Operations Operations ManagementManagement

FEM 280FEM 280

What is Operations What is Operations management management

Operations/production:Operations/production:

The creation of goods and The creation of goods and servicesservices

Operations Operations Management:Management:

The set of activities that The set of activities that creates value in the form creates value in the form of goods and services by of goods and services by transforming input into transforming input into output output

Operations as a systemOperations as a system

Transformation

(Conversion)

Process

Transformation

(Conversion)

Process

Energy

Materials

Labour

Capital

Information

Goods & Services

Feedback (information) - control over process inputs & technology

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Technology

Critical Decision of OMCritical Decision of OM

Critical Decision of OMCritical Decision of OM

Historical Evolution of Historical Evolution of OMOM

Manufacture OperationsManufacture Operations

– Deal with goods/tangible Deal with goods/tangible productsproducts

– Inputs (raw materials, Inputs (raw materials, etc.) and outputs etc.) and outputs (products) are tangible (products) are tangible and visible objectsand visible objects

– Manufacturing Manufacturing transformation processes transformation processes are some kind of chemical are some kind of chemical or physical processesor physical processes

Operation in Service Operation in Service SectorSector

The economics activities that The economics activities that produce intangible product.produce intangible product.

The other companies who are The other companies who are not manufacturers are not manufacturers are referred to as referred to as service service companiescompanies. .

The output of the service The output of the service operation is a satisfied operation is a satisfied customer.customer.

Different Goods and Different Goods and ServicesServices

Range of Services in Range of Services in ProductProduct

Most goods contain of Most goods contain of service and most services service and most services contain a goods.contain a goods.

Some service operations Some service operations deal with tangible outputs deal with tangible outputs even though they do not even though they do not manufacture a productmanufacture a product

Other service operations Other service operations deal with intangible deal with intangible productsproducts

In some service operations, In some service operations, customer is not present as customer is not present as a participant, In some a participant, In some others, customer is presentothers, customer is present

OM in Manufacture OM in Manufacture organizationorganization

OM in Service organizationOM in Service organization

ProduktivitasProduktivitas Rasio / perbandingan antara input dan output yang Rasio / perbandingan antara input dan output yang

dihasilkandihasilkan

- Tenaga kerja, Bahan Baku, Modal dll- Tenaga kerja, Bahan Baku, Modal dll

Produktivitas Sektor Jasa: Sulit terukurProduktivitas Sektor Jasa: Sulit terukur- Padat karyaPadat karya- Diproses sesuai keinginan individuDiproses sesuai keinginan individu- Sulit dimekanisme, otomatisasi, standardisasiSulit dimekanisme, otomatisasi, standardisasi- Kualitas sulit dievaluasiKualitas sulit dievaluasi

Peningkatan Produktivitas:Peningkatan Produktivitas:- Pengurangan input – output KonstanPengurangan input – output Konstan

-- Peningkatan output – Input KonstanPeningkatan output – Input Konstan