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14 views

Lecture 01 (full page)

Uploaded by

rowendeng03
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Lecture 1

Introduction to
Operations
Management

1
Course Structure

Module 1:
Introduction & Module 2: Capacity Module 3: Product & Module 4: Control &
Operational Planning Service Delivery Sustainability
Planning

Introduction Process Flow Service Operations


to OM Analysis Delivery Strategy

Product & Lean & Six Distribution &


Inventory Supply Chain
Service Sigma Strategy
Design Management

Facility Demand & Globalization


Process Location Revenue &
Structures Planning Management Sustainability

2
Learning Objectives

• Identify what products and services are


and their characteristics.
• Explain what operations management is
and why it is important.
• Describe the common challenges that
operations managers have faced.

3
4

Supply Chain OM Challenges from COVID19

• Causes of product and service shortages and


overages:
• Surges in demand due to lockdowns, at–home
work, distribution of relief funds.
• Much increased demand for items sourced off–
shore – pressure on shipping capacity.
• Drops in demand for travel, eating out, personal
services, etc .
etera

• Limited supply due to labor shortages, small


business failures, shutdowns.
• Coincidental weather events, industrial
accidents at central supply locations.
• Limited ability for plants, ports, trucks, material
handling equipment to rapidly scale up or down.
Operations Management (OM)
is everywhere – Part I

PRODUCTS: Everything you wear, eat, sit on or in,


use, read, or knock about on a sports field comes
to you courtesy of operations.

SERVICES: Every book you borrow from the


library, every medical treatment you receive, every
lecture you attend at a university, every service you
receive comes to you courtesy of operations.

5
Characteristics of Products & Services

Product / Services
Goods

Core Goods Core Services

• Tangible • Intangible
• Can be inventoried • Cannot be inventoried
• Little customer contact • Extensive customer contact
• Long lead time • Short lead time
• Often capital-intensive • Often labor intensive
• Quality easily assured • Quality harder to assess
• Material is transformed • Information or customer is
transformed 6
Manufacturing and Services
Continuum of Characteristics

Service
Orientation
Mining (coal)

Automobiles

Fast Food

Banking

Consulting
Manufacturing
Orientation
7
Service-Product Bundle
Element Core Goods Core Service
Example Example
Business Automobile (e.g. Toyota) Hair Salon
Core Motor cars Hair treatment

Non-core Car accessories Shampoo &


Goods conditioner

Non-core Warranty / Manicure


Service Maintenance
service

Goal: Add value to customers 8


Goods vs. Services:
Total Product Experience

• Total product experience refers to all the


outputs of an operation, both goods and
services, that are combined to define a
customer’s complete consumption
experience.
• The experience includes all aspects of
purchasing, consuming, and disposing of
the product.

9
Operations Management (OM)
is everywhere – Part II

OM
Schools Construction
Restaurants
Hospitality Banks

Military

Agriculture Transportation
Health Sport Teams
Care Municipalities

Government
Manufacturers Services Not-for-Profit Entertainment
Retail
Organizations
10
Operations Management (OM):
A Basic Definition

Operations
Management (OM):
is the management of
processes used to
design, supply,
produce, and deliver
valuable goods and
services to customers

11
What is Operations?
Inputs Transformation Outputs

A process is a system of activities that transforms


inputs into valuable outputs. 12
What is Operations? (Cont’d)

Primary Inputs Outputs


Goods
Raw Materials Transformation
Processes and/or

Services
Resources:
•Labor
•Plant
•Equipment

13
Operations Management (OM):
Common Challenges

• Lowering costs
• Improving quality
• Enhancing product
desirability
• Aligning OM with the
company’s competitive
strategy
• Evolving with the needs of
customers, competition, and
technology
14
Why study OM?

• OM involves using resources and managing


organizational relationships
• When done well, effective OM can:
–Use resources more efficiently

–Improve business processes effectiveness


–Improve relationships between business entities
–Help meet strategic goals
–Increase customer service

15
Key Take-away

• Characteristics of Products & Services

• Service-Product Bundle

• OM definition and challenges

16
Appendix

17
Careers in Operations
Management

18
Careers in Operations Management

Chief Operating Business


Branch Manager Officer Consultant Project Manager

Business
Operations Supply Chain Hotel Front Quality Control
Manager Office Manager Manager
Manager

Operations Business Social and


Management Research Process Community
Analyst Analyst Improvement Service Manager
Analyst

Medical and
Facilities Purchasing Health Services Department
Manager Manager Store Manager
Manager

19

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