OPERATIONS MANAGEMENT

• PRODUCTION

  - the creation of goods and services
• OPERATIONS MANAGEMENT

  - set of activities that creates value in the form of goods and services by transforming inputs into outputs
• ORGANIZING TO PRODUCE GOODS AND SERVICES 

  Essential & organizational functions: 

  • Marketing - generates demand (gets customers)

  • Operations - creates the product (creates product or service)

  • Finance/ accounting- tracks organizational performance, pay bills, collects money (obtain funds, tracks money)
• WHAT OPERATIONS MANAGERS DO? 

  PLAN

  ORGANIZE

  STAFF

  LEAD

  CONTROL
• PLAN - develop operational strategies and plans aligned with organizational goals and objectives.

  
  

  ORGANIZE - design and implement efficient organizational structures and workflows to optimize resource utilization.

  
  

  STAFF - recruit, train, and develop a skilled and motivated workforce to meet operational needs.

  
  

  LEAD - provide direction, motivation, and support to employees to ensure effective execution of operational tasks.

  
  

  CONTROL - monitor performance, identify deviations from plans and implement corrective actions to maintain quality standards and efficiency.
• COST FOCUS

  • Early Concepts 1776-1880• Labor specialization (Smith, Babbage)• Standardized Parts (Whitney)• Scientific Management Era 1880-1910• Gantt Charts (Gantt)• Motion & Time Studies (Gilbreth)• Mass Production Era 1910-1980• Moving Assembly Line (Ford/Sorensen)• Statistical Sampling (Shewhart)

   

  QUALITY FOCUS

  • Lean Production Era 1980-1995• Just-in-time• Computer aided design • Electronic data interchange • Totality quality management 

   

  CUSTOMIZATION FOCUS

  • Mass Customization Era 1995-2005• Globalization• Internet • Enterprise resource planning • Learning organization
• Eli Whitney - Showed that machine tools could make standardized parts to exact specifications
• Frank & Lillian Gilbreth - Further developed work measurement methods
• Henry Ford - created Ford Motor Company 
• W. Edwards Deming - Used statistics to analyze process