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Introduction To OP MGNT. MGT303

Operations management involves managing systems or processes that create goods and services. It encompasses three key functions - operations, supply chains, and production. Operations managers make important decisions regarding what resources are needed, when, where work will be done, how work will be organized and performed, and who will do the work. Their responsibilities also include forecasting, capacity planning, scheduling, inventory management, quality assurance, and employee motivation. Current trends impacting operations management include e-commerce, technology, globalization, supply chain management, and the need for organizational agility.

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123 views17 pages

Introduction To OP MGNT. MGT303

Operations management involves managing systems or processes that create goods and services. It encompasses three key functions - operations, supply chains, and production. Operations managers make important decisions regarding what resources are needed, when, where work will be done, how work will be organized and performed, and who will do the work. Their responsibilities also include forecasting, capacity planning, scheduling, inventory management, quality assurance, and employee motivation. Current trends impacting operations management include e-commerce, technology, globalization, supply chain management, and the need for organizational agility.

Uploaded by

Julie Ann Manalo
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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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Operations Management with

TQM
Lecturer : Maria Mariel D. Perea, MBA
CHAPTER 1
INTRODUCTION TO
OPERATIONS MANAGEMENT
 OPERATIONS MANAGEMENT
10th Edition
REFERENCE :  STEVENSON – MCGRAWW HILL
International Edition
 The management of systems or processes
that create goods and/or provide services
 Goods – are physical items produced by
Operations business organizations
Management  Services – activities that provide some
combination of time, location, form and
psychological value.
Three basic functions of
the organization
Operations and supply chains – one couldn’t
exist without the other and no business
organization can exist without both.

Supply Chain is the sequence of


SUPPLY organizations - their facilities , functions and
CHAIN activities – that are involved in producing and
delivering of a product and service
PRODUCTION SYSTEM
Food Processor
Hospital
Process
Goods Service
Continuum
 Production of goods – tangible output
 Delivery of services – an act
 Service job categories
 Government
Production of
Goods vs.  Wholesale/retail
Delivery of  Financial services
Services  Healthcare
 Personal services
 Business services
 Education
 Degree of customer contact
 Uniformity of input
 Labor content of jobs
 Uniformity of output
KEY  Measurement of productivity
DIFFERENCE  Production and delivery
S
 Quality Assurance
 Amount of inventory
 Evaluation of work
 Ability to patent design
 Forecasting
 Capacity planning
Scope of  Scheduling
Operations  Managing inventories
Management
 Assuring quality
 Motivating employees
 Deciding where to locate facilities
Responsibilities
of Operations
Management
 What : What resources will be needed and in what
amounts?
 When : When will each resource be needed? When
should the work be scheduled? When should
Key Decisions of materials and other supplies be ordered? When is
Operations corrective action needed?
Managers  Where: Where will the work be done?
 How: How will the product or service be designed?
How will the work be done (organization, methods,
equipment)? How will resources be allocated?
 Who: Wo will do the work?
 The Internet, e-commerce, e-
business
Trends in
Business  Management technology
 Globalization
 Management of supply chains
 Agility
End .

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