OM Lec1 Intro to OM

23

Transcript of OM Lec1 Intro to OM

Page 1: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 1/23

Page 2: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 2/23

Operations

Management

Page 3: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 3/23

¨ 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

Page 4: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 4/23

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.

Page 5: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 5/23

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

Page 6: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 6/23

Operations

Management

Operations and Productivity

Page 7: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 7/23

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

Page 8: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 8/23

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

Page 9: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 9/23

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

Page 10: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 10/23

Summary Model of the OM FieldMarketplace

Corporate Strategy

Operations Strategy

Operations

Management

People Plants

Planning and Control Systems

Parts Process

Page 11: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 11/23

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.

Page 12: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 12/23

 Next Process is the Customer!

TRANSFORMATION

PROCESSINPUTS OUTPUTSSUPPLIER 

Value added 

•A process has customers, suppliers, and

 process managers!

CUSTOMER 

Page 13: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 13/23

Organizational Functions

¨ Marketing

¨ Gets customers

¨ Operations

¨ creates product or service

¨ Finance/Accounting

¨ Obtains funds

¨ Tracks money © 1995 Corel Corp.

Page 14: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 14/23

Functions - Airline

OperationsFinance/

AccountingMarketing

Ground

Support

Flight

Operations

Facility

MaintenanceCatering

Airline© 1984-1994 T/Maker Co.

Page 15: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 15/23

Functions - Bank 

OperationsFinance/

AccountingMarketing

Check

Clearing

Teller 

Scheduling

Transactions

ProcessingSecurity

Commercial Bank© 1984-1994

T/Maker Co.

Page 16: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 16/23

Functions - Manufacturer 

OperationsFinance/

AccountingMarketing

Production

ControlManufacturing

Quality

ControlPurchasing

Manufacturing

Page 17: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 17/23

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

Page 18: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 18/23

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 

Page 19: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 19/23

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. 

Page 20: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 20/23

Contributions from

¨ Human Factors

¨ Industrial Engineering

¨ Management Science

¨ Biological Science

¨ Physical Sciences¨ Information Science

Page 21: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 21/23

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)

Page 22: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 22/23

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!

Page 23: OM Lec1 Intro to OM

7/27/2019 OM Lec1 Intro to OM

http://slidepdf.com/reader/full/om-lec1-intro-to-om 23/23

What Operations Managers Do

¨ Plan

¨ Organize

¨ Staff 

¨ Lead

¨ Control¨ Improve