Intr的oduction to Operations Management(PS).ppt

? Wiley 2007 * Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid Nada R. Sanders 3rd Edition ? Wiley 2007 PowerPoint Presentation by R.B. Clough – UNH M. E. Henrie - UAA ? Wiley 2007 * What is Operations Management? The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services ? Wiley 2007 * What is Operations Management? It is a management function Organization’s core function Every organization has OM function Service or Manufacturing For profit or Not for profit ? Wiley 2007 * Typical Organization Chart ? Wiley 2007 * What is Operations Management Role? OM Transforms inputs to outputs Inputs are resources such as People, Material, and Money Outputs are goods and services ? Wiley 2007 * OM’s Transformation Process ? Wiley 2007 * OM’s Transformation Role To add value Increase product value at each stage Value added is the net increase between output product value and input material value Provide an efficient transformation Efficiency – perform activities well at lowest possible cost ? Wiley 2007 * Goods Services Services Intangible product Product cannot be inventoried High customer contact Short response time Labor intensive Manufacturing Tangible product Product can be inventoried Low customer contact Longer response time Capital intensive ? Wiley 2007 * On the other hand… Both use technology Both have quality, productivity, response issues Both must forecast demand Both will have capacity, layout, and location issues Both have customers, suppliers, scheduling and staffing issues Manufacturing often provides services Services often provides tangible goods ? Wiley 2007 * Hybrid organizations Some organizations are a blend of service/manufacturing/quasi-manufacturing Quasi-Manufacturing (QM) organizations QM characteristics include Low customer contact Capital Intensive ? Wiley 2007 * Improving Products /templates/sto