01- Introduction to Operations Management 1.pdf

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OPM 1 Term 2, B2015-17, Oct-Dec 2015 Introduction to Operations Management I

Welcome to

OPERATIONS MANAGEMENT

Credit:02


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Learning Objectives

Identify the elements of operations and supply chain

management.

Know the potential career opportunities in operatio

supply chain management.

Recognize the major concepts that define the operasupply chain management field.

Evaluate the efficiency of a firm.


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Strategy, Processes, and Analytics

Operations and supply chain management involves

Product design

Purchasing

Manufacturing

Service operations

Logistics

Distribution

Success depends upon

Strategy

Processes to deliver products and services

Analytics to support the decisions needed to manage the f


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What Is Operations and Supply Chain Manage

The design, operation, and improvement of the sys

create anddeliverythefirms primary products and

Operations and supply chain management (OSCM) i

A functional field of business

Concerned with the management of th

production/delivery

system


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Operations and Supply Chain Processes

Operations

Manufacturing and serviceprocesses used to

transform resources intoproducts

Supply Chain

Processes that moveinformation and material

to and from the firm

Internal

Customer

External

Customer



Process Steps for Mens Nylon Supplex P

he nylon Supplex producer the Polartec producer the parka manufacturer the ca



Operations and Supply Chain Processes



Process Activities

Planning

processesneeded tooperate anexisting supplychain

Sourcing

selection ofsuppliers thatwill deliver thegoods andservicesneeded to

create thefirms product

Making

producing themajor productor service

Delivering

logisticsprocesses suchas selectingcarriers,coordinatingthe movement

of goods andinformation,and collectingpayments fromcustomers



Where are the OM Jobs?


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Introduction to Operations Management I

Historical Development of Operations an

Supply Chain Management


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Current Issues in OSCM

Coordinatingrelationships

betweenmembers of SC

Optimizingglobal network

of suppliers,producers, and

distributors

Managingcustomer touch

points

Raisingawareness of

OSCM as acompetitive

weapon


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GOODS OR SERVICES?


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Characteristics of Goods

Tangible product

Consistent productdefinition

Production usually separatefrom consumption

Can be inventoried

Low customer interaction


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Characteristics of Services

Intangible product

Produced and conssame time

Often unique

High customer inte

Inconsistent produdefinition

Often knowledge-b

Frequently dispers


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Goods versus Services

Tangible

Less interaction with customers

Often homogeneous

Not perishablecan be inventoried

Pure Goods Core Goods

Intangible

Interaction with customer required

Inherently heterogeneous

Perishable/time dependent

Defined and evaluated as a package of feat

Core Services Pure Service

Goods Services

hi l b l d i f i


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China Global Leader is Manufacturing

The end of cheap China: What do soaring Chinese wages mean for global manufacturing? Mar 10th 2012 | HONG K

Source: http://www.economist.com/node/21549956

Light industry

Heavy manufacturing

& high technology

11th 5 yr plan


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Manufacturing: China vs. India

Made In India*: As China begins to lose its competitive advantage, manufacturing starts moving to India by Goutam

Source: http://businesstoday.intoday.in/story/india-benefits-china-begins-to-lose-manufacturing-edge/1/203040.htm

M k i I di


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Make in India

Made In India*: As China begins to lose its competitive advantage, manufacturing starts moving to India by GoutamSource: http://businesstoday.intoday.in/story/india-benefits-china-begins-to-lose-manufacturing-edge/1/203040.htm

Havells Bosch Micromax


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Efficiency, Effectiveness, and Value

Doing something at the lowest possible cost

Efficiency

Doing the right things to create the most value for your custome

Effectiveness

The attractiveness of a product relative to its cost

Value

Effi i Eff ti d V l


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Efficiency, Effectiveness, and Value

Getting passengers on a plane quickly can

greatly affect anairlines costs.

Southwest says that if its boarding times

increased by 10 minutes per flight, it would

need 40 more planes at a cost of $40 million

each to run the same number of flights it does

currently.

Reverse pyramid

Effi i d W ll St t


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Efficiency and Wall Street

Comparison of firms is important to investors

From an operations and supply chain perspective, the relat

providing a good or service is closely related to earnings gr

Management efficiency ratios

Labor productivity

Net income per employee

Revenue (or sales) per employee

Asset productivity

Effi i d W ll St t


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Effi i d W ll St t


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01- Introduction to Operations Management 1.pdf

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