Chap 1 Opman

CHAPTER 1: OPMAN
WHAT IS THE RELEVANCE OF OPERATIONS MANAGEMENT?

It has signifanct impact on a business’ competitive success and competitiveness.
To highlight, the following are reasons why TQM is relevant:
1. Customer-Centricity - TQM focuses on meeting the needs of the customer to achieve customer satisfaction by
delivering high quality products and services.
2. Continous Improvement and Innovation - TQM focuses on creating a culture of innovation and efficiency to achieve
continous improvement.
3. Cost Efficiency and Resource Optimization - Operations Management plays a vital role in optimizing resources,
reducing waste, and improving productivity.
4. Globalization and Supply Chain Management - TQM helps in streamlining the production process by improving
productivity and efficiency if the company has multiple supply chains worldwide.
5. Quality and Reputation Management - TQM ensures that the customers are getting what they need at the highest
quality possible while still being at the most minimum costs. This leads to the business gaining higher reputation.
6. Data-Driven Decision Making - Operations Management and TQM relies on statistical data methods to make informed
decisions.
7. Employee Engagement and Empowerment - TQM encourages the involvement of employees, fostering a culture of
engaging teamwork.
8. Sustainability and Social Responsibility - TQM can be utilized to promote environmental, work, and ethical
responsibility.
What exactly is operations management? Total Quality Management?
GOODS VS SERVICES
GOODS SERVICES
Tangible and physical products produced, manufactured, Non-physical or intangible actions that fufill the needs of
or traded in the market. customers.
OPERATIONS MANAGEMENT TOTAL QUALITY MANAGEMENT
Operations Management is the discipline concerned with The comprehensive approach to continously improve
designing, planning, organizing, and controlling the the production process, quality of products, and services
processes that transform inputs into goods and services through the involvement of all employees.
while also maintaining efficiency, effectiveness, and the
optimization of resources.
It includes: Forecasting, Planning, Scheduling, Managing

💡 Initially popularized by W. Edwards Deming,
Joseph Juran, and Philip Crosby
Inventories, Assuring Quality, Motivating employees, etc…
KEY DIFFERENCES BETWEEN MANUFACTURING AND SERVICES
MANUFACTURING SERVICES
UNIFORMITY OF INPUT High Low
LABOR CONTENT Low High
UNIFORMITY OF OUTPUT High Low
MEASUREMENT OF PRODUCTIVITY Easy Difficult
PRODUCTION AND DELIVERY - -
QUALITY ASSURANCE High Low
AMOUNT OF INVENTORY - -
CHAPTER 1: OPMAN 1
THE DECISION MAKING OF AN OPERATIONS MANAGER
Operations managers make informed decisions based the available information and various options to achieve and act out the
most appropriate course of action.
THE FIVE QUESTIONS
What resources in what amount
When is it needed
Where should the work be done
How should the work be designed
Who should do the work
SYSTEM DESIGN VS SYSTEM OPERATIONS
SYSTEM DESIGN SYSTEM OPERATION

The planning of the sytem or structure of a business The day-to-day management and execution of the business
organization to meet the needs of the customer processes and activities
Capacity planning - determining the optimal level of Personnel Inventory and Scheduling - asessing the
resources skills and capacity of the workforce and assigning them
appropriate task schedules.
Location Planning - selecting the most suitable
geographical location for the business Project Management - planning, organizing, and
controlling resources to achieve a target goal under
Arrangement of departments - proper arrangements of
defined constraints.
units of production to gain efficiency
Product and service planning - planning and improving

products.
Acquisition and placement of equipment - Identifying

the appropriate machinery and equipment.
MODELS OF DECISION MAKING

Quantitative Approach - rely on quantitative numerical data to arrive at the best possible choice. Particularly useful when there
are multiple variables involved.
Linear Programming, Decision trees, Simulation, and Optimization techniques.
Analysis of Tradeoffs - decision making that compares the advantages and disadvanatages of various alternatives.
Systems Approach - The approach in which the interconnectedness of the business system as a whole is acknowledged and
decisions are made accordingly.
Suboptimization - When different departments are optimized based on their own needs without regards to the entire system to
achieve efficiency.
Models are an abstraction (representation) of reality. They can be:
Physical - a physical representation of their counterpart. Ex: Scale-model buildings
Schematic - a model that has little representation of their counterpart Ex: Graphs, pie-charts, etc…
Mathematical - a model that bears no resemblance to the reality they represent, instead it is presented in quantitative data. Ex:
Formulas and equations.
THE THREE MAJOR AREAS OF A BUSINESS
CHAPTER 1: OPMAN 2
CHAPTER 1: OPMAN 3

Chap 1 Opman

Uploaded by

Copyright:

Available Formats

Chap 1 Opman

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chap 1 Opman

Uploaded by

Copyright:

Available Formats

CHAPTER 1: OPMAN

WHAT IS THE RELEVANCE OF OPERATIONS MANAGEMENT?

To highlight, the following are reasons why TQM is relevant:

What exactly is operations management? Total Quality Management?

OPERATIONS MANAGEMENT TOTAL QUALITY MANAGEMENT

It includes: Forecasting, Planning, Scheduling, Managing

KEY DIFFERENCES BETWEEN MANUFACTURING AND SERVICES

UNIFORMITY OF INPUT High Low

LABOR CONTENT Low High

UNIFORMITY OF OUTPUT High Low

MEASUREMENT OF PRODUCTIVITY Easy Difficult

PRODUCTION AND DELIVERY - -

QUALITY ASSURANCE High Low

What resources in what amount

Where should the work be done

How should the work be designed

Who should do the work

SYSTEM DESIGN VS SYSTEM OPERATIONS

SYSTEM DESIGN SYSTEM OPERATION

Product and service planning - planning and improving

Acquisition and placement of equipment - Identifying

MODELS OF DECISION MAKING

Linear Programming, Decision trees, Simulation, and Optimization techniques.

Models are an abstraction (representation) of reality. They can be:

Physical - a physical representation of their counterpart. Ex: Scale-model buildings

THE THREE MAJOR AREAS OF A BUSINESS

You might also like