should the work
be scheduled? When should materials and other supplies be
ordered?
– Where: Where will the work be done?
– How: How will he product or service be designed? How will the
work be done? How will resources be allocated?
– Who: Who will do the work?
End of Chapter 1
14

IPS OM 2012 Chap 1

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

IPS OM 2012 Chap 1

Загружено:

Авторское право:

Доступные форматы

Generated by Foxit PDF Creator © Foxit Software

http://www.foxitsoftware.com For evaluation only.

Islamic University of Gaza - Palestine

Assistant Prof. Abed Schokry

Integrated Production Systems

First Semester 2011- 2012

Islamic University of Gaza - Palestine

Operations Management For Competitive

CHASE AQUILANO JACOBS

McGraw Hill Higher Education, ninth edition

Islamic University of Gaza - Palestine

Introduction to Operations Management

Islamic University of Gaza - Palestine

Islamic University of Gaza - Palestine

Islamic University of Gaza - Palestine

Operations management (OM) is defined as the design,

operation, and improvement of the systems that create and

deliver the firm’s primary products and services.

Islamic University of Gaza - Palestine

• How can we define operations management?

Islamic University of Gaza - Palestine

The Operations Function consists of all activities directly related to

A primary function of the operations manager is to guide the

Islamic University of Gaza - Palestine

Business Education Operations Career Opportunities

Islamic University of Gaza - Palestine

What is a Production System?

A production system is defined as a user of resources to

transform inputs into some desired outputs.

Islamic University of Gaza - Palestine

Islamic University of Gaza - Palestine

Goods are physical items that include raw materials, parts,

• Automobile, Computer, Oven, Shampoo

Services are activities that provide some combination of

• Air travel, Education, Haircut, Legal counsel

Islamic University of Gaza - Palestine

• “If you drop it on your foot, it won’t hurt you.” (Good or

• “Services never include goods and goods never include

Islamic University of Gaza - Palestine

Core services are basic things that customers want from

Islamic University of Gaza - Palestine

Price (or cost

Islamic University of Gaza - Palestine

Value-added services differentiate the organization from

Islamic University of Gaza - Palestine

Islamic University of Gaza - Palestine

II. Product Design

9. Strategic 10. Just-in-Time

Islamic University of Gaza - Palestine

• JIT and TQC.

• Manufacturing Strategy Paradigm.

• Service Quality and Productivity.

• Total Quality Management and Quality Certification.

Islamic University of Gaza - Palestine

• Business Process Reengineering.

• Supply Chain Management.

Islamic University of Gaza - Palestine

• Effectively consolidating the operations resulting from

• Developing flexible supply chains to enable mass

• Managing global supplier, production and distribution

• Increased “commiditization” of suppliers.

• Achieving the “Service Factory”.

• Achieving good service from service firms.