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Overview: Introduction to the

Production Management

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Operations Management

Why Study Operations Management?

Production System Defined Operations as a Service

Historical Development of OM

Current Issues in OM

OBJECTIVES

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What is Operations Management?

Defined

Operations management (OM) isdefined as the design, operation, and

improvement of the systems that

create and deliver the firms primary

products and services

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Why Study Operations Management?

Business Education

Systematic Approach

to Org. Processes

Career Opportunities

Cross-Functional

Applications

OperationsManagement

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What is a Production System?

Defined

A production system is defined as a

user of resources to transform inputsinto some desired outputs

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Transformations

Physical--manufacturing

Locational--transportation

Exchange--retailing

Storage--warehousing

Physiological--health care

Informational--telecommunications

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What is a Service and What is a

Good? If you drop it on your foot, it wont hurt

you. (Good or service?)

Services never include goods and

goods never include services. (True orfalse?)

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OM in the Organization Chart

Operations

Plant

Manager

Operations

Manager

Operations

Head

Manufacturing, Production control,

Quality assurance, Engineering,

Purchasing, Maintenance, etc

Finance Marketing

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Core services are basic things that

customers want from productsthey purchase

Core Services

Defined

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Core Services Performance Objectives

Operations

ManagementFlexibility

Quality

Speed

Price (or cost

Reduction)

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Value-added services differentiatethe organization from competitors

and build relationships that bind

customers to the firm in a positiveway

Value-Added Services

Defined

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Value-Added Service Categories

OperationsManagement

Information

Problem Solving

Sales Support

Field Support

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Historical Development of OM

JIT and TQC

Manufacturing Strategy Paradigm

Service Quality and Productivity

Total Quality Management andQuality Certification

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Historical Development of OM (contd)

Business Process Reengineering

Supply Chain Management

Electronic Commerce

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Current Issues in OM

Effectively consolidating the operationsresulting from mergers

Developing flexible supply chains to

enable mass customization of productsand services

Managing global supplier, production and

distribution networks

Increased commoditization of suppliers

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Current Issues in OM (contd)

Achieving the Service Factory

Enhancing value added services

Making efficient use of Internettechnology

Achieving good service from servicefirms

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Happy Learning