Scribd Logo
Upload

Welcome to Scribd!

  • 11 views

    Introduction To OPMAN and Operations Strategy

    Uploaded by

    Margie Gonzales
    The document discusses operations management and provides context in 3 areas: 1) It explains why studying operations management is important as it deals with how goods and services are produced and transformed, and what operations managers do such as planning, organizing, and controlling critical aspects of production. 2) It outlines 10 critical decisions operations managers must make regarding key functions like process design, supply chain management, and maintenance. 3) It discusses operations strategy and how strategic planning and different generic and operational strategies can provide competitive advantages around factors like flexibility, quality, and delivery.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Introduction To OPMAN and Operations Strategy

    Uploaded by

    Margie Gonzales
    11 views6 pages
    The document discusses operations management and provides context in 3 areas: 1) It explains why studying operations management is important as it deals with how goods and services are produced and transformed, and what operations managers do such as planning, organizing, and controlling critical aspects of production. 2) It outlines 10 critical decisions operations managers must make regarding key functions like process design, supply chain management, and maintenance. 3) It discusses operations strategy and how strategic planning and different generic and operational strategies can provide competitive advantages around factors like flexibility, quality, and delivery.

    Original Title

    Introduction to OPMAN and Operations Strategy

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses operations management and provides context in 3 areas: 1) It explains why studying operations management is important as it deals with how goods and services are produced and transformed, and what operations managers do such as planning, organizing, and controlling critical aspects of production. 2) It outlines 10 critical decisions operations managers must make regarding key functions like process design, supply chain management, and maintenance. 3) It discusses operations strategy and how strategic planning and different generic and operational strategies can provide competitive advantages around factors like flexibility, quality, and delivery.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    11 views6 pages

    Introduction To OPMAN and Operations Strategy

    Uploaded by

    Margie Gonzales
    The document discusses operations management and provides context in 3 areas: 1) It explains why studying operations management is important as it deals with how goods and services are produced and transformed, and what operations managers do such as planning, organizing, and controlling critical aspects of production. 2) It outlines 10 critical decisions operations managers must make regarding key functions like process design, supply chain management, and maintenance. 3) It discusses operations strategy and how strategic planning and different generic and operational strategies can provide competitive advantages around factors like flexibility, quality, and delivery.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Production and Operations Management Why Study Operations Management?

    Production and Operations Management - OM is an integral function of any organization.


    - Production is the creation of goods and services.
    - To know how goods and services are produced
    - Operations Management (OM) is the set of activities
    that creates value in the form of goods and services by - To understand what operations managers do.
    transforming inputs into saleable tangible products
    and intangible services - OM is such a costly part of an organization.

    Organization Chart-Major Elements What Operations Managers Do?


    - plan
    Manufacturing Organization - organize
    - Staff
    OPERATIONS - lead
    -Teller scheduling - control
    - Check clearing
    -Collection 10 CRITICAL DECISIONS
    - Transaction processing 01 SERVICE, PRODUCT DESIGN
    - Facilities design layout
    - Vault operations 02 QUALITY MANAGEMENT
    - Maintenance
    - Security 03 PROCESS CAPACITY DESIGN

    FINANCE/ACCOUNTING 04 LOCATION
    - Investment
    - Securities 05 LAYOUT DESIGN
    - Real Estate
    - Accounting 06 HUMAN RESOURCES, JOB DESIGN
    - Auditing
    07 SUPPLY CHAIN MANAGEMENT
    MARKETING
    - Loans 08 INVENTORY MANAGEMENT
    Commercial
    Industrial 09 SCHEDULING
    Personal
    Mortgage 10 MAINTENANCE

    - Trust Department Where are the OM jobs?


    • Technology/Methods
    • Facilities/Space Utilization
    • Strategic Issues
    • Response Time
    • People/Team Development
    • Customer Service
    • Quality
    • Cost Reduction
    • Inventory Reduction
    • Productivity Improvement

    HISTORY OF OPERATIONS MANAGEME N T


    The present position where the operations
    management finds itself today has gone through a
    large number of stages to reach the present
    formidable stage.
    PROMI NENT PERSONAL ITIES I N OPERAT IONS - He showed that machine tools could make
    MANAGEME N T standardized parts to exact specifications.

    - He promoted the idea of “interchangeable parts” for


    the manufacture of firearms as a useful manufacturing
    concept.

    Adam Smith is considered to be the originator of the


    production management concept, as the division of
    labor concept given by him served as the foundation
    for many other concepts of the operations
    management in the following years

    According to Adam Smith the division of labor was a


    very handy tool having the following benefits –

     Higher skill accompanied with greater degree of


    dexterity is achieved by the workmen who are - Known as the Father of Scientific Management.
    performing work in repetition.
    - An American mechanical engineer who sought to
     Specialization in certain works or tasks by the improve industrial efficiency.
    workmen very often results in improvement of the
    various steps involved in the production methodology. - Stressed the importance of top management
    leadership and commitment in the improvement of
     Time is saved while changing from one activity to work methods.
    another.

    The English mathematician Charles Babbage was the


    first one to follow the concept advocated by Adam
    Smith. He advocated the concept of specialization of - Developed the concept of the assembly line where
    tasks as the next stage (logically related) to the the workers stood still while the materials or inputs
    division of labor are moving from one stage of the process to another.

    - Created Ford Motor Company

    - An American inventor of cotton gin (cotton engine).


