introduction to om
DESCRIPTION
Week 1 introductionTRANSCRIPT
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Introduction to Operations Management
Operations Managementby
Ken Hogan
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Operations Management is:
The business function responsible for
planning, coordinating, and controlling
the resources needed to produce products
and services for a company
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Operations Management is:
A management function
An organization’s core function
In every organization whether Service or
Manufacturing, profit or Not for profit
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Typical Organization Chart
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What is Role of OM?
OM Transforms inputs to outputs
Inputs are resources such as
People, Material, and Money
Outputs are goods and services
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OM’s Transformation Process
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OM’s Transformation Role
To add value
Increase product value at each stage
Value added is the net increase between output
product value and input material value
Provide an efficient transformation
Efficiency – means performing activities well for
least possible cost7
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Goods & Services
Services
Intangible product
Product cannot be inventoried
High customer contact
Short response time
Labor intensive
Manufacturing
Tangible product
Product can be inventoried
Low customer contact
Longer response time
Capital intensive8
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On the other hand…
Both use technology
Both have quality, productivity, & response issues
Both must forecast demand
Both will have capacity, layout, and location issues
Both have customers, suppliers, scheduling and staffing issues
Manufacturing often provides services
Services often provides tangible goods
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