Operations week 1

• Operations Management


  theplanningandorganizingof theproductionofmanufactured goodsanddelivery of services
• competitive advantage


  the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them
• performance objectives


  quality, speed, dependability, flexibility, sustainability, cost
• cost


  •The ability to provide a product or service at a price the customer is willing to pay
• quality


  •The ability to provide products or services that meet customers’ expectations
• flexibility


  •The ability to change a product or service to meet customer’s needs
• dependability


  •The ability of an organization to consistently meet its promises to the customer
• speed


  •The ability to provide products or services with as short as possible time delay between customer order and delivery
• sustainability


  contributing to a sustainable futurefor environment, people and business
• cost to customers


  cost = price
• cost to companies


  1, profit

  2, cost = all costs to get the product to the customer
• if company lowers costs they can

  1, lower prices to get a competitive advantage.

  2, increase profits to invest or to make shareholders happy

  3, or both of the above
• role of operations in companies

  the function in organizations that must provide the physical products and the services that the company can market profitably.
• NPI


  New Product Introduction
• errors and conflict in NPI

  •Misunderstanding real customer requirements

  •Impossible solution is demanded

  •Solution needs time to develop capabilities

  •Incorrectly specified solution is passed on(wrong materials are purchased, disconnect with clients)

  •Market potential is under-/overestimated
• errors and conflicts in execution phase


  •Transfer of data not executed

  •Overselling by Sales(Promises on specs or delivery time that are unrealistic)

  •Internal errors leading to delivery defects:

  •Machine and transport breakdowns

  •Staffing shortages

  •Product mix in order is not compatible

  -Finance does not invoice
• relationship between operations and other business functions

  As shown, all business functions are connected to each other.

  
  

  The frequency and intensity of these interfaces vary depending on the task.