Operations Management

Operations ManagementKristina PetersonMGT 305 Operations ManagementSouthern States University-Newport BeachDr. Peggy Bilbruck15 March, 2015

What is Operations Management?

Operations Management deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.

-Reputation on Market-Innovations-Human Resources-Financial resources-Performance-Social Responsibility-Profitability

The Strategic Role and Objectives of Operations StrategyThe Design of Products and Services

Major factors in product and service design strategy:CostQualityTime-to-marketCustomer satisfactionCompetitive advantage

Product and service design or redesign should be closely tied to an organizations strategy

The main advantage of qualitative forecasting : - Ability to predict changes in sales patterns and customer behavior based on the experience and judgment of senior executives and outside experts. - Management can use the qualitative inputs in conjunction with quantitative forecasts and economic data to forecast sales trends. - Quantitative forecasting uses past results to predict future trends, while economic data includes short- and long-term interest rates and unemployment levels. http://smallbusiness.chron.com/advantages-qualitative-forecasting-37020.html Forecasting

Supply Chain Planning And ControlSupply chain management is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace.Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible.Supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings.

http://www.investopedia.com/terms/s/scm.aspEnterprise Resource Planning (ERP)Enterprise Resource Planning system includes: Forecasting Management of projects and programs Maintaining information about products and technologies Cost management, finance, human resources, etc.

JIT and Lean Operations

JIT involves:producing and delivering finished goods just in time to be soldpartly finished goods just in time to be assembled into finished goodsparts just in time to go into partly finished goodsmaterials just in time to be made into parts.Just-In-Time (JIT) is a very simple idea but one that is essential in modern supply chain management. JIT sets out to cut costs by reducing the amount of goods and materials a firm holds in stock. Total Quality Management (TQM)TQM, while emphasizing "quality" in its name, is really a philosophy of management.Quality and price are central in philosophy of TQM.

http://www.inc.com/encyclopedia/total-quality-management-tqm.html

Resources:

Principles of operations management. (Heizer, J.and Barry Render,B.)

http://smallbusiness.chron.com/advantages-qualitative-forecasting-37020.html

http://www.investopedia.com/terms/s/scm.asp

http://www.inc.com/encyclopedia/total-quality-management-tqm.html