Operations Management

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2/24/2012

Operations Management
Focus Area : Part I: Week 2 BASICS
LECTURE CONTENTS
Careers in OM, Integration with Business, Generalized OM, OM versus Project Management, OM versus Project Managers, OM Decisions, 5 P’s, POM Policy, Guides to create POM Policy

Instructor’s Name

Muhammad Salman Bilal
PE, PMP, PMI-RMP Reference Production and Operation Management Pearson Education

Sixth Edition

Authors: Alan Muhlemann, John Oakland, Keith Lockyer

Overview Part I: BASICS

Week 1 Introduction to Operations Management (OM), OM History

Week 2 OM Careers, OM integrated with Business, OM versus Project Management, Strategic OM decisions, 5 P’s, Planning the Operations Week 3 OM based organizational structuring (Assignment 1)

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Careers in Operations Management
Successful operations managers must:
• Be able to motivate and lead people by letting them know OM is integrally related to all the business functions. • Understand how technology can make a manufacturer more productive and efficient to sustain & grow business • Understand the relationship between the customer, the marketing of a product, and the production of a product to become productive enterprise • Appreciate the control processes that lower production costs and improve product quality because large percentage of revenue of most firms is spent in OM

NOTE: 40% of the available jobs are in OM Ops managers MUST appreciate the manufacturing process Mass production: a process that lowers the cost required to produce a large number of identical or similar products over a long period of time Analytic process: a process that breaks raw materials into different component parts Synthetic process: a process that combines raw materials or components to create a finished product

The Conversion Process
The purpose of the resources conversion process is to provide utility to customers • Utility: the ability of a good or service to satisfy a human need • Four types of utility: form, place, time, and possession …… Then What is Form Utility? The utility created by the converting raw materials, people, finances, and information into finished products (i.e., production or manufacturing)

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The Nature of Conversion
Focus • The focus of the conversion process is the resource or resources that comprise the major or most important input Magnitude of change • The degree to which the resources are physically changed Number of production processes • The number of production processes employed varies from one or a few for small firms to many for larger firms

Functional Business Areas

Business Triggered Operations Managed PRODUCT/ SERVICE

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Generalized OM in an Organization
Most businesses are supported by the functions of operations, marketing, and finance & these major functional areas must interact to achieve the organization goals • Marketing is not fully able to meet customer needs if they do not understand what operations can produce • Finance cannot judge the need for capital investments if they do not understand operations concepts and needs • Accounting needs to consider inventory management, capacity information, and labor standards • Information Systems enables the information flow throughout the organization • Human resources must understand job requirements and worker skills

Integration with Business

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OM versus Project Management
Project Management deals with the management of a specific project, which has a commence date, a number of tasks and a completion date. A Project Manager would typically oversee the delivering of projects on time, assigning tasks to developers and designers and ensuring client satisfaction.

Operations Management refers to the ongoing management of daily works of a company, such as technical support, network management, etc. With Operations Management, there is no set end point. An Operations Manager would typically be involved in all...
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