Tata McGraw

C
H
A
P
T
E
R


1

I
n
t
r
o
d
u
c
t
i
o
n

t
o

t
h
e

F
i
e
l
d

Chapter 1

Introduction to the Field
What is Operations and Supply
Management?
Why Study Operations
Management?
Transformation Processes Defined
Differences between Services and
Goods
The Importance of Operations
Management
Historical Development of OM
Current Issues in OM
OBJECTIVES
1-3

What is Operations and Supply Management?

Operations and Supply
Management (OM) is defined
as the design, operation, and
improvement of the systems
that create and deliver the
firms primary products and
services
1-4
Why Study Operations Management?
Business Education
Systematic Approach
to Org. Processes
Career Opportunities
Cross-Functional
Applications
Operations
Management
1-5
What is a Transformation Process?

Defined
A transformation process is
defined as a user of resources
to transform inputs into some
desired outputs
1-6
Transformations
Physical--manufacturing
Locational--transportation
Exchange--retailing
Storage--warehousing
Physiological--health care
Informational--telecommunications
1-7
Operations and Supply Management
Supply Chain Processes
Sourcing
Processes
Manufacturing
Processes
Service
Processes
Distribution
Processes
Logistics
Processes
Logistics
Processes
1-8
What is a Service and What is a Good?
If you drop it on your foot, it
wont hurt you. (Good or
service?)
Services never include goods
and goods never include
services. (True or false?)
1-9
The Goods-Services Continuum
1-10
Historical Development of OM
JIT and TQC
Manufacturing Strategy Paradigm
Service Quality and Productivity
Total Quality Management and Quality
Certification
1-11
Historical Development of OM (contd)
Business Process Reengineering
Six-Sigma Quality
Supply Chain Management
Electronic Commerce
Service Science
1-12
Current Issues in OM
Coordinate the relationships between
mutually supportive but separate
organizations.
Optimizing global supplier, production,
and distribution networks.
Increased co-production of goods and
services
1-13
Current Issues in OM (contd)
Managing the customers
experience during the service
encounter
Raising the awareness of
operations as a significant
competitive weapon
1-14
Question Bowl
A major objective of this book is to show
how smart managers can do which of
the following?
a. Improve efficiency by lowering costs
b. Improve effectiveness by creating
value
c. Increasing value by reducing prices
d. Serving customers well
e. All of the above
Answer: e. All of the above
1-15
Question Bowl
In the Input-Transformation-Output
Relationship, a typical input for a
Department Store is which of the
following?
a. Displays
b. Stocks of goods
c. Sales clerks
d. All of the above
e. None of the above
Answer: e. None of the above (The above are
considered Resources of a department store.
The correct answer is Shoppers.)
1-16
Question Bowl
In which of the following decades
did the concept of quality control
originate?
a. 1920s
b. 1930s
c. 1940s
d. 1950s
e. 1970s
Answer: b. 1930s (Tools such as
sampling inspection and statistical
tables where first developed by
Walter Shewhart, H. F. Dodge, and
H. G. Romig.)
1-17
End of Chapter 1
1-18