Introduction to Operations Management

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Introduction to Operations
Management

Contents:

1- What Is Operations Management (OM)?
2- OM Decisions.
3- Contributions of OM to the society.
4- The emergence of OM.
5- The Ever-Changing World of Operations Management.
6- Historical Development of OM.
7- The Main Challenges Face OM (+ in Sudan) – “ASSIGNMENT”

1-What is Operations Management?

1- Operations Management (OM) is the management of the direct recourses that are required to produce and deliver an organization's goods and services

2- OM is the business function responsible for Planning, Coordinating, and Controlling the resources needed to produce a company’s products and services. (this is an organizational perspective to define OM).

3- OM is the management of the conversion process that transforms inputs into outputs in the form of finished goods and services. (this is an operational perspective to define OM).

[pic]

Operations as a transformation process:

[pic]

Inputs of a Production System:

External;
- Legal, Economic, Social, Technological

Market;
- Competition, Customer Desires, Product Info.

Primary Resources;
- Materials, Personnel, Capital, Utilities

Outputs of a Production System

Direct;

- Products
- Services

Indirect;

- Waste
- Pollution
- Technological Advances

The Transformation Process within OM (technical core):

Operations as the technical core:

[pic]

Operations managers do more than efficiently convert inputs to outputs. They interact with marketing to receive estimates of customer demand and customer feedback on problems; with finance for capital investments, budgets, and stockholder requirements; with personnel to train, hire, and fire workers; and with purchasing to order needed material for production.

Input-transformation-output relationships for typical systems:

(Examples of transformation process p.8)

Transformation Processes:

Physical (manufacturing)
Locational (transport/storage)
Exchange (retail)
Storage (Warehousing)
Physiological(healthcare)
Psychological (entertainment)
Informational (communications)

The input-transformation-output process covers more than manufacturing processes. Operations can take many forms.

Types of Operations:

[pic]

2- OM decisions

Key Decisions of OM:

What
- What resources/what amounts
When
- Needed/scheduled/ordered
Where
- Work to be done
How
- Designed
Who
- To do the work

OM decisions:

Operations managers must make decisions on three levels;

–   Strategic
–   Tactical
–   Operating

Top-down Approach to OM Strategy:

Operations Strategy Decisions;

Strategic (long-range)
Needs of customers (capacity planning)

Tactical (medium-range)
Efficient scheduling of resources

Operational planning and control (short-range)
Immediate tasks and activities

| |Strategic |Tactical |Operating | |Characteristics |Longer term decisions |Medium term decisions |Shorter term decisions | | |Usually made at the senior |Made by middle and senior managers|Made at middle and lower management| | |management level | |levels | | |High capital investment | | | | |Broad in nature |Narrow in scope |These decisions concern the | | |...
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