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OM-CH 01 Introduction

This document provides an introduction to operations management. It defines operations management as designing, operating, and improving systems that create and deliver a firm's primary products and services. It also defines a production system as using resources to transform inputs into desired outputs. The document outlines the operations manager's role in planning, organizing, staffing, directing, and controlling production. It traces the historical development of operations management from scientific management to modern applications of JIT, TQC, and e-commerce.

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121 views

OM-CH 01 Introduction

This document provides an introduction to operations management. It defines operations management as designing, operating, and improving systems that create and deliver a firm's primary products and services. It also defines a production system as using resources to transform inputs into desired outputs. The document outlines the operations manager's role in planning, organizing, staffing, directing, and controlling production. It traces the historical development of operations management from scientific management to modern applications of JIT, TQC, and e-commerce.

Uploaded by

Sha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Operations

Management
Lecturer: Prof. Sudath Manjula Amarasena
University of Sri Jayewardenepura
Introduction of
Operations Management
Chapter 1

 OM in the Organizational Chart

 Operations Management Defined

 The Operations Manager and the Management Process

 Operations Function and its Environment

 Historical Development of the Field


OM in the Organizational Chart

Organization

Finance Operations Marketing Human Resource


What is Operations Management?

Defined
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
Processes and
Operations
Internal and
external customers

Inputs
• Workers Processes and
• Managers operations
• Equipment Outputs
• Facilities 1 3 • Services
• Materials 5 • Goods
• Services
• Land 2 4
• Energy

Information on
performance
What is a Production System?

Defined

A production system is defined as a user of resources

to transform inputs into some desired outputs


Transformations

Physical--manufacturing

Locational--transportation

Exchange--retailing

Storage--warehousing

Physiological--health care

Informational--telecommunications
Continuum of Characteristics
More like a More like
manufacturing a service
organization organization

• Physical, durable product • Intangible, perishable product


• Output that can be inventoried • Output that cannot be
• Low customer contact inventoried
• Long response time • High customer contact
• Regional, national, or • Short response time
international markets • Local markets
• Large facilities • Small facilities
• Capital intensive • Labor intensive
• Quality easily measured • Quality not easily measured
Goods & Services
The Operations Manager and the
Management Process

1. Planning 2. Organizing
Capacity Degree of centralization
Location Process selection
Products & Services
Make or Buy
3. Staffing
Layout Hiring/Laying off
Projects Use of overtime
Scheduling
The Operations Manager and the
Management Process (Cont’d)

4. Directing 5. Controlling/Improving
Incentive Plans Inventory
Assurance of Work orders Costs
Job Assignments Quality
Productivity
Operations Function and its Environment
Historical Development of OM

 Advent of scientific management

 Moving Assembly line

 Hawthorn studies of worker motivation

 Operations research

 OM emerge as a field
Historical Development of OM (cont’d)

 Computers and the MRP application

 JIT, TQC and Factory Automation

 Service Quality and productivity

 Ecommerce using internet and world wide web


Summary

 Operations Management

 Production System

 Transformation Process

 OM in the Organization Chart

 The Operations Manager and the Management Process

 Historical Development
Discussion Question

 What represents “Operations” at


 A Bank
 A Retail Store
 A Hospital
 A TV Broadcasting Station

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