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1. Introduction to Operations Management

2. Contents I. The operations system in Organizations Example: The operations system for a Department store Example : The operations system for a farm II. Manufacturing operations Versus Service operations III. Goods-service Continuum IV. Manufacturing vs Service V. Management-Process Management VI. Operations Management Defined

4. The process of changing inputs of labour, capital, land and management into outputs of goods and services. Conversion Process Random Fluctuations Unplanned or uncontrollable environmental influences (strikes, floods, etc.) that cause planned and actual output to differ. Feedback Information in the control process that allows management to decide whether organizational activities need adjustment Technology The level of scientific sophistication in plant, equipment, and skills in the conversion process. Contd. …The operations system in Organizations

5. Value-Added The difference between the cost of inputs and the value or price of outputs. Contd. …The operations system in Organizations Inputs Land Labor Capital Transformation/ Conversion process Outputs Goods Services Control Feedback Feedback Feedback Value added

8. II. Manufacturing operations Versus Service operations A conversion process that includes manufacturing (or production) yields a tangible output: a product. In contrast, a conversion process that includes service yields an intangible output: a deed, a performance, an effort.

9. Steel production Automobile fabrication Home remodeling Retail sales Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing High percentage goods Low percentage service III. Goods-service Continuum Low percentage goods High percentage service

10. IV. Manufacturing vs Service Characteristic Manufacturing Service Output Customer contact Uniformity of input Labor content Uniformity of output Measurement of productivity Opportunity to correct Tangible Low High Low High Easy High Intangible High Low High Low Difficult Low quality problems High

11. V. Management-Process Management Process Management One of several theories of classical management, emphasizing management as a continuous process of planning, organizing and controlling to influence the other’s actions. Planning Controlling Organizing

13. VI. Operations Management Defined Operations Management Management of the conversion process, which converts land, labour, capital and management inputs into desired outputs of goods and services.