opsman

• Operations management


  The management of systems or processes that create goods and/or provide services
• Operations


  The part of an organization that is responsible for producing goods and/or services
• Goods


  • Physical items inclusive or raw materials, parts, sub-assemblies such as engine system used in cars and final products such as computers
• Services


  • Activities that provide a combination of time, location, form, and psychological values
• Three basic functional areas

  • Finance
  • Marketing
  • Operations
• Finance


  Responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations
• Marketing


  Responsible for assessing consumer wants and needs, and selling and promoting the organization's goods or services
• Operations


  Responsible for producing the goods or providing the services offered by the organization
• Transformation process


  The creation of goods or services involves transforming or converting inputs into outputs
• Value-added


  The difference between the cost of inputs and the value or price of outputs
• Manufacturing and service are often different in terms of what is done but quite similar of how it is done. Both involve design and operating decisions
• Manufacturers must decide what size of building is needed. Service organization (e.g., hospitals) must decide what size factory is needed. Both must make decisions on location, work schedules, capacity, and allocation of scarce resources
• Scope of operations management

  • Product and service design
  • Process selection
  • Selection and management of technology
  • Design of work systems
  • Location planning
  • Facilities planning
  • Quality improvement of the organization's products and services
• Operations function includes


  • Forecasting
  • Capacity Planning
  • Scheduling
  • Managing Inventories
  • Assuring Quality
  • Motivating and Training employees
  • Location Facilities
• Key decisions made by operations managers

  • What resources will be needed, and in what amounts
  • When will each resource be needed? When should the work be scheduled? When should materials and other supplies be ordered? When is corrective action needed
  • Where will work be done
  • How will the product or service be designed? How will the work be done? How will resources be allocated
  • Who will do the work
• Competitiveness


  The effectiveness of an organization in the marketplace relative to other organizations that offer similar products or services
• How marketing influences competitiveness

  • Identifying consumer wants and/or needs
  • Pricing
  • Advertising and promotion
• How operations influences competitiveness

  • Product and service design
  • Cost
  • Location
  • Quality
  • Quick response
  • Flexibility
  • Inventory management
  • Supply chain management
  • Service
  • Managers and workers
• Reasons why organizations fail

  • Putting too much emphasis on short-term financial performance at the expense of research and development
  • Failing to take advantage of strengths and opportunities, and/or failing to recognize competitive threats
  • Neglecting operations strategy
  • Placing too much emphasis on product and service design and not enough on process design and improvement
  • Neglecting investments in capital and human resources
  • Failing to establish good internal communications and cooperation among different functional areas
  • Failing to consider customer wants and needs
• Strategy


  Plans for achieving organizational goals
• Mission


  An organization's reason for its existence, expressed in its mission statement
• Goal


  Provide detail and describe the scope of the mission
• Tactics


  The methods and actions used to accomplish strategies, more specific than strategies
• Productivity is a measure of the effective use of resources, usually expressed as the ratio of output to input
• Forecast


  A statement about the future value of a variable of interest
• Two uses for forecasts

  • Plan the system
  • Plan the use of the system
• Uses of forecasts in business organizations

  • Accounting
  • Finance
  • Human resources
  • Marketing
  • MIS
  • Operations
  • Product and service design
• Elements of a good forecast

  • The forecast should be timely
  • The forecast should be accurate
  • The forecast should be reliable
  • The forecast should be expressed in meaningful units
  • The forecast should be in writing
  • The forecasting technique should be simple to understand and use
  • The forecast should be cost-effective
• Steps in the forecasting process

  • Determine the purpose of the forecast
  • Establish a time horizon
  • Select a forecasting technique
  • Obtain, clean, and analyze appropriate data
  • Make the forecast
  • Monitor the forecast
• Forecasts based on judgment and opinion

  • Executive opinions
  • Salesforce opinions
  • Consumer surveys
• Time series


  A time-ordered sequence of observations taken at regular intervals (e.g., hourly, daily, weekly, monthly, quarterly, and annually)
• Components of time series

  • Trend
  • Seasonality
  • Cycles
  • Irregular variations
• Operations management


  The management of systems or processes that create goods and/or provide services
• Operations


  The part of an organization that is responsible for producing goods and/or services
• Goods


  • Physical items inclusive or raw materials, parts, sub-assemblies such as engine system used in cars and final products such as computers
• Services


  • Activities that provide a combination of time, location, form, and psychological values
• Three basic functional areas

  • Finance
  • Marketing
  • Operations
• Finance


  Responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations
• Marketing


  Responsible for assessing consumer wants and needs, and selling and promoting the organization's goods or services
• Operations


  Responsible for producing the goods or providing the services offered by the organization