    - Known as one of the early proponents of quality
    management.

    - Credited with teaching Japan quality control


    methods in post WW2.

    - Used statistics to analyze process.

    Operations in the Service Sector

    Repair and maintenance


    Government
    Food and Beverages
    Transportation
    Trade
    Insurance
    Real Estate
    Education
    Legal
    Medical
    Entertainment
    Professional occupations.

    Characteristics of Goods

    ·Tangible product
    ·Consistent product definition
    ·Production usually separate from consumption
    ·Can be inventoried
    ·Low customer interaction

    Characteristics of a Service

    ·Intangible
    ·Produced and consumed at simultaneously
    ·Unique
    Productivity 4. Maintaining and enhancing the skills of labor

    ·Enhancement of the transformation process – the 2. Capital


    relationships between inputs and outputs 3. Management

    ·May be improved by decreasing inputs while output


    remains constant or increasing output while retaining
    the same level of inputs

    The Economic System Transforms Inputs to Outputs What are the critical factors that management should
    ensure?
    Inputs
    - Land o The effective operations manager will ensure that
    - Labor available knowledge and technology are utilized.
    - Capital
    - Management o Effective use of capital rather than infusing
    additional capital.
    Process
    The economic system transforms inputs to outputs at o Education will play a major role in providing
    about an annual 2.5% increase in productivity (capital competent managers.
    38% of 2.5%, labor (10% of 2.5%), management (52%
    of 2.5%) 4. Service Productivity

    Outputs - Work is typically labor-intensive.


    - Goods and Services - Work is frequently individually processed.
    - Work is often an intellectual task performed by
    Productivity Measurement professionals.
    - Work is often difficult to mechanize and automate.
    Productivity = Units produced/ Inputs used - Work is difficult to evaluate for quality.

    Multi-Product Productivity =
    Output / Labor + material + energy + capital +
    miscellaneous

    Productivity = (order served)/(labor hours used)

    Measurement Problems:

    • Quality may change while the quantity of inputs and


    outputs remain constant.

    • External elements may cause an increase or


    decrease in productivity.

    • Precise units of measure may be lacking.

    Productivity Variables

    1.Labor

    There are 4 variables influencing labor productivity:

    1. Basic education
    2. Diet of the labor force
    3. Social overhead that makes labor available, such as
    transportation and sanitation
    Operations Strategy Strategies for Competitive Advantage
    An operations strategy is a set of decisions an
    organization makes regarding the production and 3 Generic Strategies
    delivery of its goods. • Differentiation
    • Cost Leadership
    Strategic Planning • Quick Response
    - refers to the process of determining the primary
    objectives of the entrepreneurship and then adopting 6 Operational Strategies
    courses of action and allocating resources to achieve • Flexibility
    those objectives. • Low Price
    • Delivery
    Steps in Strategic Planning • Quality
    • After-sale service
     Determination of primary objectives • Broad product line
     Adoption of courses of action
     Allocation of resources 10 STRATEGIC OM DECISIONS
    Quality
    Determination of Objectives Good and Service Design
    Process and Capacity Design
    Mission Statement Location Selection
    - refers to the basic description of the fundamental Layout Design
    nature, rationale, and direction of the firm. People and Work Systems
    Supply-Chain Management
    Strategic Objectives Inventory
    - refers to specific performance targets that the Scheduling
    entrepreneurship/owner hopes to accomplish Maintenance

    Adoption of Courses of Action Characteristics of High ROI Firms


    • High quality product
    A. SWOT ANALYSIS • High capacity utilization
    - is an organized method of assessing a firm's • High operating effectiveness
    strengths and weaknesses and the opportunities and • Low investment intensity
    threats in the environment that confront or will • Low direct cost per unit
    confront them.
    Identifying Critical Success Factors
    B. Forecasts of Future Sales Performance KEY EXTERNAL FACTORS
    Forecasts are supplementary tools for SWOT analysis.  POLITICAL CONDITIONS
    It is an estimate or prediction of the future sales or  LEGAL ENVIRONMENT
    income of the firm.  ECONOMIC CONDITIONS
     TECHNOLOGY
    Implementing Strategic Plans  COMPETITION
    1. Identifying the specific methods to be used.  MARKET
    2. Deploying the resources needed to implement the
    intended plans Identifying Critical Success Factors
    KEY INTERNAL FACTORS
     HUMAN RESOURCES
     FACILITIES AND EQUIPMENT
     FINANCIAL RESOURCES
     CUSTOMERS
     PRODUCTS AND SERVICES
     SUPPLIERS
    Defining Global Operations

    International Business
    - A firm that engages in cross-border transactions

    Multinational Corporation
    - A firm that has an extensive involvement in
    international business, owning or controlling facilities
    in more than one country.

    Global Company
    - Integrates operations from different countries, and
    views world as a single marketplace.

    Transnational Company
    - Seeks to combine the benefits of global- scale
    efficiencies with the benefits of local representatives.

    Multidomestic Strategy
    Operating decisions are decentralized to each country
    to enhance local responsiveness.

    Global Strategy
    Operating decisions are centralized and headquarters
    coordinates the standardization and learning between
    facilities.

    Transnational Strategies
    Exploits economies of scale and learning, as well as
    pressure for responsiveness, by recognizing that core
    competencies reside everywhere in the organization.

    International Strategy
    Global markets are penetrated using exports and
    licenses.

    You might also like