Production and Operations Management: Manufacturing and Services

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CHASE AQUILANO JACOBS
Operations Management
For Competitive Advantage
Chapter 1
Introduction to the Field
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Chapter 1Overview Introduction to the Field

• Overview
• Operations Management
• Production System Defined
• Operations as a Service
• Process Orientation
• Historical Development of OM
• Current Issues in OM

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Overview

• What are the pressures facing businesses
• What are the customers demanding ?
• What are the shareholders demanding ?
• What are some Key Themes?
• Efficiency vs Effectiveness
• Given this mandate what is OM and how does it
  help the cause?

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What is Operations Management?Defined

• Operations management (OM) is defined as the
  design, operation, and improvement of the systems
  that create and deliver the firms primary
  products and services.

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What is a Production System?Defined

• A production system is defined as a user of
  resources to transform inputs into some desired
  outputs.

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Transformations

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

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Value-added services differentiate the
organization from competitors and build
relationships that bind customers to the firm in
a positive way.
Operations as a Service
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Examples of Value Added Services from Your
Companies

• Field Support
• Sales Support
• Problem Solving
• Information
• Other

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Process Orientation

• Describe a functional orientation vs a process
  orientation
• What are the advantages of a process orientation?
  

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Historical Development of OM

• JIT and TQC.
• Manufacturing Strategy Paradigm.
• Service Quality and Productivity.
• Total Quality Management and Quality
  Certification.

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Historical Development of OM (contd)

• Business Process Reengineering.
• Supply Chain Management.
• Electronic Commerce.

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Current Issues in OM

• Effectively consolidating the operations
  resulting from mergers.
• Developing flexible supply chains to enable mass
  customization of products and services.
• Managing global supplier, production and
  distribution networks.

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Current Issues in OM (contd)

• Increased commiditization of suppliers.
• Achieving the Service Factory.
• Achieving good service from service firms.
• What is the GOAL?