8/8/2019 1. Introduction to Operations Management

1/11

11/11/20

INTRODUCTIONTO

OPERATIONS MANAGEMENT

Mursyid Hasanbasri

What is Operations Management?

A set of management activities [Plan-Do-

Evaluate-Improve] related to value creation

process in the form of good and services with

effective and efficient way.

8/8/2019 1. Introduction to Operations Management

2/11

11/11/20

Do

Evaluate

Improve

Plan Input Process OutputMaterialMoneyResourcesTime

Added Value

EffectiveEfficient

IndicatorBetterFasterCheaperSafer

What does OM talk about?

Delivering a firms good and services in themost effective and efficient manner which iscritical to survival regardless economicconditions

It talks about services as well as

manufacturing Making processes work right

Creating dramatic improvements incustomer service and cost reductions

8/8/2019 1. Introduction to Operations Management

3/11

11/11/20

Services

Intangible process

Some degree ofinteraction with cust.

Inherentlyheterogenous

Perishable

Spec. of service affectfive senses

Goods

Tangible output

Interaction with cust. isnot essential

Less variability

Can be stored

>