OPERATION MANAGEMENT : OPERATION MANAGEMENT Operation Management deals with processes that produce goods and services that people use every day.
PROCESS: its an activity or groups of activities that takes one or more inputs, transforms and adds value to them, and provides one or more output for its customers.
PROCESS AND OPERATIONS : PROCESS AND OPERATIONS INPUTS
Energy Process and Operations Internal andExternal customers Information onPerformance Outputs
Goods 1 2 3 4 5
DIFFERENCES BETWEEN MANUFACTURING AND SERTVICES : DIFFERENCES BETWEEN MANUFACTURING AND SERTVICES More Like a More Like amanufacturing Serviceorganization organization Physical durable product
Output that can be stored
Low customer contact
Long response time
Regional, national or International markets.
Quality easily measured Intangible perishable product
Output cannot be stored
High customer contact
Short response time
Quality not easily measured
SIMILARITIES BETWEEN MANUFACTURING AND SERTVICES : Both manufacturing and service organizations offer a complete package, not just only either product or services.
Both organizations inventory their inputs.
Both types have inside or outside customers. SIMILARITIES BETWEEN MANUFACTURING AND SERTVICES PRODUCTIVITY Productivity is the value of outputs (goods and services) produced divided by the values of input resources (wages, cost of equipment) used
Productivity = Output
OPERATION STRATEGY : OPERATION STRATEGY Corporate Strategy
New product / services
Global strategies Functional Area Strategies
Marketing Others Market Analysis
Need assessment Competitive Priorities
Flexibility Others Capabilities