Operations Management What types of decisions are involved in managing operations? Generally there are two types of decisions that operations manager make:Strategic Decisions Tactical Decisions → Less structured, long term orientation → More Structured, short term orientations → Apply over the entire organization → Focus on departments, routine, repetitive Decisions may be divided in to five categories (5 parts of book) Strategic Choices: - Affect the company’s future direction. OM helps determine the company’s global strategies and competitive priorities. (Operations Strategy) Process: - fundamentals of all activities that product goods or services. Decisions about the types of work to be done, methods of improving existing process (Process Management), how to manage processes for one-time projects (Managing Project Process) Quality: - establish quality objectives, ways to improve the quality of the firm’s products & services (TQM), use of inspection and statistical methods to monitor the quality produced. Capacity, Location and Layout: - this category often required long-term commitments; OM helps to determine the system’s capacity (Capacity), the location of new facilities (Location), organization of departments and a facility’s physical layout (Layout) Operating Decisions:- deals with operating the facility after it has been built, OM helps to coordinate the various parts of internal and external supply chain (Supply Chain Management), forecast demand (Forecasting), mange inventory (Inventory Management), control output and often staffing levels over time (Aggregate Planning, Resource Planning) What types of decisions are involved in managing operations? Generally there are two types of decisions that operations manager make:Strategic Decisions Tactical Decisions → Less structured, long term orientation → More Structured, short term orientations → Apply over the entire organization → Focus on departments, routine, repetitive Decisions may be divided in to five categories (5 parts of book) Strategic Choices: - Affect the company’s future direction. OM helps determine the company’s global strategies and competitive priorities. (Operations Strategy) Process: - fundamentals of all activities that product goods or services. Decisions about the types of work to be done, methods of improving existing process (Process Management), how to manage processes for one-time projects (Managing Project Process) Quality: - establish quality objectives, ways to improve the quality of the firm’s products & services (TQM), use of inspection and statistical methods to monitor the quality produced. Capacity, Location and Layout: - this category often required long-term commitments; OM helps to determine the system’s capacity (Capacity), the location of new facilities (Location), organization of departments and a facility’s physical layout (Layout) Operating Decisions:- deals with operating the facility after it has been built, OM helps to coordinate the various parts of internal and external supply chain (Supply Chain Management), forecast demand (Forecasting), mange inventory (Inventory Management), control output and often staffing levels over time (Aggregate Planning, Resource Planning) What types of decisions are involved in managing operations? Generally there are two types of decisions that operations manager make:Strategic Decisions Tactical Decisions → Less structured, long term orientation → More Structured, short term orientations → Apply over the entire organization → Focus on departments, routine, repetitive Decisions may be divided in to five categories (5 parts of book) Strategic Choices: - Affect the company’s future direction. OM helps determine the company’s global strategies and competitive priorities. (Operations Strategy) Process: - fundamentals of all activities that product goods or services. Decisions about the types of work to be done, methods of improving existing process (Process Management), how to manage processes for one-time projects (Managing Project Process) Quality: - establish quality objectives, ways to improve the quality of the firm’s products & services (TQM), use of inspection and statistical methods to monitor the quality produced. Capacity, Location and Layout: - this category often required long-term commitments; OM helps to determine the system’s capacity (Capacity), the location of new facilities (Location), organization of departments and a facility’s physical layout (Layout) Operating Decisions:- deals with operating the facility after it has been built, OM helps to coordinate the various parts of internal and external supply chain (Supply Chain Management), forecast demand (Forecasting), mange inventory (Inventory Management), control output and often staffing levels over time (Aggregate Planning, Resource Planning)
What types of decisions are involved in managing operations? Generally there are two types of decisions that operations manager make:Strategic Decisions Tactical Decisions → Less structured, long term orientation → More Structured, short term orientations
→ Apply over the entire organization → Focus on departments, routine, repetitive Decisions may be divided in to five categories (5 parts of book) Strategic Choices: - Affect the company’s future direction. OM helps determine the company’s global strategies and competitive priorities. (Operations Strategy) Process: - fundamentals of all activities that product goods or services. Decisions about the types of work to be done, methods of improving existing process (Process Management), how to manage processes for one-time projects (Managing Project Process) Quality: - establish quality objectives, ways to improve the quality of the firm’s products & services (TQM), use of inspection and statistical methods to monitor the quality produced. Capacity, Location and Layout: - this category often required long-term commitments; OM helps to determine the system’s capacity (Capacity), the location of new facilities (Location), organization of departments and a facility’s physical layout (Layout) Operating Decisions:- deals with operating the facility after it has been built, OM helps to coordinate the various parts of internal and external supply chain (Supply Chain Management), forecast demand (Forecasting), mange inventory (Inventory Management), control output and often staffing levels over time (Aggregate Planning, Resource Planning)
Differences between Manufacturing and Services 1. Physical Nature of the Product Manufactured goods are physical, durable products services are intangible, often being ideas, concepts or information 2. Inventories Output that can be stored, transported cannot be produced, cannot be stored, consumed same time 3. Customer Contact Customers have little or no contract with the production system service organizations the customers themselves are inputs Primary customers contact is left to distributors and retailers and active participation in the process 4. Response time Have days or weeks to meet customer demands services must be offered within minutes of customer arrival. 5. Location and size of an operation Manufacturing facilities often serve regional, national service cannot ship to distant locations, direct customer Or even international markets contact must locate relatively near their customers 6. Facilities Large facilities small facilities 7. Capital and labor intensive Manufacturers are capital intensive, heavy machinery required labor intensive, less equipment required 8. Quality Quality easily measured quality not easily measured 9. Reselling Similarities between manufacturing and services Differences between Manufacturing and Services 1. Physical Nature of the Product Manufactured goods are physical, durable products services are intangible, often being ideas, concepts or information 2. Inventories Output that can be stored, transported cannot be produced, cannot be stored, consumed same time 3. Customer Contact Customers have little or no contract with the production system service organizations the customers themselves are inputs Primary customers contact is left to distributors and retailers and active participation in the process 4. Response time Have days or weeks to meet customer demands services must be offered within minutes of customer arrival. 5. Location and size of an operation Manufacturing facilities often serve regional, national service cannot ship to distant locations, direct customer Or even international markets contact must locate relatively near their customers 6. Facilities Large facilities small facilities 7. Capital and labor intensive Manufacturers are capital intensive, heavy machinery required labor intensive, less equipment required 8. Quality Quality easily measured quality not easily measured 9. Reselling Similarities between manufacturing and services Differences between Manufacturing and Services 1. Physical Nature of the Product Manufactured goods are physical, durable products services are intangible, often being ideas, concepts or information 2. Inventories Output that can be stored, transported cannot be produced, cannot be stored, consumed same time
3. Customer Contact Customers have little or no contract with the production system service organizations the customers themselves are inputs Primary customers contact is left to distributors and retailers and active participation in the process 4. Response time Have days or weeks to meet customer demands services must be offered within minutes of customer arrival. 5. Location and size of an operation Manufacturing facilities often serve regional, national service cannot ship to distant locations, direct customer Or even international markets contact must locate relatively near their customers 6. Facilities Large facilities small facilities 7. Capital and labor intensive Manufacturers are capital intensive, heavy machinery required labor intensive, less equipment required 8. Quality Quality easily measured quality not easily measured 9. Reselling Similarities between manufacturing and services
