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Learning Objectives
Describe and differentiate Operation Management, Strategic Management and Strategic Operations Management. Understand the concept of Strategic Operations Management the major responsibilities that face operations managers
Define
Operation Management
is the set of activities that creates value in the form of goods and services by transforming inputs into outputs The management of systems or processes that create goods and/or provide services Focus Planning & Decision-making
Operation Management
Is concerned with those activities that enable an organization (and not one part of it only) to transform a range of basic inputs into outputs for the end customer. Is very wide in scope of responsibilities and will draw upon a range of functions within the organization, not be limited to a specific department. Is concerned with uniting these other areas and functions into a central core of capabilities for the organization.
Operation Management
Is no longer limited to a narrow focus on organization-specific activity. In the modern era of operations management, organizations no longer see themselves as a stand-alone element in the overall process but will, instead, see themselves as part of a wider, extended enterprise.
Operation Management
The activities, decisions and responsibilities of managing the production and delivery of products and services. A transformation process, operations turns individual inputs into a valuable output. The operations function is the part of the organization that is responsible for this activity
Strategic Management
Art & science of formulating, implementing, and evaluating, cross-functional decisions that enable an organization to achieve its objectives
Strategic Management
Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. In essence, the strategic plan is a company s game plan
Strategy Formulation
Vision & Mission External Opportunities & Threats Internal Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection
Forecasting Capacity planning Scheduling Managing inventories Assuring quality Motivating employees Deciding where to locate facilities Supply chain management And more . . .
Operation Management
Operations managers
The staff of the organization who have particular responsibility for managing some or all of the resources which comprise the operation s function Responsible for overseeing the overall activities of the function of the organization which are:
Primary Function Support Function
Technical Function
Product/Service Development Function
Financial Provision of analysis for relevant data performance and decision Operations a Functions making Communicate Communicating Human the capabilities Market Resource Needs and constraints Requirements Communicating of operations Recruitment, Information Human process Systems for development System Needs Resource design, and training Function planning, and control and improvement Core Functions
Marketing Function
Support Functions
Product/Service Development
Operations
Maintain hardware, software and content Implement new links and services
Make burgers, pizza, etc. Serve customers Clear away Maintain equipment
Refers to the management of systems or processes of formulating, implementing, and evaluating organizations that create goods and/or services which aims to achieve competitive advantage with a specific purpose.
Historical Events
Era Events / Concepts Steam Engines Industrial Revolution Division of Labor Interchangeable parts Principles of Scientific Management Scientific Management Time and motion studies Activity Scheduling chart Moving Assembly Line Dates 1769 1776 1790 1911 1911 1912 1913 Originated by: James Watt Adam Smith Eli Whitney Frederick W. Taylor Frank and Lilian Gilbreth Henry Gantt Henry Ford
Historical Events
Era Events / Concepts Hawthorne Studies Dates 1930 1940 s Human Relations Motivation Theories 1950 s 1960 s Linear Programming Digital Computer Operations Research Simulation, waiting line theory, decision theory, PERT/CPM MRP, EDI, EFT, CIM 1947 1951 1950 s Frederick Herzberg Douglas McGregor George Dantzig Remington Rand Operations Research Group Joseph Orlicky, IBM and others Originated by: Elton Mayo Abraham Maslow
1960 s 1970 s
Historical Events
Era Events / Concepts JIT (Just-in-time) TQM (Total Quality Mgt) Quality Revolutions Strategy and Operations Business Process Reengineering Six Sigma Dates 1970 s 1980 s 1980 s 1990 s 1990 s Originated by: Taiichi Ohno (Toyota) W. Edwards Deming, Joseph Juran Wickham Skinner, Robert Hayes Michael Hammer, James Champy GE, Motorola
Historical Events
Era Internet Revolution Events / Concepts Internet, WWW, ERP, Supply Chain Management E-Commerce WTO, European Union, and other trade agreements, global supply chains, outsourcing, BPO, Service Science Dates 1990 s Originated by: ARPANET, Tim BernersLee SAP, i2 Technologies, ORACLE Amazon, Yahoo, eBay, Google, and others Numerous Countries ad Companies
Globalization
Eli Whitney
Born 1765; died 1825 In 1798, received government contract to make 10,000 muskets Showed that machine tools could make standardized parts to exact specifications
Musket parts could be used in any musket
Frederick W. Taylor
Born 1856; died 1915 Known as father of scientific management In 1881, as chief engineer for Midvale Steel, studied how tasks were done
Began first motion and time studies and Industrial management
Taylor s Principles
Management Should Take More Responsibility for:
Matching employees to right job Providing the proper training Providing proper work methods and tools Establishing legitimate incentives for work to be accomplished
Henry Ford
Born 1863; died 1947 In 1903, created Ford Motor Company In 1913, first used moving assembly line to make Model T
Unfinished product moved by conveyor past work station
W. Edwards Deming
Born 1900; died 1993 Engineer and physicist Credited with teaching Japan quality control methods in post-WW2 Used statistics to analyze process His methods involve workers in decisions
Contributions From
Human factors Industrial engineering Management science Biological science Physical sciences Information technology
To
Global focus Just-in-time Supply chain partnering Rapid product development, alliances Mass customization Empowered employees, teams
Chapter 1
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