Module 1: OVERVIEW OF OPERATIONS MANAGEMENT

COST FOCUS

(1776-1880)

QUALITY FOCUS

(1980-1995)

CUSTOMIZATION FOCUS

(1995-2005)

GLOBALIZATION FOCUS

(2005-2020)

OPERATIONS MANAGEMENT

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

Inputs

Land, Labor, Capital, Information

Value Added

→ Inputs→Transformation/ conversation process →Outputs → Control →

Outputs

Goods, Services

GOODS

are physical items that include raw materials, parts, and subassemblies.

SERVICES

are activities that provide some combination of time, location,

Goods

Tangible

Can be kept in inventory

Standardized and similar

Limited customer interaction

Automation is possible

Produced at a fixed facility

Easy to evaluate (Quality)

Often has residua

l value

Services

Intangible

Produced and consumed simultaneously

Unique

High customer interaction

Often knowledge based

Services dispersed

Hard to evaluate

Reselling is unusual

Organization

Finance,Operations,Marketing

Finance

Securing financial resources at favorable prices and allocating those resources.

Operations

Producing the goods and delivering the services offered by the organization.

Marketing

Assessing consumer wants and needs, selling and promoting the organization`s goods and services.

SCOPE OF OPERATIONS

MANAGEMENT

Forecasting

Capacity Planning

Facilities and Layout

Scheduling

Managing Inventories

Assuring Quality

Motivating and Training Employees

Locating Facilities