Post on 09-Apr-2018
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Production/Operations
Management: Introductionevaluation,major long term and short
term decisions;objectives, importance and
activities
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What is Operations
Management?OPERATIONS MANAGEMENT is the design andoperations of production/service systems
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Without operations
management:A normal queue at a bank would take 1to 2 hours
A 3 hours ferry crossing could require 9hours, if not several days!
The Eurostar would take 15 hours to gofrom London to Paris
Mail would rarely be delivered
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In other words:
Unless we could totally revise ourevery days perceptions of time andperformance
we could not live in such a world
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Contemporary Issues
Shift in balance of power to consumers
Achieving higher levels of productivity
Creating higher quality products
Delivering better customer service
Achieving shorter delivery times Reducing labor and material costs
Globalization of business and markets
E-commerce
From a primary sector to a secondary sector economy
From a manufacturing to a service economy
E-service economy
Case of developing economies: can we leap-frog the manufacturing stage?
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International Division ofLabour
Source: From Joseph E. Stiglitz, Principles of Micro-
economics, 2nd ed. (New York: W.W. Norton andCompany, 1997), p. 58. 66ravikantswami@gmail.com
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The Value Chain and Its SupportFunctionsClick to edit Master text styles
Second level
Third level Fourth level Fifth level
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Division of LabourThe objective is to specialise jobs by
reducing them to their mostelementary tasks
Results from the simultaneousapplication of two principles
horizontal division of labour (Smith, Babbage)
vertical division of labour
(Taylor, introduction of management science; Gilbreth,time and motion studies)
The vertical division of labour implies:
A design and planning activity
A control activity 88ravikantswami@gmail.com
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The Transformation Processwithin OMClick to edit Master text styles
Second level Third level Fourth level Fifth level
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Input-Transformation-OutputRelationships for Typical Systems
Click to edit Master text styles
Second level Third level Fourth level Fifth level
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OM and the Service Industry
Application of OM to ServiceOperations
Batch cooking operations atMcDonalds
Telephone Banking
Call CentresServiceProduct Good
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Most Products Are aBundle
of Goods and ServicesClick to edit Master text styles
Second level Third level Fourth level Fifth level
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Differences Between Goods andServicesGoods Services
Tangible Intangible
Can be inventoriedCannot be inventoried
No interaction
between customer andprocess
Direct interaction between
customer and process
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Product Delivery Systems
Manufacturing Processes - customerare separate from the place ofproduction both geographically and interms of time Exceptions: B2B transactions
Manufacturing
process
Materials Goods Customer
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Service Delivery Systems
There are two basicstructures of service
delivery system..... 1. where customers participate 2. where customers' goods are
processeddeliveryService
system
Service
deliverysystem
CustomerCustomer
Goods
ProcessedGoods
Customer
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Front & Back Office
Key feature of service industry. Nowadays front andback offices are often separated geographically -and may even be in different continents
Back Office
Customers
Front Office - Servers(receptionist / dispatcher /
cashier etc.)
Division of labour
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