Scribd
Upload
786 views

Lecture 1 Introduction To Operations Management

Here are some responses to the exercise questions: 1. For a hospital: - Inputs: Patients, medical staff, equipment/facilities, medicines/supplies - Transformation processes: Diagnosis, treatment, surgery, recovery - Outputs: Healthier patients, medical reports/records 2. Operations management is relevant because it helps any organization efficiently and effectively transform inputs into valuable outputs/services for customers through proper planning, coordination and control of activities/resources. 3. For a bank: - Functions: Operations (fulfilling transactions), marketing, finance, HR, IT - Operations is central since it provides the core banking services that support other functions like marketing new products and finance processing transactions. 4

Uploaded by

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

Lecture 1 Introduction To Operations Management

Here are some responses to the exercise questions: 1. For a hospital: - Inputs: Patients, medical staff, equipment/facilities, medicines/supplies - Transformation processes: Diagnosis, treatment, surgery, recovery - Outputs: Healthier patients, medical reports/records 2. Operations management is relevant because it helps any organization efficiently and effectively transform inputs into valuable outputs/services for customers through proper planning, coordination and control of activities/resources. 3. For a bank: - Functions: Operations (fulfilling transactions), marketing, finance, HR, IT - Operations is central since it provides the core banking services that support other functions like marketing new products and finance processing transactions. 4

Uploaded by

Cleo de Chico
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 20

Course POM 5011: Operations Management

Lecturer: Dr. Sungau, J

Contacts: Email sungaujj@gmail.com


and jsungau@mzumbe.ac.tz

Phone: 0785571741
Recommended readings
– POM 5011: Operations management by Upendra
and Kimeme (2011)
– Operations management by Heizer and Render
(2011), 10th ed
– Operations Management by Slack et al (2005)

Course Assessment
 1 group assignment - 10%
 1 test (individual) - 15%
 Term paper - 25%
 UE (End of the semester) - 50%
Introduction to Operations Management
 Operations are set of activities that creates value in the
form of goods and services by transforming inputs into
outputs.
 Operations Management (OM) is the planning,
coordinating, and controlling the activities and resources
needed to deliver an organizational offering(s).
 In other words, OM is a management function that is
responsible for managing value creation process/system
 Who is Operations manager?
 Names of Operations managers (Production Manager-
Manufacturing org, Fleet manager– Distribution org,
Administrative officer– Hospital, Store keeper–
Supermarket etc)
Activities of Operations Manager

• Understanding the operation’s strategic objectives


• Developing an operation’s strategy for the
organization
• Designing products, services and processes
• Planning, coordinating and controlling the operations
• Evaluating and improving performance of the
operations
The input-transformation-output model

Transformed
resources

Materials
Information
Customers

Goods
Input Transformation Output and
process services

Transforming
resources

Facilities
Staff

Feedback

5
Inputs to the process 1/2
• Transformed resources:-
1. Materials:-
 transform their physical properties (Shape or composition),
 Change location (parcel-Delivering org/transport)
 Change possession (retail operation) or
 Store (Warehouse)
2. Information: -
 transform their information properties (data - Researcher)
 Change location (Telecommunication company)
 Change possession (market research company) or
 store (Library, archives)

6
Inputs to the process 2/2
3. Customer:
 transform their physical properties (hairdressers..),
 Change location (Transport org)
 Change physiological state (Hosp)
 Change psychological state (entertainment services) or
 Store (Hotels)

• Transforming resources
4. Facility (machines and equipments)
5. Staff (workers)

7
Transformation Processes
Transformation process is a set of interrelated activities that
transform inputs to output
Example of transformation processes
• Production line
• Learning process

8
Outputs to the process 1/3

Good, service and/by product


Good is primary output from a process
– Tangible product
– Product can be inventoried
– Low customer contact
– Longer response time
– Capital intensive
– Standardized
– Some aspects can easily be measured
9
Outputs to the process 2/3
Service is primary output from a process
– Intangible product
– Simultaneous produced and consumed
– High customer contact
– Short response time
– Labor intensive
– High degree of variability
– Some aspects cannot be easily measured
Outputs to the process 3/3
By-Products
• A by-product is a secondary or incidental product
deriving from a process.
• A by-product can be useful and marketable, or it can
have negative ecological impact.
– acidulated soap stock - from the refining of
vegetable oil
– molasses - from sugar refining
– pectin - recovered from the remains of processed
fruit
– fly ash - from the combustion of coal
– mineral oil - from refining crude oil to produce
gasoline
Example
• Take Mzumbe University
Relevance of OM to both production and
service undertakings 1/2
• To add value
– Increase product value at each stage (Value added is the
net increase between output product value and input
material value)
• Provide an efficient and effective transformation
– Efficiency – Doing the job well with minimum resources
and wastes (cost reduction)
– Effectiveness - Doing right things (quality)
• Quick response (speed)
• Cope with market fluctuation (flexibility)
• Meet promises (on time delivering) 13
Relevance of OM to both production and service
undertakings 2/2 – Efficiency and effective
Lower prices
(or higher profits)

Faster customer Cost On-time


response Depend- deliveries
Speed
ability

Quality Flexibility
Error-free products Wider variety
and services More customisation
More innovation
Cope with volume
fluctuations
14
Organization functions 1/4

• Common functions to an organization.


 Operation (fulfill primary objective)
 Marketing (communicate the organizational offering)
 Finance & Accounting (solicit and control financial
resources)
 Human resource (Responsible for staff affairs)
 etc)

15
Organization functions 2/4
There are two major groups of functions in an
organization; core and supporting functions
Core functions
1. Marketing (including sales) function: - For communicating
the organization’s products and services to the market; it
is also responsible for generating customer requests for a
product/service, and it responsible for collecting
customer needs, wants and wishes
2. Product/service development function: -for creating new
and modified products and services to generate future
customer requests for service
3. Operations function: - for fulfilling customer requests for
service throughout production and delivering of products
and service 16
Organization functions 3/4
• Supporting functions
1. Finance & Accounting function: - provide information to
help economic decision making and manages the
financial resources of the org.
2. Human resources function: which recruits and develops
the organization’s staff as well as looking after their
welfare.
3. etc

• Operations function is a central function to an


organization because it provides goods and services in
support of other functions
17
Organization functions 4/4

18
Figure 1.1: Relationship with other organization functions
Time-Based Categories of OM Planning

• Based on Time Horizon and Strategic Nature of the


Decisions:
– Long-Range Operations Planning
– Medium-Range Operations Planning
– Short-Range Operations Planning
(Go and read more on Time-Based OM planning)
Exercise
• By using a Hospital/bank/Post office, list the input ,
transformation processes and outputs.
• What is the relevance of operations management in any
organization?
• On your choice of an organization, mention five functions
and then show their relationships to the central function
• With an example, justify that in any organization
transformation process; material, information and
customer are used at the same time.
• Why operations function is central function to an
organization?

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy