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    OM 1e PPT Chap01

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    taufiqridz

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    OM 1e PPT Chap01

    Uploaded by

    taufiqridz
    9 views23 pages

    Original Title

    OM_1e_PPT_Chap01

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    9 views23 pages

    OM 1e PPT Chap01

    Uploaded by

    taufiqridz

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 23

    Chapter 1

    Introduction to
    Operations Management
    and Productivity
    Learning Outcomes
    At the end of this chapter, you should be able to:
    ♦ Define operations management
    ♦ Discuss the operations system’s basic components
    ♦ Understand the reasons for studying Operations Management
    ♦ Explain the roles of operations managers
    ♦ Understand the objectives of operations management
    ♦ Discuss the characteristics of services and manufactured products
    ♦ Explain the relationship between operations and other functions
    ♦ Understand productivity and its measurement
    ♦ Identify the challenges in operations management
    ♦ Discuss the trends in operations management
    Definition of Operations Management

    Activities related to the creation of goods or services by


    converting or transforming inputs into outputs.
    Operations System

    An operations system is defined as the part of an


    organisation that produces the organisation’s physical
    goods and services.
    Components of Operations System
    the basic materials needed for the purpose of producing goods and
    Inputs services

    Transformation the activities related to the conversion of inputs into outputs that
    involve operating strategies
    process

    Outputs the final results obtained after the transformation


    process, which include goods or services

    acts as a control mechanism, measuring the actual performance against


    Feedback the expected or planned performance
    Operations System
    Importance of Operations Management
    • One of the major functions in an organization
    • Enables us to know how goods and services are produced
    • Allows us to understand what operations managers do
    • Ensures timely delivery of the products
    • Improves the overall productivity
    Roles of Operations Managers

    Planning Organising Staffing

    Leading Controlling
    Objectives of Operations Management
    Operations for Goods and Services
    Characteristics of goods and services
    Relationship between Operations
    and Other Functions
    The ratio of outputs (goods and services) divided by
    the inputs/resources (e.g.,labour and capital).

    Productivity
    1 Low unemployment

    Why is
    Productivity 2 Improved living standards for
    the nation
    Important?
    3 Reduced operating costs and
    increased revenue
    Productivity Measurement

    Single factor Multifactor


    productivity productivity

    Uses just one resource


    Uses combined inputs
    input

    E.g. labour, capital,


    E.g. labour-hours energy, materials, and
    purchased services
    Productivity Measurement

    Single factor productivity = Units produced (outputs)


    Inputs used

    Multifactor productivity = Outputs


    Labour + Material + Energy + Capital + Miscellaneous
    Productivity Measurement:
    Single factor productivity
    Productivity Measurement:
    Multifactor productivity
    Productivity Measurement
    Productivity
    Measurement

    SOLUTION TO EXAMPLE 1.3


    Productivity Variables

    Labour Capital Management


    Challenges in Operations Management
    • Global focus
    • Supply-chain partnering
    • Sustainability
    • Rapid product development
    • Mass customisation
    • Just-in-time performance
    • Empowering employees
    Trends in Operations Management

    Mobile
    Automation Outsourcing Communication
    Tools
    Thank You

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