M A R Í A G O N Z Á L E Z B L Á Z Q U E Z

Á L V A R O T E R R Y Á L V A R E Z

F E L I S A D E L V I E J O N Ú Ñ E Z

Operations management

Index

What is Operations Management?

Why Study OM?

What Operations Managers Do?

Organizing to Produce Goods and Services

• Goods .Definition and characteristics

• Services. Definition and characteristics

The Heritage of OM

Operations as a Service

What is Operations Management?

OM is defined as:

“The Science and the Art of ensuring that goods and services are created and delivered successfully to customers”

What is Operations Management?

Deals with :

The design and management of

products

processes

services

supply chains

It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want.

Why Study OM?

OM is an integrative body of knowledge; whoseskills are needed in industries as diverse as healthcare, education, telecommunications, lodging, foodservice, banking, consulting and manufacturing

Why Study OM?

OM is one of the three major functions of any organization, and its integrally related to all the other business functions.

We study OM because we want to know how goods and services are produce.

We study OM to understand what operations managers do.

We study OM because it is such a costly part of an organization.

What Op. Managers Do?

What Op. Managers Do?

Key activities;

Helping organizations to do more with less

Exploiting technology to improve productivity

Building quality into goods, services, and processes

Determining Schedules

Creating a high-performance workplace

Continually learning and adapting the organization to global and environmental changes

Organizing to Produce Goods and Services

A Good is a physical product that you can see, touch, or possible consume

Durable Goods --> >= 3 years

Non-Durable --> <3 years

A Service is any primary or complementary activity

Characteristics of goods

Tangible product

Production usually separate from consumption

Can be inventoried

Low customer interaction

Characteristics of services

Intangible product

Produced & consumed at same time

Often unique

High customer interaction

Often knowledge-based

What is a service and a good?

1. “If you drop it on your foot, it won´t hurt you”

GOOD OR SERVICE?

2. “Services never include goods and goods neverinclude services”

1. TRUE OR FALSE

3.

GOODS SERVICES

1. Can be resold

2. Can be inventoried

3. some aspects of quality measurable

4. Selling is distinct from production

5. Transportable

6. Often easy to automate

1. Reselling unsual

2. Difficult to inventory

3. Qualify dificult to measure

4. Selling is part of service

5. Provider, not product, is transportable

6. Often difficult to automate

The Heritage of OM

The Heritage of OM

Industrial revolution Division of Labor , Adam Smith

Scientific Management Moving Assembly Line , Henry Ford

Human Relations Motivation theories

Management Science Linear Programming, George Dantzig

Quality revolution JIT and TQM

Globalization EU

Information Age/Internet revolution www, ERP , E-commerce, supply chain management

1776

1913

1940’s-60’s

1947

1970

1970’s-80’s

1990’s

Five eras of operation management

Operations as a Service

Repair and Maintenance

Government

Food and Clothing

Transportation

Insurance

Financial

Education

Legal

Medical

Other Professional Occupation

BUT..

Goods contains services & services contain goods

Example

“if a person goes to a restaurant that offers food, the food would become the good, while the ambience or the waiter’s service will become service”

CASE STUDY

ANY QUESTIONS?