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introduction to operations management notes

29. november, 2020

Mai Ajánlat

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Global Text Project, Business Fundamentals. The active role of operations: – Inputs become Outputs after some Transformation (Process or Operation) – Food processing example: It does not matter whether the organization is a for-profit company, a non-profit organization (religious organizations, hospitals, etc. A teacher may teach you a topic, and another teacher may teach you the same topic in another course. While the managers are involved in planning, organizing and controlling, operations managers have the direct responsibility of getting the … DBA 1651 PRODUCTION MANAGEMENT 2 NOTES Anna University Chennai INTRODUCTION TO PRODUCTION AND OPERATION MANAGEMENT 1.1 INTRODUCTION This unit starts with a definition of a system. The consumer is the center of the service, and thus each instance of the service is unique based on the individual involved. Service operations are simply the application of operations management to an intangible good (i.e. (adsbygoogle = window.adsbygoogle || []).push({}); Operations management is the management of processes that transform inputs into goods and services that add value for the customer. 3M manufactures a top-quality adhesive tape called “Magic Tape”. An opposite example of the strategic implications of the input/output transformation process is 3M’s decision in the 1980s to stop manufacturing VHS tape for video players and recorders. The operations strategy should support the overall organization strategy. For example, if an organization makes furniture, some of the operations management decisions involve the following: If the organization makes good operations decisions, it will be able to produce affordable, functional, and attractive furniture that customers will purchase at a price that will earn profits for the company. An adhesive that is sticky enough to hold items in place (but not too sticky that it can not be removed and readjusted if necessary! There are … Controlling the transformation process makes it difficult for competitors to manufacture products of the same quality as the original producer. Scribd will begin operating the SlideShare business on December 1, 2020 Learn more. For example, United Parcel Service (UPS), an international package delivery service, formed a partnership with its customer, Toshiba computers. Without a tangible good to ship, handle and produce, operational managers are instead focused on the execution of an activity to fill a consumer need. One useful perspective in differentiating services from other goods is the ‘5 I’s of services’ perspective. Operations decisions include decisions that are strategic in nature, meaning that they have long-term consequences and often involve a great deal of expense and resource commitments. The pro forma uses information from past and current financial statements in an effort to predict future events such as sales, and capital investments. See our Privacy Policy and User Agreement for details. Countless operating decisions must be made that have both long- and short-term impacts on the organization’s ability to produce goods and services that provide added value to customers. You can change your ad preferences anytime. Take a doctor’s office. Operations Management and the Transformation Process. This is a good example of service inconsistency. Most Toshiba customers think that Toshiba is doing a great job of repairing their computers, when in fact Toshiba never touches the computers! As services behave somewhat differently than tangible products, operations managers must take into account different considerations when optimizing their operational strategy. Clipping is a handy way to collect important slides you want to go back to later. Since 3M had no proprietary control over the transformation process for VHS tape that would allow the company to protect its profit margins for this product, it dropped VHS tape from its offerings. 1. The history of operations management is portrayed. If you continue browsing the site, you agree to the use of cookies on this website. It really depends on how much output she expects she can accomplish, and how much input demand will provide. Note: For multifactor and partial measures it is not necessary to use total output as numerator. It is an illustration of how the service-product continuum is more of a spectrum than a black and white rule. Mac vs. pc: the stereotypes may be true cnn.com, Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), Trillion Dollar Coach Book (Bill Campbell). Operations is one of the three strategic functions of any organization. In the VHS tape market 3M had no proprietary manufacturing advantage, as there were many Asian competitors that could produce high-quality VHS tape at lower cost. The 3M Company is a good example of the strategic importance of transforming inputs into outputs that provide competitive advantage in the marketplace. the type of technologies that the organization will use. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Figure 1 summarizes the transformation process. Operations management transforms inputs (labor, capital) into outputs (goods and services) that provide added value to customers. Global Text Project, Business Fundamentals. To understand how service operations function, let’s first take a look at what is considered a service. Improving overall quality through measuring consumer satisfaction, planning facilities for optimal use of space, and effective scheduling are a few examples of considerations service operators consider. Services operations often encounter different opportunities and challenges than tangible goods, and thus require unique operational considerations. The result of this operations innovation is better service to Toshiba customers and a strong and profitable strategic partnership between UPS and its customer, Toshiba. Just as a product manufacturing facility will know when a product will be where, so too do service operators need to know when a given service should start and what duration of time is required to complete it. Identify the key differences between services and other types of goods, and recognize the operational implications of these differences. how much long-term capacity the organization will provide to meet customer demand. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Figure 1 summarizes the transformation process. Service operations are the operational strategies and tactics which go into delivering an intangible good to prospective consumers. If you wish to opt out, please close your SlideShare account. Involvement – Consumers are often directly involved in the service delivery. Each execution is measured relative to the specific instance and that specific consumer, making tools like NPS surveys and other measures of individual satisfaction highly useful in optimizing. Maximizing output through planning properly can minimize opportunity costs and maximize revenue, and plays an integral role in operational management of services. ). location and layout of the furniture factory. Operations management transforms inputs (labor, capital, equipment, land, buildings, materials and information) into outputs (goods and services) that provide added value to customers. Operations is one of the three strategic functions of any organization. APIdays Paris 2019 - Innovation @ scale, APIs as Digital Factories' New Machi... No public clipboards found for this slide, Lecture note no. purchase cutting tools and other fabrication equipment. This management of an instance is rather different than the management of a product. July 3, 2012. Strategic capacity planning for products and services. UPS hired, trained, and certified its own employees to repair Toshiba laptop computers. Magic Tape is used for everyday taping applications, but it offers attractive features that most other tapes do not, including: For several decades, 3M has enjoyed a substantial profit margin on its Magic Tape product because 3M engineers make the manufacturing equipment and design the manufacturing processes that produce Magic Tape. Analyze the importance of operations management in protecting an organization’s competitive advantage. As of this date, Scribd will manage your SlideShare account and any content you may have on SlideShare, and Scribd's General Terms of Use and Privacy Policy will apply. Strategic operations decisions include the following: Tactical operations decisions have short to medium term impact on the organization, often involve less commitment of resources, and can be changed more easily than strategic decisions. Operations Management: Blueprint for a commercial operations management solution. Operations Management Course description: This operations management course is intended to be a survey of the operating practices and procedures found in both manufacturing and service delivery firms.We will focus our attention on those business processes and procedures used to transform inputs into finished goods and services.

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