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    Operations Management: William J. Stevenson

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    Patrice Scott
    This document introduces operations management. It defines operations management as the management of systems or processes that create goods and services. It discusses key operations management concepts like value-added activities, manufacturing versus services, and the responsibilities and decisions of operations managers. Finally, it provides a brief historical overview of the evolution of operations management and current business trends.

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    Operations Management: William J. Stevenson

    Uploaded by

    Patrice Scott
    2K views16 pages
    This document introduces operations management. It defines operations management as the management of systems or processes that create goods and services. It discusses key operations management concepts like value-added activities, manufacturing versus services, and the responsibilities and decisions of operations managers. Finally, it provides a brief historical overview of the evolution of operations management and current business trends.

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    Chapter 01

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    This document introduces operations management. It defines operations management as the management of systems or processes that create goods and services. It discusses key operations management concepts like value-added activities, manufacturing versus services, and the responsibilities and decisions of operations managers. Finally, it provides a brief historical overview of the evolution of operations management and current business trends.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    2K views16 pages

    Operations Management: William J. Stevenson

    Uploaded by

    Patrice Scott
    This document introduces operations management. It defines operations management as the management of systems or processes that create goods and services. It discusses key operations management concepts like value-added activities, manufacturing versus services, and the responsibilities and decisions of operations managers. Finally, it provides a brief historical overview of the evolution of operations management and current business trends.

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    You are on page 1of 16

    1-1

    Introduction to Operations Management

    Operations Management
    William J. Stevenson

    Muhammad Ali

    1-2

    Introduction to Operations Management

    CHAPTER

    Introduction to
    Operations Management

    1-3

    Introduction to Operations Management

    Operations Management
    The management of systems or processes
    that create goods and/or provide services
    Organization

    Finance

    Operations

    Marketing

    1-4

    Introduction to Operations Management

    Value-Added
    The difference between the cost of inputs
    and the value or price of outputs.
    Value added
    Inputs
    Land
    Labor
    Capital

    Transformation/
    Conversion
    process

    Outputs
    Goods
    Services

    Feedback

    Control
    Feedback

    Feedback

    1-5

    Introduction to Operations Management

    Manufacturing Vs. Service


    Food Processor
    Inputs

    Processing

    Outputs

    Raw Vegetables
    Metal Sheets
    Water
    Energy
    Labor
    Building
    Equipment

    Cleaning
    Making cans
    Cutting
    Cooking
    Packing
    Labeling

    Canned
    vegetables

    1-6

    Introduction to Operations Management

    Manufacturing Vs. Service


    Hospital Process
    Inputs
    Doctors, nurses
    Hospital
    Medical Supplies
    Equipment
    Laboratories

    Processing

    Outputs

    Examination
    Surgery
    Monitoring
    Medication
    Therapy

    Healthy
    patients

    1-7

    Introduction to Operations Management

    Key Differences
    Characteristic

    Manufacturing Service

    Output

    Tangible

    Customer contact

    Low

    High

    Uniformity of input

    High

    Low

    Labor content

    Low

    High

    Uniformity of output

    High

    Low

    Measurement of productivity

    Easy

    Difficult

    Opportunity to correct
    quality problems

    High

    Low

    High

    Intangible

    Introduction to Operations Management

    Manufacturing Vs Service
    U.S. Manufacturing vs. Service Employment
    Year Mfg. Service
    45
    79
    21
    50
    72
    28
    55
    72
    28
    60
    68
    32
    65
    64
    36
    70
    64
    36
    75
    58
    42
    80
    44
    46
    85
    43
    57
    90
    35
    65
    95
    32
    68
    00
    30
    70

    100
    80
    Percent

    1-8

    60
    40
    20
    0
    45

    50 55

    60

    65 70

    75

    Year

    80 85

    90

    95 00

    1-9

    Introduction to Operations Management

    Scope of Operations Management

    Operations Management includes:


    Forecasting
    Capacity planning
    Scheduling
    Managing inventories
    Assuring quality
    Motivating employees
    Deciding where to locate facilities
    And more . . .

    1-10 Introduction to Operations Management

    Responsibilities of Operations Management


    Planning

    Capacity
    Location
    Products & services
    Make or buy
    Layout
    Projects
    Scheduling

    Controlling/Improving

    Inventory
    Quality
    Costs
    Productivity

    Organizing

    Degree of centralization
    Process selection

    Staffing

    Hiring/laying off
    Use of Overtime

    Directing

    Incentive plans
    Issuance of work orders
    Job assignments

    1-11 Introduction to Operations Management

    Key Decisions of Operations Managers

    What
    What resources/what amounts
    When
    Needed/scheduled/ordered
    Where
    Work to be done
    Who
    To do the work
    How
    Design
    How Much
    Production

    1-12 Introduction to Operations Management

    Decision Making
    System Design

    capacity
    location
    arrangement of departments
    product and service planning
    acquisition and placement of
    equipment

    1-13 Introduction to Operations Management

    Decision Making
    System operation

    personnel
    inventory
    scheduling
    project
    management
    quality assurance

    1-14 Introduction to Operations Management

    Operations Interfaces
    Industrial
    Engineering
    Maintenance

    Distribution

    Purchasing

    Operations

    Public
    Relations

    Legal
    Personnel
    Accounting

    MIS

    1-15 Introduction to Operations Management

    Historical Evolution of Operations


    Management

    Industrial revolution (1770s)


    Scientific management (1911)

    Mass production
    Interchangeable parts
    Division of labor

    Human relations movement (1920-60)


    Decision models (1915, 1960-70s)
    Influence of Japanese manufacturers

    1-16 Introduction to Operations Management

    Trends in Business

    Major trends
    The Internet, e-commerce
    Management technology
    Globalization
    Management of supply chains
    Agility

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