operations management - piimtunderstand the of role om in the organization ... om’s function...
TRANSCRIPT
5 Ps of the course
• Punctual
• Prepared
• Productive
• Positive
• Polite
Start on time, end on time you can’t come, email me
Complete your assignements
Participate proactively Bring an added value
No phone, no side discussions
Don’t understand? Ask
Course description
Syllabus
• Concepts
• Operations Strategy
• Operations Design
• Operations Planning and Control
• Quality
Management
• SCM
• Inventory…
Why we study OM ?
It’s a major function in an organization in both manufacturing and services, Profit
and Non-Profit
• Marketing –> Generates demand
• Production/Operations –> creates the product
• Finance/Accounting –> tracks how well the organization is doing, pays bills,
collects the money
The major functional areas must interact to
achieve the organization goals So
urce : A
llen B
ostro
m
Why we study OM ?
• OM is a discipline that applies throughout the world to virtually all businesses.
• Operations contributes significantly to the overall performance of a firm.
• Operations management is gaining more recognition both internally and externally to an organization
New Business environment
Globalization of business and markets
Shift in balance of power to consumers
Increasing Competition
Implications for OM Creating higher quality products
Delivering better customer service
Achieving shorter delivery times
Reducing labor and material costs
Concepts
Historical evolution
Production system
Transformation models
1 Introduction to Operations Management
Learning objectives
Define OM and the concepts related to OM
Understand the of role OM in the organization
Explain the distinction between goods and services
Explain the difference between production and productivity
Learning objectives
Quiz
Definitions
• Production: Application of resources to convert materials into
finished goods and services. Production is a value addition process.
• Operations : transformation of a range of inputs into the required output (services) having the requisite quality level.
Inputs are resources such as People, Material, and Money
Outputs are goods and services
Definitions
1. The business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company.
2. The process which combines and transforms various resources used in the operations subsystem of the organization into value added products/services in a controlled manner in accordance with the policies of the organization.
Operations Management :
Value addition process
• Increase product value at each stage
Value added is the net increase between output
product value and input material value
• Provide an efficient transformation
performing activities well for least possible cost
OM’s function focuses on adding value through the transformation process of converting inputs into outputs.
For long-run success, companies must place much importance on their operations