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19- ? Prentice Hall, 2002 Chapter 19 OPERATIONS AND VALUE CHAIN MANAGEMENT ? Jianjun Zhang 19-* Learning Objectives You should learn to: Describe the role of the transformation process in operations management Explain why operations management is important to all types of organizations Define value chain management Discuss the goal of value chain management Explain the organizational and managerial requirements for value chain management ?Jianjun Zhang 19-* Learning Objectives (cont.) You should learn to: Describe the benefits of and obstacles to value chain management Discuss technology’s role in operations management Describe how quality affects operations management Explain ISO 9000 and Six Sigma ? Jianjun Zhang 19-* What Is Operations Management? Operations Management the design, operation, and control of the transformation process that converts such resources as labor and raw materials into goods and services that are sold to customers every organization has an operations system that creates value by transforming inputs into outputs every unit in an organization also has an operations system ?Jianjun Zhang 19-* The Operations System People Technology Capital Equipment Materials Information Inputs Outputs Goods Services Transformation Process ? Jianjun Zhang 19-* Why Is Operations Management Important? Encompasses Services and Manufacturing manufacturing organization - produces physical goods service organization - produces nonphysical outputs in the form of services U.S. economy currently dominated by the creation and sale of services Managing Productivity productivity - overall output of goods or services divided by the inputs needed to generate that output increasing productivity is key to global competitiveness productivity is a composite of people and operations variables ?Jianjun Zhang 19-* Deming’s 14 Points for Improving Management’s Productivity Jianjun Zhang 19-* Importance Of Operations Management (cont.) Strategic Role of
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