Operations Management (Slides)

1-INTRO

1-INTRO

Operations System

Processes that change or transform inputs into outputs

What is Operations

Managing the transformation process

INPUT > TRANS PRO > OUTPUT

Processes can involve both (2)

Goods and services

Ex of Processes:

Fabric > Factory > Clothes

Order > Kitchen > Meal

Supply Chain Management

Management of the flow of information, products, and services across a network of customers, enterprises, and supply chain partners

Difference between supply chain and operations

Ops is about how a company makes things, while SCM is about how those things get to the end user

Globalization

the process of increasing connections and interdependence among world cultures and economies

Why go global?

• Favourable costs

• Access to international markets

• Response to changes in demand

• Reliable sources of supply

• Latest trends & tech

Why is there an increase in globalization?

Results from the internet and falling trade barriers

Competitiveness

degree to which a nation can produce goods and services that meet the test of international markets

Productivity

the ratio of output to input

Competitiveness

degree to which a nation can produce goods and services that meet the test of international markets

Input

labour hours, investment in equipment, materials usage or sq footage

Output

Sales made, products produced, customers served, meals delivered or calls answered

Strategy and Operations (5)

• how mission of a company is accomplished

• provides direction for achieiving a mission

• unites the organization

• provides consistency in decisions

• keeps organization moving in the right direction

5 Strat Formulation Steps

1) Defining a primary task

2) Assessing core competencies

3) Determining order winners and order qualifiers

4) Positioning the firm

5) Deploying the strategy