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Lecture Fundamentals of operations management (4/e): Chapter 1 - Davis, Aquilano, Chase

Chapter 1 - Introduction to operations management. After studying this chapter you will be able to: Introduce and define operations management (OM) in terms of its contribution and the activities it involves, describe how operations contributes to the overall betterment of society, present operations as a function that addresses issues in both manufacturing and services,. | F O U R T H E D I T I O N Introduction to Operations Management © The McGraw-Hill Companies, Inc., 2003 chapter 1 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook Chapter Objectives Introduce and define operations management (OM) in terms of its contribution and the activities it involves. Describe how operations contributes to the overall betterment of society. Present operations as a function that addresses issues in both manufacturing and services. Show how operations management is gaining more recognition both internally and externally to an organization. © The McGraw-Hill Companies, Inc., 2003 1– Chapter Objectives (cont’d) Demonstrate how the operations management function interacts with the other functional areas within an organization. Present a brief history of operations management as a field and its evolution to its current role in an organization. © The McGraw-Hill Companies, Inc., 2003 1– Managerial Issues Shift in balance of power to consumers Globalization of business and markets E-commerce Achieving higher levels of productivity Creating higher quality products Delivering better customer service Achieving shorter delivery times Reducing labor and material costs © The McGraw-Hill Companies, Inc., 2003 1– What Is Operations Management? Operations Management Management of the conversion process which transforms inputs such as raw material and labor into outputs in the form of finished goods and services. Transformation Process (components) Inputs (customers and/or materials) Outputs (goods and services) © The McGraw-Hill Companies, Inc., 2003 1– Role of OM within an Organization Exhibit 1.1 © The McGraw-Hill Companies, Inc., 2003 1– 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 © The McGraw-Hill . | F O U R T H E D I T I O N Introduction to Operations Management © The McGraw-Hill Companies, Inc., 2003 chapter 1 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook Chapter Objectives Introduce and define operations management (OM) in terms of its contribution and the activities it involves. Describe how operations contributes to the overall betterment of society. Present operations as a function that addresses issues in both manufacturing and services. Show how operations management is gaining more recognition both internally and externally to an organization. © The McGraw-Hill Companies, Inc., 2003 1– Chapter Objectives (cont’d) Demonstrate how the operations management function interacts with the other functional areas within an organization. Present a brief history of operations management as a field and its evolution to its current role in an organization. © The McGraw-Hill Companies, Inc., 2003 1– Managerial Issues Shift in balance of power to consumers .