introduction to operations management
TRANSCRIPT
INTRODUCTION TO OPERATIONS MANAGEMENT
Prof. Kaushik PaulAssociate ProfessorOperations AreaE-Mail: [email protected]: 43559308
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OBJECTIVES
To recognise that Operations Management exists
To understand the concepts of core and value added services
To understand how Operations management is used in practice
To understand how the transformation process works.
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They are all operations
Retail operation
Back office operation in
a bank
Take-out / restaurant operation
Kitchen unit manufacturing
operation
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A GENERAL MODEL OF OPERATIONS MANAGEMENT
Input transformed resources
Materials Information Customers
Facilities Staff
Input transforming
resources
Planning and control
ImprovementDesign
The operation’s competitive role
and position
Operation’s strategic
objectives
Operations strategy
CustomersOutput
products and services
Input resources
ENVIRONMENT
ENVIRONMENT
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Core services are basic things that customers want from products they purchase
CORE SERVICES DEFINED
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CORE SERVICES PERFORMANCE OBJECTIVES
OperationsManagement
Flexibility
Quality
Speed
Price (or cost Reduction)
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Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way
VALUE-ADDED SERVICES DEFINED
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VALUE-ADDED SERVICE CATEGORIES
OperationsManagement
Information
Problem Solving
Sales Support
Field Support
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WHERE DOES THE BUSINESS GET ITS COMPETITIVE ADVANTAGE?
The way it produces its goods and services?
The way it positions
itself in its market?
The “technological” specification of
its product/service
?
Product/Service
Technology
Marketing Operations
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THE THREE FUNCTIONS WORKING TOGETHER .... e.g. SWATCH
but also
Standardize, easy to make
product at high volume so low
cost
Product/ service design
OperationsMarketing
Further innovations
which funds which
funds etc.
Increased variety does not increase
costsbut because
volume is high
Extended range
Mass fashion orientation
allows
which gives
Innovative plastic design with few parts
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CORE AND SUPPORT FUNCTIONS
Accounting and finance
function
Human resources function
Others
Engineering/ technical function
Information/ technical (IT)
function
Marketing function
Product/services development
function
Operations function
Core functions
Support functions
A broad definition of operations management
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THE POSITION OF THE OPERATIONS FUNCTION
Marketing Operations
ChurchCall on newcomers
Manage appeals
Retranslate scriptures
Conduct weddings
Advertise on television
Pay suppliers
Design hamburgers
Make hamburgers
Sell to stores Pay staff
Design new furniture
Assemble furniture
Identify needs
Raise capital
Develop product
Make and distribute
Accounting and finance
Product development
Fast food chain
Furniture manufacturer
Process perspective
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The best way to start understanding the nature of “Operations” is to look around you
Everything you can see around you (except the flesh and blood) has been processed by an operation
Every service you consumed today (radio station, bus service, lecture, etc.) has also been produced by an operation
Operations Managers create everything you buy, sit on, wear, eat, throw at people, and throw away
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IKEA STORE
Design elegant products which can be flat-packed efficiently
Design a store layout which gives smooth and effective flow
Ensure that the jobs of all staff encourage their contribution to business success
Maintain cleanliness and safety of storage area Arrange for fast
replenishment of products
Monitor and enhance quality of service to customers
Site selection for stores of an appropriate size in the most effective locations
Continually examine and improve operations practice
SOME OPERATIONS MANAGEMENT ACTIVITIES AT IKEA
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ALL OPERATIONS ARE TRANSFORMATION PROCESSES
ENVIRONMENT
ENVIRONMENT
INPUT OUTPUTGOODS
AND SERVICES
TRANSFORMED RESOURCES
MATERIALS INFORMATION CUSTOMERS
FACILITIES STAFF
TRANSFORMING RESOURCES
TRANSFORMATION PROCESS
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OPERATIONS MANAGEMENT – BASIC PRINCIPLES
All types of enterprise have an operations function, even if it isn’t called ‘operations.
Most operations produce both products and services.
Materials
Products and services
Information
Customers
Operations management is concerned with producing and
delivering products and services
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THE OUTPUT FROM MOST TYPES OF OPERATION IS A MIXTURE OF GOODS AND SERVICES
Cru
de
oil
pro
du
cti
on Pure goods
TangibleCan be stored
Production precedes consumption
Low customer contact
Can be transportedQuality is evident
IntangibleCannot be storedProduction and consumption are simultaneousHigh customer contactCannot be transportedQuality difficult to judge
Pure services
Alu
min
ium
sm
elt
ing
Sp
ec
iali
st
ma
ch
ine
to
ol
ma
nu
fac
ture
r
Re
sta
ura
nt
Co
mp
ute
r s
ys
tem
s
se
rvic
es
Ma
na
ge
me
nt
co
ns
ult
an
cy
Ps
yc
ho
the
rap
y c
lin
ic
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THE ACTIVITIES OF OPERATIONS MANAGEMENT
ENVIRONMENT
ENVIRONMENT
INPUT OUTPUTGOODS
AND SERVICES
INPUT TRANSFORMED
RESOURCES
MATERIALS INFORMATION CUSTOMERS
FACILITIES STAFF
INPUT TRANSFORMED
RESOURCES
OPERATIONS STRATEGY
DESIGN
PLANNING AND CONTROL
IMPROVEMENT
OPERATIONS STRATEGIC
OBJECTIVESTHE
OPERATIONS COMPETITIVE
ROLE AND POSITION
Operations strategy
Operations management
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Operations Activities as Feedback Loops
Design activities set the basic configuration
Planning & control activities guide short/medium term changes
Planning & Control
Design
Improvement
Improvement activities guide longer term changes
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HISTORICAL DEVELOPMENT OF OM
JIT and TQC
Manufacturing Strategy Paradigm
Service Quality and Productivity
Total Quality Management and Quality Certification
Business Process Reengineering
Supply Chain Management
Electronic Commerce
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OBJECTIVES
To recognise that Operations Management exists
To understand the concepts of core and value added services
To understand how Operations management is used in practice
To understand how the transformation process works.
References: 1) ‘Operations Management’ By Nigel Slack et al. 2e
2) ‘Operations Management for Competitive Advantage’ By Chase, Jacobs & Aquilano, 10e
HOPE YOU ENJOYED THE CLASS. QUESTIONS PLEASE
THANK YOU