Operations Management  Scope of Operations Management in the

Workplace
 Profit is generally the primary goal of
- Customer Service
businesses (Non-profit Organizations as an
- Product or Service Quality
exception) - Correctly-functioning processes
- Market Competitiveness
 3 Basic Functional Areas of a Business - Technological advances
- Finance - Profitability
- Operations - Product Design
- Marketing
 Strategic Areas of Management
 Operations – the part of a business - Strategic Operations Management – Its
organization that is responsible for ultimate purpose is to help an organization
producing goods and/or services. increase performance through improved
 operations is the broadest function of a effectiveness, efficiency, and flexibility
business/ the area that requires the most - Supply Chain Management - involves
manpower managing the flow of materials and
information from suppliers and buyers of
 2 Categories of Organizations in terms of raw materials all the way to the final
operations customer.
- Manufacturing Organizations - Total Quality Management - seeks to
- Service Organizations improve quality by eliminating causes of
product defects and by making quality the
 Manufacturing Vs. Service Organizations responsibility of everyone in the
organization.
Manufacturing Service
 10 Principles of Operations Management
Physical Product Intangible Product
(Schaefer, 2007)
Product can be Product cannot be - Reality: There is no universal solution to the
inventoried inventoried problems in your business.
Low Customer High Customer - Organization: You must organize all
Contact Contact aspects of production into a coherent
Capital Intensive Labor Intensive
whole.
Nota Bene: Organizations that exhibit some - Fundamentals: Adhere to fundamentals,
characteristics of each type of organization in such as accurate inventory records.
terms of operations are called quasi- - Accountability: People try harder when
manufacturing organizations (Reid & Sanders, they’re held accountable.
2011). Examples of these are Fast food chains - Variance: Variance is part of every
and Postal Services process.
- Causality: Problems are often symptoms.
 Transformation Process
Get to the root cause.
- Managed Passion: People with a passion
for their jobs will drive your company.
- Humility: You don’t have to know
everything.
- Success: Define success, and change
with the market.
- Change: Every manufacturing solution is
temporary.