Introduction to om demo
- 1. Introduction to Operations Management Operations Management by Ken Hogan 1
- 2. Operations Management is: The business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company 2
- 3. Operations Management is: A management function An organization’s core function In every organization whether Service or Manufacturing, profit or Not for profit 3
- 4. Typical Organization Chart 4
- 5. What is Role of OM? OM Transforms inputs to outputs Inputs are resources such as People, Material, and Money Outputs are goods and services 5
- 6. OM’s Transformation Process 6
- 7. 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 – means performing activities well for least possible cost 7
- 8. Goods & Services Manufacturing Services Tangible product Intangible product Product can be Product cannot be inventoried inventoried Low customer contact High customer contact Longer response time Short response time Capital intensive Labor intensive 8
- 9. 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 9
Editor's Notes
- #2: Reid & Sanders, Operations management, c Wiley 2010