Chapter 14 - Operations management: Managing vital operations and processes. The main goals of this chapter are to: Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers; describe what customers want, and explain why it is so important for managers to be responsive to their needs; explain why achieving superior efficiency is so important. | Operations Management: Managing Vital Operations and Processes Chapter Fourteen Learning Objectives LO14-1 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers. LO14-2 Describe what customers want, and explain why it is so important for managers to be responsive to their needs. Learning Objectives (cont.) LO14-3 Explain why achieving superior quality in an organization’s operations and processes is so important. LO14-4 Explain why achieving superior efficiency is so important. Operations Management Operations Management The management of any aspect of the production system that transforms inputs into finished goods and services Operations Management Production System The system that an organization uses to acquire inputs, convert inputs into outputs, and dispose of the outputs Operations Management Operations Manager Manager who is responsible for managing an organization’s production system and for determining where operating improvements might be made Operations Management Quality goods and services that are reliable, dependable, or psychologically satisfying Efficiency amount of inputs required to produce a given output Responsiveness to customers action taken to meet the demands and needs of customers The Purpose of Operations Management Figure Customer Relationship Management Customer relationship management (CRM) technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time Impact of Increased Quality on Organizational Performance Figure Facilities Layout, Flexible Manufacturing, and Efficiency Flexible Manufacturing Operations management techniques that attempt to reduce the setup costs associated with a production system. 11 16 Figure Three Facilities Layouts Changing a Facilities Layout Figure Just-in-Time Inventory and Efficiency Inventory the stock of raw materials, inputs, and component parts that an organization has on hand at a particular time Process Reengineering and Efficiency Process Reengineering The fundamental rethinking and radical redesign of the business process to achieve dramatic improvement in critical measures of performance such as cost, quality, service, and speed 15 | Operations Management: Managing Vital Operations and Processes Chapter Fourteen Learning Objectives LO14-1 Explain the role of operations management in achieving superior quality, efficiency, and responsiveness to customers. LO14-2 Describe what customers want, and explain why it is so important for managers to be responsive to their needs. Learning Objectives (cont.) LO14-3 Explain why achieving superior quality in an organization’s operations and processes is so important. LO14-4 Explain why achieving superior efficiency is so important. Operations Management Operations Management The management of any aspect of the production system that transforms inputs into finished goods and services Operations Management Production System The system that an organization uses to acquire inputs, convert inputs into outputs, and dispose of the outputs Operations Management Operations Manager Manager who is responsible for managing an organization’s production system and for determining where .
