Operation Management

Operation Management

1. Systematic

   • Design, direction, control
     • Transforms inputs into services and products for internal and external clients
       • Process of a view firm
         • Provides a relevant picture of the way the firm works
           • How processes work
             • Inputs
               • human resources (workers and management), capital (equipment and facilities), purchased material and services, land, energy
             • Outputs
               • services or tangible products
             • external costumers
               • end users or intermediaries
             • Internal costumers
               • employees whose process inputs are the outputs of earlier processes
             • External suppliers
               • Other businesses who provide resources, services, products, materials
             • internal suppliers
               • supply important information or material
           • Service and manufacturing processes
             • 2 key differences: the nature od their outputs and the degree of the costumer contact
               • services
                 • Hgher degree of costumer contact
               • manufacturing
                 • Convert materials into goods
                   • Transformation processes: physical properties, shape, size, surface finish, joining parts and materials
       • Supply chain view
         • Forces the link between processes and performance
           • 2 main types
             • Core processes
               • Set of activities that delivers value to external costumers.
                 • Supplier relationship process. new service/ product development process, costumer relationship process, order fulfillment process
             • Suppor processes
               • Provides vital resources and inputs to the core processes
                 • Budgeting, recruiting, scheduling
       • Operation Strategy
         • Specifies the means by which operations implements corsporate strategy and helps tu build a customer driven firm
           • Begins with corporate strategy and leads to market analysis which categorize the firms costumers, identifies their needs and assesess competitions strenghts
       • Corporate strategy
         • Environmental scanning
           • managers monitors trends in the environment for potential opportunities or threats
         • Developing core competences
           • Workforce, facilities, market and financial know how, systems and technology
         • Developing core processes
           • customer relationship, new service/product development.order fulfillment, supplier relationship
         • Global strategies
           • Strategic alliance, collaborative effort
       • Market analysis
         • Divides the firms costumes into market segment and identify needs of eacha segment
       • Competitive priorities and capabilities
         • Competitive priorities
           • Critical dimensions that a process or supply chain must posses to satisfy its internal or external customers both now and in the future
         • Competitive capabilities
           • cost, quality, time and flexibility dimensions
         • Order winner
           • criterion that customers use to differentiate the services of products of one firm from those of another
         • Qualifiers
           • Miniamal level requiered from a set of criteria for a firm to do business ina particular market segment
       • Operation strategy as a pattern of decisions
         • Developing capapbilities and closing gaps is the thrust of operation strategy
           • low-cost operations, consistent quality, delivery speed, volume flexibility
       • Trends in operation Management
         • Productivity imporvement
           • Basic measure of performance for economies, industires, firms and processes
         • Maesuring productivity
           • Productivity=output/ inputs
         • Comaparative cost advantages
           • Disadvantages of globalization
             • Technology, border barriers, nationalization, additional training time

2. Process is a group of activities that take one or more inputs

3. Functional areas of a business

   • Finance, marketing, operations
     • Provide direction of a business as a whole

4. Operation

   • Group of resources
     • Part of one or mpore processes
       • Processes linked together to forma a supply chain
         • Supply chain management is the synchronization of a firms processes with those of its suppliers and customers