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Chapter 1 - : Introduction To Operations Management

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39 views11 pages

Chapter 1 - : Introduction To Operations Management

Uploaded by

varadu
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 1 - Introduction to

Operations Management

Operations Management
by

R. Dan Reid & Nada R. Sanders


2nd Edition © Wiley 2005

PowerPoint Presentation by R.B. Clough - UNH

© Wiley 2005 1
What is Operations Management?

The business function responsible for


planning, coordinating, and
controlling the resources needed to
produce a company’s products and
services

© Wiley 2005 2
Typical Organization Chart

© Wiley 2005 3
Business Information Flow

© Wiley 2005 4
OM’s Transformation Role

© Wiley 2005 5
Productivity

Outputs
P
Inputs

© Wiley 2005 6
Differences between Manufacturers
and Service Operations
 Services:  Manufacturers:
 Intangible product  Tangible product
 Service cannot be  Product can be
inventoried inventoried
 High customer contact  Low customer contact
 Short response time  Longer response time
 Labor intensive  Capital intensive

© Wiley 2005 7
Service and Manufacturers
 All use technology
 Both have quality, productivity, & response
issues
 All must forecast demand
 Each will have capacity, layout, and location
issues
 All have customers and suppliers
 All have scheduling and staffing issues

© Wiley 2005 8
Trends in OM
 Service sector growing
to 80% of non-farm
jobs- See Figure 1-4
 Global operations
 Demands for higher
quality
 Huge technology
changes
 Time based competition

© Wiley 2005 9
OM Decisions

© Wiley 2005 10
Operations Management
Decisions
 Strategic:  Tactical:
 Product/Service  Quality Control
Design  Demand Forecasting
 Process Selection  Supply Chain
 Capacity Planning Management
 Facility Location  Production Planning
 Facility Layout  Inventory Control
 Job Design  Scheduling

© Wiley 2005 11

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