Operations Management introduction wk1

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Presentation Transcript

Slide 1: 

Operations Management An introduction

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What is operations management? Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services. Operations management defined

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The operations function is fashionable! The consultancy services market – % of world revenues of 40 largest consultancy firms

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They are all operations

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A general model of operations management Transformed resources … Materials Information Customers Transforming resources … Facilities Staff Customers Output products and services Input resources

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Operations Management at IKEA

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Prêt a Manger

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The three basic functions at Prêt a Manger Marketing Operations Product /Service Development

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All operations are transformation processes … Transformation process

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Transformed resources … Materials Information Customers Transforming resources … Facilities Staff Customers Input resources Some inputs are transformed resources Some inputs are transforming resources Outputs are products and services that add value for customers Transformation process

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Transformed resources … Ingredients Packaging Customers Input resources Transforming resources … Equipment Fittings Staff At Prêt a Manger

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The output from most operations is a mixture of products and services Mixture of products and services – Outputs that are a mixture of the tangible and the intangible Prêt a Manger Acme Whistles Mwagusi Safari Lodge Crude oil production Aluminium smelting Specialist machine tool production Restaurant Information systems provider Management consultancy Psychotherapy clinic Pure products – Outputs that are exclusively tangible Pure services – Outputs that are exclusively intangible IKEA

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Operations can be analysed at three levels

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Operations management is concerned with the flow of transformed resources between operations, processes and transforming resources, where … Processes form an internal ‘supply network’ and become each other’s customers and suppliers External operations interact with internal processes to form the external supply network

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Three levels of operations management analysis: the supply network, the operation, and the process Programme / video maker

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Three levels of operations management analysis: the supply network, the operation, and the process The operation – Flow between processes The programme and video operation

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Three levels of operations management analysis: the supply network, the operation, and the process Processes – Flow between resources (people and facilities) The ‘Set and props manufacturing’ process

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Three levels of operations management analysis: the supply network, the operation, and the process

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Differences within sectors are often greater than the differences between sectors

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A Typology of Operations

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A Typology of Operations Implications Implications

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A Typology of Operations Implications Implications

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A Typology of Operations Implications Implications

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A Typology of Operations Implications Implications

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A Typology of Operations Implications Implications

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Volume Variety Variation Visibility Low High High High High Low Low Low 4 V’s profile of two operations

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Some inter-functional relationships between the operations function and other core and support functions

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Conventionally, organizational boundaries are drawn around functional processes

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BPR advocates reorganizing (reengineering) micro operations to reflect the natural customer-focused business processes Function 1 Function 2 Function 3 Function 4 Customer needs fulfilled Customer needs

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Example of how each micro operation contributes to the business processes which fulfil external needs