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MGT 460OPERATIONS MANAGEMENT
Introduction
Dr. Aneel SALMANDepartment of Management Sciences
COMSATS Institute of Information TechnologyISLAMABAD
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Book Operations Management, Contemporary
Concepts and Cases, 2nd edition, 2004,Roger G Schroeder
Operations Management- An IntegratedApproach, 2nd Edition, 2005 R Dan Reidand Nada R Sanders
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Economy is bad .lets be an
entrepreneur !What business aspects would youconsider for starting a Fusion Foodrestaurant in Islamabad?
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Cross-Functional Nature of Operations
MARKETING FINANCE
OPERATIONS
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What is Operations?
It is the process by which inputs are transformedinto outputs.
Input OutputTransformationProcess
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Types of Transformations Physical
Locational
Exchange
Storage
Physiological Informational
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What is Operations Management?
It is the management of process by which inputsare transformed into outputs.
Input OutputTransformationProcess
Operations
Management
Resources :Human
MaterialFinancialInformational
Products &
Services
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Definition
Operations is responsible for supplying the product or service of the organization.
Operations managers make decisionsregarding the operation functions and itsconnection with other functions. Theoperations managers plan and control the
production system and its interfaces withinthe organization and with the externalenvironment.
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Goods and Services
Pure Good Pure ServiceMixture Goods & Service
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Key Decision Areas in OM
Process Quality Capacity Inventory
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Relation of Operations its environment
Operations transformation systemSuppliers
Human
ResourcesMarketing
Accounting Finance MIS
Engineering
SOCIETY
GOVERNMENT
ExternalEnvironment
CUSTOMERS
COMPETITORS
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Trends in OM
Supply Chain Globalization of Operations
Environmental Concerns Customer-Directed Operations E-Commerce
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Trends in 2014
Manufacturers will begin to build 3D value chains. Operational, information, and consumer
technology converge to reshape approaches totechnology management.
Operational resiliency will be the focus of supplychain strategies in 2014 and beyond.
Supply chain technology investment will involvemodernizing existing systems, while also tryingnew approaches.
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The modernization of the underlying B2Bcommerce backbone becomes an
investment priority for IT. Product life cycle management (PLM)
strategies become increasingly global,
multidisciplinary, innovation-based, andcustomer-focused.
PLM initiatives will focus on value
realization.
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Servitization optimization will be core to future profitable revenue growth and leading
manufacturers will make the necessaryinvestments to enable these strategies. On their way toward the factory of the future,
2014 will set the stage for a new manufacturingrenaissance.
Plant floor IT investments will continue to becomea higher share of the overall technology
investment portfolio.
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Dr. Michael Porter
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Dr. N. Venkat Venkatraman
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3D Value Chain