Introduction to Operation Management

Only available on StudyMode
  • Download(s) : 13
  • Published : September 26, 2011
Open Document
Text Preview
Introduction

Organisational aims
Production system as a process

Operations Management

Introduction

Organisational aims
Production system as a process
Examples

Operations Management

v1.0

Needs

Logistics & Distribution

Information Systems

ty ty Safe

gn reen gnE gniireeniignE

2

Introduction

Organisational aims
Production outcomes
What is a Product?
• Need-satisfying offering of an organization
– Example • Procter & Gamble does not sell laundry detergent • P&G sells the benefit of clean clothes

• Customers buy satisfaction, not parts • Charles Revson says “Revlon sells hope, not cosmetics • Can be a good or a service

Introduction

Organisational aims
Production outcomes

Goods
• Can be resold • Can be inventoried • Some aspects of quality measurable • Selling is distinct from production • Product is transportable • Site important for cost • Revenue generated from tangible product • Often easy to automate

Operations Management

v1.0

Introduction

Organisational aims
Production outcomes

Services
category that accounts for over 70% jobs and value added in economy • “Services are anything sold in trade that cannot be dropped on your foot.” The Economist

• “There are no such things as service industries. There are only industries whose service components are greater or lesser than those of other industries. . .” Theodore Levitt, 1972

We’re all in services now, more or less . . .

3

I Introduction

Organisational aims Organisational modelling
Systems approach Strategic positioning

The operations manager role Course structure

Introduction

Organisational modelling

Operations Management

v1.0

Introduction

Organisational modelling
Systems approach

Concepts
• Structure
– made up of subsystems – arrangement of the resources – physically outlined by the boundary –… – subsystems relationships determine system behaviour – system/subsystems have physical & informational transactions – control procedures provide direction – convergence over objectives should be pursued – manage noise & bias provoked by observer –… • Dynamics

Operations Management

4

Introduction

Organisational modelling
Systems approach

Concepts
A systemic approach implies…
• a set of components interacting with one another • components passing material, information or energy • components put together to achieve a purpose • an holistic view

– trying to see the situation as a whole – component positioning or the interaction in the context of associated components – changes impact the overall operation of the whole – requires experience to decide which interactions need to be considered

A systemic approach recognises…
• the • problems can
– –

interactions between the components are just as important as the components themselves arise with the components themselves with the interactions between components

Operations Management

Introduction

Organisational modelling
Systems approach

Synergy

1+1 = 3!

• Performance that results when individuals and departments coordinate their actions • Performance gains of the whole surpass the sum of the performance of the individual components

Introduction

Organisational modelling Systems approach
Contingency concept

SOCIETY
Human Engineering Marketing Resources

External Environment

Suppliers

Operations transformation system

CUSTOMERS

Accounting

Finance

MIS

COMPETITORS

GOVERNMENT

5

Introduction

Organisational modelling Systems approach
Contingency view
• • Sometimes called situational approach There is no one universally applicable set of management principles (rules) by which to manage organizations – there is no one best design of organisation



Organizations are individually different, face different situations (contingency variables), and require different ways of managing – differentiating between alternative forms of...
tracking img