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OPERATION MANAGEMENT
  Ulfi-Icha-Netty-Namie-Lulu
The Role Of Operation Management
   Operation Management : The term refers to the
    transformation process that converts resources
    into finished goods.
.
“Managers need to be familiar with OM concepts in order
to achieve goals efficiently and effectively”

A. Services & Manufacturing
 Manufacturing organizations - organizations that
  produce physical goods.
 Service organizations - organizations that produce
  nonphysical products in the form of services.
B. Managing Productivity
C. Strategic Role of Operation Management- Organizational
       strategy to establish & maintain global leadership.
Value Chain Management/VCM

   Value              -             the            performance
    characteristics, features, attributes, and any other aspects
    of goods and services for which customers are willing to
    give up resources.
   Value chain - the entire series of organizational work
    activities that add value at each step from raw materials
    to finished product.
   Value chain management - the process of managing the
    sequence of activities and information along the entire
    value chain
of VCM



   Create value chain strategy that meets up and exceed
    customer’s needs and desires and allows for full and
    seamless integration among all members of the chain

   4 primary benefit of VCM
         Improved procurement
         Improved logistics
         Improved product development
         Enhanced customer order management
Value Chain Strategy
   Obstacles to Value Chain
    Management

                               Note :

                               Organizational barriers
                               are the most difficult
                               obstacle to handle.
Current Issues in Managing Operations
   Technology’s role                    Quality Initiatives
     Increased automation and
                                             Planning for quality
      integration of production
      facilities   with    business          Organizing and leading for
      systems to control costs                quality
        Predictive
                                             Controlling for quality
         maintenance,       remote
         diagnostics, and utility        Mass Customization &
         cost savings                     Lean Organization
   Quality - the ability of a
    product or service to reliably
    do what it’s supposed to do
    and to satisfy customer
    expectations
   Quality Goals

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Presentation VCS

  • 1. OPERATION MANAGEMENT Ulfi-Icha-Netty-Namie-Lulu
  • 2. The Role Of Operation Management  Operation Management : The term refers to the transformation process that converts resources into finished goods.
  • 3. . “Managers need to be familiar with OM concepts in order to achieve goals efficiently and effectively” A. Services & Manufacturing  Manufacturing organizations - organizations that produce physical goods.  Service organizations - organizations that produce nonphysical products in the form of services. B. Managing Productivity C. Strategic Role of Operation Management- Organizational strategy to establish & maintain global leadership.
  • 4. Value Chain Management/VCM  Value - the performance characteristics, features, attributes, and any other aspects of goods and services for which customers are willing to give up resources.  Value chain - the entire series of organizational work activities that add value at each step from raw materials to finished product.  Value chain management - the process of managing the sequence of activities and information along the entire value chain
  • 5. of VCM  Create value chain strategy that meets up and exceed customer’s needs and desires and allows for full and seamless integration among all members of the chain  4 primary benefit of VCM Improved procurement Improved logistics Improved product development Enhanced customer order management
  • 7. Obstacles to Value Chain Management Note : Organizational barriers are the most difficult obstacle to handle.
  • 8. Current Issues in Managing Operations  Technology’s role  Quality Initiatives  Increased automation and  Planning for quality integration of production facilities with business  Organizing and leading for systems to control costs quality  Predictive  Controlling for quality maintenance, remote diagnostics, and utility  Mass Customization & cost savings Lean Organization  Quality - the ability of a product or service to reliably do what it’s supposed to do and to satisfy customer expectations  Quality Goals