Introduction to Operations Management

1
Introduction to Operations
Management
2
What is Operations Management?

• The business function responsible for planning,
  coordinating, and controlling the resources
  needed to produce a companys products and
  services

3
Typical Organization Chart
4
OMs Transformation Role
5
Differences between Manufacturers and Service
Organizations

• Services
• Intangible product
• Product cannot be inventoried
• High customer contact
• Short response time
• Labor intensive

• Manufacturers
• Tangible product
• Product can be inventoried
• Low customer contact
• Longer response time
• Capital intensive

6
Similarities-Service/Manufacturers

• All use technology
• Both have quality, productivity, response
  issues
• All must forecast demand
• Each will have capacity, layout, and location
  issues
• All have customers and suppliers
• All have scheduling and staffing issues

7
Trends in OM

• Service sector growing to 80 of non-farm jobs
• Global competitiveness
• Demands for higher quality
• Huge technology changes
• Time based competition
• Work force diversity

8
OM Decisions
9
Todays OM Environment

• Customers demand better quality, faster
  deliveries, and lower costs
• Increased cross-functional decision making
• Recognized need to better manage information
  using ERP (Enterprise Resource Planning) and CRM
  (Customer Relationship Management) systems

10
Business Information Flow