Chapter 1- Introduction to OPM with Activity

Page 1: Introduction to Operations Management

• Course Title: OPM 2103 Operations Management

• Institution: Higher Colleges of Technology

• Class 1 Focus: Introduction to Operations Management

Page 2: Course Welcome

• Message: Welcome to OPM 2103 Operations Management Course

• Institution: Higher Colleges of Technology

Page 3: Course Learning Outcomes

• CLO1: Understand the scope of Operations Management and its influence on competitiveness.

• Session Learning Outcomes:

  • 1.1: Define operations management and supply chain

  • 1.2: Identify differences and similarities between production and service operations

  • 1.3: Identify three major functional areas of organizations and explain interrelations

  • 1.4: Describe operations function and the nature of operations manager's job

Page 4: Understanding Operations Management

• Definition: Operations is the part of a business responsible for providing services or creating goods (core of business functions).

• Examples of Business Operations:

  • Restaurants, Retail Stores, Factories, Hospitals, Universities

Page 5: What is Operations Management?

• Definition: The management of systems/processes that create goods/services.

• Goods: Physical items (raw materials, finished products).

• Services: Activities providing time, location, form, or psychological value.

Page 6: Goods-Service Continuum

• Continuum Examples:

  • Goods: Automobile assembly, steelmaking

  • Services: Surgery, teaching

• Importance: Helps understand the spectrum between tangible products and services.

Page 7: Supply Chain Overview

• Definition: A sequence of organizations involved in producing and delivering a product/service.

• Components: Begins with suppliers and ends with the final customer.

Page 8: Example of a Supply Chain

• Product: Bread

• Process: Wheat farming to supermarket sale.

• Value Addition: Increases as it moves through the supply chain.

Page 9: Transformation Process

• Definition: Converting inputs (capital, labor, information) into outputs (goods/services).

• Processes Involved: Storing, transporting, repairing.

• Feedback Loop: Measurement and comparison against standards for control.

Page 10: Value Addition in Operations

• Concept: Value-added refers to the difference between input costs and the output value/price.

• Goal: To maximize value during the transformation process.

Page 11: Activity Instructions

• Activity Type: Discussion

• Task: Identify whether examples are goods or services.

• Time Limit: 5 minutes.

Page 12: Goods or Services Examples

• Examples:

  1. Handbag - Goods

  2. Teaching - Services

  3. Automobile - Goods

  4. Pizza - Goods

  5. Water bottle - Goods

  6. Doctor’s consultation - Services

  7. Laptop - Goods

  8. Car Wash - Services

  9. Car Towing - Services

  10. Haircut - Services

Page 13: Production vs. Service Operations

• Production: Tangible output (e.g., automobiles).

• Service: Acts (e.g., physician’s examination).

• Setting: Can happen in factories or elsewhere (e.g., restaurants).

Page 14: Comparison Points

• Factors: 1. Customer contact, 2. Labor content, 3. Uniformity of inputs, 4. Productivity measurement, 5. Quality assurance, 6. Inventory, 7. Wages, 8. Patent ability.

Page 15: Customer Contact

• High Contact Services: Interaction is key (e.g., healthcare).

• Low Contact Services: Minimal interaction (e.g., utilities).

Page 16: Productivity Measurement Challenges

• Variability: Productivity may vary significantly due to numerous factors affecting service jobs.

• Quality Assurance: More challenging in services due to real-time customer interaction.

Page 17: Inventory in Operations

• Inventory Use: Lower in services than in manufacturing.

• Limitations: Services cannot be stored must be provided on demand.

Page 18: Similarities between Production and Service Operations

• Similar Factors: Forecasting, process management, managing variations, cost productivity monitoring, supply chain management, location planning, inventory, quality control, scheduling.

Page 19: Activity Instructions

• Activity Type: Group Exercise

• Task: Read scenarios for discussion on production vs. service operations.

• Time Limit: 5 minutes.

Page 20: Production vs. Service Scenarios

• Scenario 1: Fast food restaurant operations

• Scenario 2: LED light manufacturing challenges

• Similarity Task: Identify a common factor in both.

Page 21: Major Functions in Organizations

• Area: Operations overlaps with sales and financing functions.

• Collaboration: Significant interaction due to interdependencies between functions.

Page 22: Overlapping Functions Visual

• Figure: Depict the relationship between operations, sales, and finance.

Page 23: Finance and Operations Cooperation

• Key Activities: Budgeting, investment analysis, provision of operational funds.

Page 24: Marketing's Role

• Focus: Selling/promoting products.

• Information Sharing: Demand forecasting and feedback with operations/design.

Page 25: Activity Instructions

• Activity Type: Group Exercise on business function interdependencies.

• Time Limit: 5 minutes.

Page 26: Business Function Interdependencies Scenarios

• Scenario: Operations Manager at VOX Cinemas tackling customer feedback and sales forecasting.

Page 27: Operations Function and Manager's Role

• Responsibilities: Involves product/service design, process selection, work system design, technology management.

Page 28: Operations System Example: Airline Company

• System Components: Airplanes, airport facilities, maintenance planning, service forecasting.

Page 29: Operational Responsibilities

• Key Activities: Ensure facility layout, scheduling, inventory management, quality assurance.

Page 30: Decision Making in Operations Management

• Types of Decisions:

  • System Design: Long-term, impacting relationships and commitments.

  • System Operation: Tactical, focusing on daily management.

Page 31: Activity Instructions

• Activity Type: Individual Exercise on decision types.

• Time Limit: 5 minutes.

Page 32: System Design vs. Operation Decisions

• Example Scenarios: Increase capacity, manage staff hours, upgrade facilities based on competitive pressure.

Page 33: Higher Colleges of Technology Contact Information

• Phone: 800 MyHCT (800 69428)

• Email: communication@hct.ac.ae

• Website: www.hct.ac.ae

• Address: Abu Dhabi, UAE

• Social Media: HCT_UAE, hctuae

• Thank You Message