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1、Chapter 1Introduction to the FieldOperations ManagementWhy Study Operations Management?Transformation Processes DefinedOperations as a ServiceThe Importance of Operations ManagementHistorical Development of OMCurrent Issues in OMOBJECTIVES What is Operations Management?Defined Operations management

2、(OM) is defined as the design, operation, and improvement of the systems that create and deliver the firms primary products and servicesWhy Study Operations Management? Business Education Systematic Approach to Org. ProcessesCareer OpportunitiesCross-Functional ApplicationsOperationsManagementWhat i

3、s a Transformation Process?Defined A transformation process is defined as a user of resources to transform inputs into some desired outputsTransformationsPhysical-manufacturingLocational-transportationExchange-retailingStorage-warehousingPhysiological-health careInformational-telecommunicationsWhat

4、is a Service and What is a Good?“If you drop it on your foot, it wont hurt you.” (Good or service?)“Services never include goods and goods never include services.” (True or false?)OM in the Organization ChartOperationsPlant ManagerOperationsManagerDirectorManufacturing, Production control, Quality a

5、ssurance, Engineering, Purchasing, Maintenance, etcFinanceMarketingCore services are basic things that customers want from products they purchaseCore ServicesDefinedCore Services Performance ObjectivesOperationsManagement Flexibility Quality Speed Price (or cost Reduction)Value-added services differ

6、entiate the organization from competitors and build relationships that bind customers to the firm in a positive wayValue-Added ServicesDefinedValue-Added Service CategoriesOperationsManagement Information Problem Solving Sales Support Field SupportThe Importance of Operations ManagementSynergies mus

7、t exist with other functional areas of the organizationOperations account for 60-80% of the direct expenses that burden a firms profit.Historical Development of OMJIT and TQCManufacturing Strategy ParadigmService Quality and ProductivityTotal Quality Management and Quality CertificationHistorical De

8、velopment of OM (contd)Business Process ReengineeringSupply Chain ManagementElectronic CommerceCurrent Issues in OMCoordinate the relationships between mutually supportive but separate organizations.Optimizing global supplier, production, and distribution networks.Increased co-production of goods and servicesCurrent Issues in OM (contd)Managing the custome

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