Operations management

11
Operations Management T.Rama Krishna Reddy 161452

Transcript of Operations management

Page 1: Operations management

Operations Management

T.Rama Krishna Reddy 161452

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Operations Management Definition

Operations management is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.

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Why Study Operations Management?

OperationsManagement

Business Education/Career Opportunities

Systematic Approachto Org. Processes

Increase Competitive Advantage/Survival

Cross-FunctionalApplications

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Key OM Concepts Efficiency - Doing something at the lowest

possible cost

Effectiveness - Doing the right things to create the most value for the organization

Value - Quality divided by price

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Transformations

Physical--manufacturing Locational--transportation Exchange--retailing Storage--warehousing Physicological--health care Informational--telecommunications

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Examples of Production SystemsSystem Inputs Conversion Output

(desired)Hospital Patients

MDs, NursesMedical SuppliesEquipment

Health Care HealthyIndividuals

Restaurant Hungry CustomersFood, ChefServersAtmosphere

Prepare FoodServe Food

SatisfiedCustomers

AutomobilePlant

Sheet SteelEngine PartsTools, EquipmentWorkers

Fabricationand Assemblyof Cars

High QualityAutomobiles

University High School GradsTeachers, BooksClassroom

Transferringof Knowledgeand Skills

EducatedIndividuals

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Front and Back Office

Front Office

Customer

Service Provider

Back Office

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Core “Factory Services”

Core Services are basic things that customers want from products that they purchase.

Quality Flexibility Speed Price (or production cost)

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Competitive Dimensions Cost Quality and Reliability Delivery

Flexibility Speed Reliability

Coping with Changes in Demand New Product Introduction

Speed Flexibility

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Balanced Scorecard1. Financial perspective

2. Internal perspective

3. Customer perspective

4. Innovation and learning perspective

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Thank You


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