The APICS Dictionary defines Operations Management as:

1
The APICS Dictionary defines Operations
Management as

• The planning, scheduling and control of
  activities that transform inputs into finished
  goods and services

2

• A field of study that focuses on the effective
  planning, scheduling, use and control of a
  manufacturing or service organization through the
  study of concepts from design engineering,
  industrial engineering, management information
  systems, quality management, production
  management, inventory management, accounting and
  other functions as they affect the operation.

3
Operations A systems view

• Inputs
• Operations
• Extraction
• Growth and change
• Tangible conversion
• Intangible conversion
• Hybrid conversion
• Output

Input
Process
Output
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The product life cycle

• Every product and service follows a life cycle
  that spans
• Planning
• Introduction
• Growth
• Maturity
• Decline
• Healthy companies manage their product and
  service offerings to insure a balanced portfolio

Sales
Dollars
Profit
Plan Intro Growth Maturity Decline
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The Process Life Cycle and the Learning Curve
Manufacturing Cost per unit
Start-up
Maturation
Stabilization or Decline
Rapid Growth
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Y(u)au-b
a hrs to process 1st unit b measure of hrs
required to produce 2n vs n units uunits
processed
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Positioning Strategies and the Product / Process
Matrix
Process Focus
Job Shop
Large Batch
Flow Pattern
Assembly Line
Product Focus
Product Volume
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Process Decisions
Flexibility
More resource flexibility More customer
involvement
Flow Pattern
More vertical integration More capital intensity
Efficiency
Product Volume
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Entrance and exit strategies
Startup - decline
Startup - maturity
Flow Pattern
Growth - maturity
Growth - decline
Product Volume
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Dimensions of Differentiation

• High quality
• performance
• features
• reliability
• conformance
• durability
• serviceability
• aesthetics
• perceived quality
• Cost

• Time-based
• fast delivery
• consistent delivery
• delivery reliability
• development speed
• Flexibility
• product customization
• service customization
• volume flexibility

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Porters Generic Strategies

• Cost leadership
• efficient facilities with low overhead
• low-cost design with low labor costs
• automation and global scale
• Differentiation
• select attribute important to buyer
• differentiate at a premium price (gt cost)
• Focus
• serve one segment at exclusion of others

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Terry Hill

• Two major questions that must be answered
• What are the order qualifying criteria?
• What are the order winning criteria?
• The strategic role of operations
• To provide a process that will give the firm an
  advantage in the marketplace
• To provide coordinated support for the way
  products and services win orders away from other
  firms

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Strategic Initiatives

• Business Process Reengineering
• Just-in-Time Management
• Time-based Competition
• Competing on Quality

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The Promise of Integration - SAP R/3 View of
Manufacturing
Accounting and Human Resource Management