Operation Mangment

DSME 2030 Operations Management

Introduction to Operations Management Sean Zhou CUHK Business School CUHK
DSME 2030
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Why is

so Successful?

 Founded in 1971, based in Memphis, Tennessee, with $44.3 billion annual revenue in 2013  Serve 220 countries and regions, 300 thousand employees  Deliver 3.4 million packages daily with 654 planes and 43,000 trucks  Multiple divisions/operating units: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services  Fast and reliable  On-time deliveries  Relatively low cost  Information technology http://mediacenter.fedex.designcdt.com/node/358 DSME 2030
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Zara
 A chain of fashion stores owned by Inditex, Spain’s largest apparel manufacturer and retailer  2004, Inditex reported sales of 13 billion euros from more than 2,200 outlets in 56 countries  Take a design from drawing board to store shelf in just two weeks, compared with the industry average of more than 6 months  Responsiveness of its supply chain gives Zara a major competitive advantage  Combination of flexible and quick sources in Europe and low cost sources in Asia  Produce batches of clothing in small quantities

DSME 2030

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Definition Of Operations Management
 Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary goods and services  Depending on the context, the term of operations management is interchangeable with following terms:  Operations  Operations and supply management (OSM)  Operations and supply chain management (OSCM)

DSME 2030

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Operations As An Essential Functional Field
 Essential functional field in an organization:  Marketing – generating demand, selling, promotion  Operations – creating and delivering the goods/services  Finance/Accounting – tracking how well the organization is doing, pays bills, collects the money An Organization

Finance /Accounting
DSME 2030

Operations