om lec1 intro to om
TRANSCRIPT
7/27/2019 OM Lec1 Intro to OM
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Operations
Management
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¨ KHALID HUSSAIN CHOHAN, Tamgha-i-Imtiaz (M)
¨ MBA (“HR” and “Finance & Investment”)
NUST I nsti tute of Management Sciences ¨ M.A (Economics)
Peshawar University
¨ B.Sc. (Hons)- War Studies
Balochistan University
Contact:0321-5178693
E-mail: [email protected]
Facilitator
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OM Introduction
¨ How we manage our productive resourcesis critical to our productivity growth and
competitiveness as a nation. Operationsmanagement is the managing of these
productive resources. It entails the designand control of systems responsible for the
productive use of raw materials, humanresources, equipment, and facilities in thedevelopment of a product or service.
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Course Objectives
¨ To explain how the operations function ismanaged
¨ To introduce OM concepts and tools that you canapply on the job
¨ To help you develop an appreciation for theinteraction of this management activity with other
management functions within the organization¨ To introduce “cutting edge” concepts in the field
¨ To provide an understanding of the field in itstotality
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Operations
Management
Operations and Productivity
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Outline
¨ What is Operations Management?
¨ Why Study OM?
¨ What Operations Managers Do¨ Organizing to Produce Goods and Services
¨ Where are the OM Jobs?
¨ Exciting New Trends in OM
¨ Operations in the Service Sector
¨ The Productivity Challenge
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What is Operations Management?
¨ Production is the creation of goods and
services
¨ Operations (or Production) management isthe management of activities that creates
goods and services through the
transformation of inputs into outputs
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Organizational Functions
¨ Marketing - generates demand or at least
takes the order for a product or service
¨ Operations - creates the product
¨ Finance/accounting - tracks how well the
organization is doing, pays the bills,
collects the money
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Summary Model of the OM FieldMarketplace
Corporate Strategy
Operations Strategy
Operations
Management
People Plants
Planning and Control Systems
Parts Process
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Process?
¨ A process is a combination of orderly steps
(activities) to convert defined inputs into
defined outputs.
¨ A good process maximizes the value-added
content of its operations.
¨ What is value? Anything that the customer
will pay for.
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Next Process is the Customer!
TRANSFORMATION
PROCESSINPUTS OUTPUTSSUPPLIER
Value added
•A process has customers, suppliers, and
process managers!
CUSTOMER
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Organizational Functions
¨ Marketing
¨ Gets customers
¨ Operations
¨ creates product or service
¨ Finance/Accounting
¨ Obtains funds
¨ Tracks money © 1995 Corel Corp.
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Functions - Airline
OperationsFinance/
AccountingMarketing
Ground
Support
Flight
Operations
Facility
MaintenanceCatering
Airline© 1984-1994 T/Maker Co.
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Functions - Bank
OperationsFinance/
AccountingMarketing
Check
Clearing
Teller
Scheduling
Transactions
ProcessingSecurity
Commercial Bank© 1984-1994
T/Maker Co.
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Functions - Manufacturer
OperationsFinance/
AccountingMarketing
Production
ControlManufacturing
Quality
ControlPurchasing
Manufacturing
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Where are the OM Jobs?
¨ Technology/methods¨ Facilities/space utilization
¨ Strategic issues
¨ Response time¨ People/team development
¨ Customer service
¨ Quality¨ Cost reduction
¨ Inventory reduction
¨ Productivity improvement
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Line and Staff Jobs in OM
¨ SENIOR
¨ MIDDLE
¨ LOWER
¨ STAFF
Service
¨ Vice President of Operations
¨ Chief Administrator
¨ Store Manager
¨ Facilities Manager
¨ Branch Manager
¨ Department Supervisor
¨ Assistant Manager
¨ Customer ServiceManager
¨ System and ProcedureAnalyst
¨ Inspector
Manufacturing
¨ Vice President of
Manufacturing
¨ Director of
Manufacturing
¨ Plant Manager
¨ Operations Manager
¨ Department Supervisor
¨ Foreman
¨ Quality Manager
¨ Production Controller
¨ Technical Manager
¨ Materials Manager
¨ Purchasing Agent¨ Process/Mfg. Engineer
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Customers View of OM
¨ There are three issues a
company must address.
How to improve quality.
How to reduce cost.
How to ensure on time
delivery without creating
inventory.
¨ Not improving in all
three of these areas
means a loss of
competitiveness in
today’s global markets.
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Contributions from
¨ Human Factors
¨ Industrial Engineering
¨ Management Science
¨ Biological Science
¨ Physical Sciences¨ Information Science
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Significant Events in OM
¨ Division of labor (Smith, 1776)
¨ Standardized parts (Whitney, 1800)
¨ Scientific Management (Taylor, 1881)
¨ Coordinated assembly line (Ford 1913)
¨ Gantt charts (Gantt, 1916)
¨ Quality control (Shewhart, 1924)
¨ CPM/PERT (DuPont, 1957)
¨ Flexible manufacturing systems (FMS)
¨ Computer Integrated Manufacturing (CIM)
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Why Study OM?
¨ OM is one of three major functions(marketing, finance, and operations) of anyorganization
¨ We want (and need ) to know how goodsand services are produced
¨ We want to know what operations managersdo
¨ OM is such a costly part of an organization – biggest opportunity for improvement!
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What Operations Managers Do
¨ Plan
¨ Organize
¨ Staff
¨ Lead
¨ Control¨ Improve