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PRODUCTION & OPERATIONS
MANAGEMENT
INTRODUCTION TO
OPERATIONS
MANAGEMENT
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•Operations Management• Operations management deals wit pro!ess tat
prod"!e goods and ser#i!es
or
• Operations management re$ers to te dire!tions and!ontrol o$ te pro!esses tat !on#erts inp"t into
o"tp"t
Pro!esses are te $"ndamental a!ti#ities tatorgani%ations "se to do wor and a!ie#e teir goals'
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(at Operations and S"ppl) Cain
Managers Do
• (at is Operations Management*• design+ operation+ and impro#ement o$ prod"!ti#e s)stems
• (at is Operations*• a $"n!tion or s)stem tat trans$orms inp"ts into o"tp"ts o$ greater
#al"e• (at is a Trans$ormation Pro!ess*
• a series o$ a!ti#ities along a value chain e,tending $rom s"pplierto !"stomer
• a!ti#ities tat do not add #al"e are s"per$l"o"s and so"ld -e
eliminated
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Operations as a
Trans$ormation Pro!ess
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INPUT•Material•Ma!ines•5a-or
•Management•Capital
TRANS6ORMATION
PROCESS
OUTPUT•Goods•
Ser#i!es
6eed-a! & Re7"irements
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Operations 6"n!tion
• Operations• Mareting
• 6inan!e and
A!!o"nting
• 8"man
Reso"r!es
• O"tside
S"ppliers
029
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8istori!al E#ents in
Operations Management
Era Events/Concepts Dates Originator
Industrial
Revolution
Steam engine 1769 James Watt
Division of labor 1776 Adam Smith
Interchangeable parts 1790 Eli Whitney
Scientific
Management
Principles of scientific
management1911 Frederick W. Taylor
Time and motion studies 1911Frank and Lillian
Gilbreth
Activity scheduling chart 1912 Henry GanttMoving assembly line 1913 Henry Ford
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8istori!al E#ents in
Operations Management
Era Events/Concepts DatesOriginator
Quality
Revolution
JIT (just-in-time) 1970s Taiichi Ohno (Toyota)
TQM (total quality
management)
1980sW. Edwards Deming,
Joseph JuranStrategy and
operations1980s
Wickham Skinner,
Robert Hayes
Reengineering 1990sMichael Hammer,
James Champy
Six Sigma 1990s GE, Motorola
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8istori!al E#ents in
Operations Management
Era Events/Concepts DatesOriginator
Internet
Revolution
Internet, WWW, ERP,
supply chain management
1990s ARPANET, Tim
Berners-Lee SAP,
i2 Technologies,ORACLE, Dell
E-commerce 2000s Amazon, Yahoo,
eBay, Google, and
othersGlobalization WTO, European Union,
Global supply chains,
Outsourcing, Service
Science
1990s
2000s
China, India,
emerging
economies
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8istori!al E#ents in
Operations Management
Era Events/Concepts DatesOriginator
Green
Revolution
Global warming, An
Inconvenient Truth, Kyoto
Today Numerous
scientists,
statesmen and
governments
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Prod"!ti#it) and Competiti#eness
• Competitiveness• degree to wi! a nation !an prod"!e goods and
ser#i!es tat meet te test o$ international marets
• Productivity• ratio o$ o"tp"t to inp"t
• Output• sales made+ prod"!ts prod"!ed+ !"stomers ser#ed+
meals deli#ered+ or !alls answered
• Input
• la-or o"rs+ in#estment in e7"ipment+ material "sage+or s7"are $ootage
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Meas"res o$ Prod"!ti#it)
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Os-orne Ind"stries
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C6*C8
C7*C9
C5/C6
C5/C7
C5/C13
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