Operations Management Case

OPERATIONS MANAGEMENT

1 PRODUCTION AND OPERATIONS MANAGEMENT: AN OVERVIEW

Objectives

1. Discuss the scope and significance of operations management functions

2. Explain the impact of operations management on employment opportunity in the expanding service sectors

3. Suggest a paradigm shift to focus on operations management as a key linkage to excellence in customer service

4. Enhance operations management capabilities by building long-term relationships with the suppliers

5. Explain the role of manufacturing and service operations in combating pollution.

6. Discuss the importance of the profession of operation management as it has to provide the cutting edge competitive strategies.

Introductions

Processes

- Create/support manufacturing or services operations

- Customer services

o Delightful customer

o Dissatisfied customer

- MOST IMPORTANT IS TO deliver company goods and services in the most effective way for survival

Productivity

- Smarter designs

- Efficient processes

o Lower costs

o Raise profits

- Technological changes

- Capital investment

- Labour quality

Scope and Significance

Originally known as production.

The change of movement from manufacturing sectors to services sectors

Systemic View of Operations Management

Previously, manufacturing facilities are far removed from customers

- Non-customer centric orientation of production personnel

o Adverse impact on customer satisfaction

- Operation managers re-orient their thinking on the true meaning of customizing their work processes.

Now, new focus of having effective and efficient conversion/transformation processes to produce customer-satisfying output.

- Adds value to raw materials by changing shape, size or weight

- Changes in form, location, and time.

Factors of Production

Theory of economics, 4 factors of production

1) Land

2) Labour

3) Capital

4) Enterprise/entrepreneurships

The movement to have produce customer satisfaction relies on effective and efficient utilization of resources listed below

1) Men/labour

2) Money/Capital

3) Machines

4) Materials

5) Methods

6) Management know-how

7) Measurements

8) Information for communication

9) Motive Power (Energy)

?

PRODUCTIVE USE OF RESOURCES

Input = Output + Waste

Output/Input = Productivity

Waste/Input = Wastege

100% = Productivity + Wastage

Bottom line, is to enhance utilization of resources/output.

INCREASING PRODUCTIVITY

Productivity = Output / Input

- Increasing output while keeping input constant

- Decreasing input while keeping output constant

? Save unnecessary costs

- Increasing output in greater proportion than the increase in input

? Production by bulk saving extra costs

DECREASING WASTAGE

Enhancing productivity by reducing wastes.

- Minimize the generation of wastes

- Tackling the problem at the source of the generation of pollution.

ENVIRONMENTAL CONCERNS OF OPERATIONS

Operation management

- Main PIC for material progress in mankind

- Insatiable material welfare

o CAUSES environmental damages

? Solid waste

? Liquid waste