Overview Chapter OM

8/19/2019 Overview Chapter OM

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BJMP3083

OperationsManagement Seminar


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Dr Hendrik LamsaliPhD (Loughborough, UK), MSc (Warwick, UK), BB (UUM)

School o! "ech Mgm# $ Logis#ics%ollege o! Business

Uni&ersi#i U#ara Mala'sia* UUM Sin#ok, Kedah "el+ -./0 .1.

H23+ *1 0404 05mail+ hendrik6uum7edu7m'


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Presentation O verview83era#ions Managemen# de9nedSurrounding issues:eal world e;am3lesSummar'


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Prim ary Topics in O perations

M anagem entS#ra#eg'Produc#s andser&icesProcesses and#echnologies


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W hat is O perations

M anagem ent? D ef i ned Operations management (OM) is defined

as the design, operation, andimprovement of the systems that createand deliver the firm’s primary productsand services


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D iversity and Im portance ofO perations

?m3ro&emen#s in o3era#ions cansimul#aneousl' lower cos#s andim3ro&e cus#omer sa#is!ac#ion7?m3ro&ing o3era#ions o!#ende3enden# on ad&ances in#echnolog'7

%an ob#ain com3e#i#i&e ad&an#ageb' im3ro&ing o3era#ions7Di&ersi#' o! 83era#ions


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O perations

Hear# o! e&er' organi@a#ion83era#ions are #he #asks #ha# crea#e

&alue


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The Production System


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System s Perspective

?n3u#s "rans!orma#ion S's#em

l#er "rans3or#S#ore?ns3ec#

8u#3u#s5n&ironmen#


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Inputs

?n3u#s include !acili#ies, labor, ca3i#al,e>ui3men#, raw ma#erials, and su33lies7

less ob&ious in3u# is knowledge o!how #o #rans!orm #he in3u#s in#oou#3u#s7

"he o3era#ions !unc#ion >ui#e

!re>uen#l' !ails in i#s #ask because i#canno# com3le#e #he transformationactivities wi#hin #he re>uired #imelimi#7


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Transform ation System

"he 3ar# o! #he s's#em #ha# adds&alue #o #he in3u#s7


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O utputs

"wo #'3es o! ou#3u#s commonl'resul# !rom a 3roduc#ion s's#em

Ser&ices (3h'sical goods)Produc#s (abs#rac# or non3h'sical)


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O perations as a Transform ation

Process

Feedback

IN !"MaterialMachines#abor Management$apital

O!" !"%oods&ervices

"' N&FO'M "ION'O$ &&


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Types of Operations

Operations ExamplesGoods Producing Farming, mining, construction,

manufacturing, power generationStorage Transportation !are"ousing, truc#ing, mail

ser$ice, mo$ing, taxis, %uses,"otels, airlines

Exc"ange &etailing, w"olesaling, %an#ing,renting, leasing, li%rary, loans

Entertainment Films, radio and tele$ision,concerts, recording

'ommunication (ewspapers, radio and tele$isionnewscasts, telep"one, satellites


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Value-added services

dif f erentiate the organizationfrom com petitors and buildrelationships that bind

custom ers to the f i rm in apositive w ay

*alue+ dded &ervicesDefined


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Sim ilarities-Service/M anufacturers

ll use #echnolog'Bo#h ha&e >uali#', 3roduc#i&i#', $res3onse issues

ll mus# !orecas# demand5ach will ha&e ca3aci#', la'ou#, andloca#ion issues

ll ha&e cus#omers, su33liers,scheduling and s#aAng issues


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Service - M anufacturing

Manu!ac#uring o!#en 3ro&ides ser&icesSer&ices o!#en 3ro&ides #angible goodsSome organi@a#ions are a blend o!ser&ice2manu!ac#uring


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Current Issues in O M

ffectively consolidating the operationsresulting from mergers

eveloping fle-ible supply chains to enablemass customi.ation of products andservices

Managing global supplier, production anddistribution net/orks

Increased 0commoditi.ation1 of suppliers


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The factors for new challenges

in operations m anagem entShor#ening o! 3roduc# li!e c'cle,s3eci9ca#ion u3grading

Clobal de&elo3men# o! marke#ing


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om petitiveness

"he degree #o which a na#ion can3roduce goods and ser&ices #ha#mee# #he #es# o! in#erna#ionalmarke#s while simul#aneousl'main#aining or e;3anding #he real

incomes o! i#s ci#i@ens7


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Brainstorm ing

Wha# are #he ad&an#ages o!bringing cus#omers in#o

#he #rans!orma#ion 3rocessor #echnical core


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!n Integrated

"alue hain

Manufacturer &upplier $ustomer

Flo/ of information (customer order)

Flo/ of product (order fulfillment)


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! # ew "alue hain

Manufacturer Manufacturer 2holesaler3distributor 2holesaler3distributor 'etailer'etailer $onsumer$onsumer

InfomediaryInfomediaryManufacturer Manufacturer +'etailer+'etailer ggregator ggregator

ortalortal $onsumer$onsumer

Manufacturer Manufacturer 2holesaler3distributor 2holesaler3distributor 'etailer'etailer $onsumer$onsumer

*a+ Traditional alue '"ain

*%+ -ntermediaries Eliminated *.eintermediation+

(%+ (ew -ntermediaries -ntroduced *&eintermediation+


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Porter $%&'()* "alue hain


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erform ance O b!ectives

OperationsManagement

Fle-ibility

4uality

&peed

rice (or cost'eduction)


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Trends in O M

Ser&ice sec#or growing#o E -0 F o! non-!arm

=obs- See uali#'Huge #echnolog'changes

"ime based com3e#i#ionWork !orce di&ersi#'


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O M D ecisions

ll organi@a#ions are based ondecisionsDecisions !ollow a similar 3a#h


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O M D ecisions

"ac#ical decisions !ocus onS3eci9c da'-#o-da' issues

:esource needs, schedules, $ >uan#i#ies #o3roduce

"ac#ical decisions are &er' !re>uen#S#ra#egic decisions less !re>uen#

"ac#ical decisions mus# align wi#hs#ra#egic decisionsPlease read Skinner (*. .)+ Har&ard Business :e&iew


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O M D ecisions


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+istorical ,vents in O M

?ndus#rial :e&olu#ionS#eam engine *4 . Iames Wa##Di&ision o! labor *44 dam Smi#h

?n#erchangeable 3ar#s *4. 5li Whi#ne'

Scien#i9c Managemen#Princi3les *.**


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+istorical ,vents in O M

?n!orma#ion ge2?n#erne# :e&olu#ion

?n#erne#, WWW, 5:P *.. s :P J5", "imSu33l' chain Berners-Lee, S P, i/managemen#, "echnologies, 8: %L5,5-commerce Peo3leSo!#, ma@on,

ahoo, eBa',and o#hers


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, ercise

“….and companies today can no longerexpect to sustain competitive advantagebut must rely on innovation (of products,

processes, and transactions)....." Prof.Daniel F Spulber (Northwestern University, USA). Author !conomics an" #ana$ement of%ompetitive Strate$y (&'' ),

Discuss the above statement. You mayagree disagree.


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"hank ou

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Overview Chapter OM

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