opMan

Production

is the creation of goods & services.

Operations Management

is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

Marketing

generates demand

Production/Operations

creates the product

Finance/Accounting

tracks how well the organization is doing, pay bills, collects the money

OM Operations Management

is one of the three major functions of any organization

(marketing, finance, and operations)

3 major functions.

Planning

Organizing

Staffing

Leading

Controlling

Basic management Functions

Global Focus

Just-in-time performance

Supply chain partnering

Rapid product development

Mass customization

Empowered Employees

Environmentally sensitive production

Ethics

New Trends in OM

Productivity

is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital)

Quality

may change while the quantity of inputs and outputs remains constant

External Elements

may cause an increase or decrease in productivity

Precise Units

of measure may be lacking

Labor

contributes about 10% of the annual increase

Capital

contributes about 38% of the annual increase

Management

contributes about 52% of the annual increase

Quality

is conformance to requirement or specifications.

Moment of Truth

is when an interaction occurs between a customer and the service provider that can leave a lasting positive or negative impression on a customer

tangibles

Reliability

Responsiveness

Assurance

Empathy

Five quality dimension

Highly satisfied

If perceived "actual” quality better than expected

Dissatisfied

If perceived "actual” quality is less than what expected

Just Satisfied

HSC pass more word of mouth than _____ customers tend to

CRM

is a technology-enabled business strategy whereby companies leverage increased customer knowledge to build profitable relationships.

Mobile CRM

Palm pilots, web phones, pagers are becoming less expensive and more widely used

Netsourcing -Application Services Providers

ASP work better in smaller organizations less customization

AA(american airlines)

Advantage Frequent Flyer Program

Airlines

Barclays

Banks