Unit I: Introduction To Operations Management (Chapters 1, 2 & 3)

Unit
I: Introduction to Operations Management

(Chapters 1, 2 & 3)
After completing this unit, the student should be able to:

1. Discuss why operations management is so important to today's business
environment.
2. Define operations management.
3. Describe the framework of operations decisions.
4. Explain cross-functional decision-making.
5. Provide examples of cross-functional decision-making.
6. Explain operations as a process.
7. Discuss contemporary operations themes.
8. Explain the operations strategy model.
9. Compare and analyze operations objectives.
10. Describe linking strategies.
11. Explain distinctive competence.
12. Define “value proposition.”
13. Discuss the global scope of operations.
14. Describe supply chain strategy.
15. Compare strategies for new-product introduction.
16. Describe the new-product development process.
17. Explain cross-functional product design.
18. Define quality function deployment.
19. Explain “value analysis.”
20. Explain modular design
Chapter One is aimed at providing an overall framework for the textbook and the operations
management field. The operations function is essential to every business. Operations
management is defined as decision making in the operations function and integration of
these decisions with other functions. The decision framework serves as a convenient way of
thinking about major operations management decisions: process, quality, capacity, and
inventory. These decision types are useful for diagnosing existing operations or identifying
the types of decisions required in new operations. The process view of operations and
business is a unifying approach for studying and improving all manufacturing and service
companies. Changes in the systems environment, including changes in the global economy,
frequently require corresponding changes in operations. There are seven contemporary
themes in operations that are emerging and will expand. These themes are services and
manufacturing customer-direct operations, lean operations, integration of operations with
other functions, environmental concerns, supply chain management, and globalization of
operations.
Chapter Two reflects the increasing importance of operations and operations strategy in
today's business environment. The operations function must be linked to the business
strategy and other functional strategies, leading to a consistent pattern of decisions, unique
capability, and competitive advantage for the firm. The operations strategy consists of
mission, distinctive competence, objectives and policies. These four elements must be tightly
integrated with each other and with other functions. The operations mission should be
aligned with the business strategy. Distinctive competence of operations should support the
mission and differentiate operations from its competitors. The objectives of operations are
cost, quality, delivery, and flexibility. Operation policies should indicate how operations
objectives will be achieved. Operations policies should be developed for each of the major
decision areas (process, quality, capacity, and inventory). There is no one best strategy for
all operations. The mission, distinctive competence, objectives, and policies of operations
depend on whether a product imitator, product innovator, or other strategy is being pursued
by the business. Business strategy can be built on a sustainable distinctive competence that
is difficult for competitors to copy or imitate. The scope of operations strategy is now
expanding to a global basis, particularly for those businesses pursuing a global business
strategy. In some situations the basis of competition is not the firm, but the entire supply
chain. Supply chain strategy is an extension of operations strategy that considers not only
the firm but also the strategies of its supply chain partners.
Chapter Three describes how product design relates to the operations function. New-product
design has a great impact on operations, since it determines the specifications for the
product. Likewise, operations can constrain the firm's ability to develop new products and
make them more costly to produce. As a result, operations should be deeply involved in new-
product development. There are three ways to develop new products: market pull,
technology push, and inter-functional. The inter-functional approach is usually the best since
it includes both market and technological considerations in the new-product design. There
are three phases that the new-product development process can be specified in companies:
concept development, product design, and pilot production/testing. Concurrent engineering
uses overlapping phases for product design rather than a sequential approach. NPD teams
are formed with representation from all major functions (marketing, engineering, operations,
and finance/accounting), to ensure cross-functional integration. Quality function deployment
is used to connect customer attributes to engineering characteristics. Designing for
manufacturability can be accomplished by product simplification or modular production.
Product simplification is done through value analysis, to achieve the maximum usefulness for
the customer at the lowest cost. Modular design is concerned with minimizing the number of
different parts needed to make a product line of related products.
Chapter 1: The Operations Function

Chapter 2: Operations and Supply Chain Strategy
Chapter 3: Product Design
1. operations management (page 4)

2. four major decision responsibilities (page 4)
3. operations leader (page 7)
4. operations functions and decisions (page 8)
5. cross-functional decision making (page 9)
6. operations as a process (page 12)
7. inputs (page 12)
8. outputs (page 12)
9. contemporary operations themes (pages 14-16)
10. functional strategy (page 20)
11. corporate strategy (page 20)
12. business strategy (page 21)
13. distinctive competence (page 22)
14. objectives of operations (page 25)
15. linking strategies (page 26)
16. operations competence (page 28)
17. supply chain strategy (page 31)
18. strategies for new-product introduction (page 38)
19. market pull (page 38)
20. technology push (page 38)
21. interfunctional view (page 39)
22. cross-functional product design (page 42)
23. quality function deployment (page 43)
24. value analysis (page 47)
25. modular design (page 48)
Instructions: The questions listed below are from Section Exam I. These questions are
based on the materials covered in this Unit. You should prepare your answer to these
questions while studying this unit. Do not submit your answers to CSU at this time.
You will submit the Section Exam once all exam questions have been answered.
Your answer to each essay question should contain a minimum 200-300 word response. You
may use additional Internet references and professional journals to defend your response,
and reference these sources within your answer. Refer to the APA style manual for citation
guidelines.
Section Exam I
Question I: Identify the critical operations decision areas in an organization and discuss the
responsibilities of an operations manager while addressing these decisions. Give an example
from your own work experience, or a reading.
Question II: Briefly justify the following statement: "The Operations Mission of a firm should
be aligned with its business strategy." Personalize your answer to your own work experience.
Section Exam I is located after Unit Four. Remember; do not submit your answers until
all essay question for the Section Exam are completed. All Eight essay questions will
be submitted in one Mircrosoft word document.
You are now ready to take the Unit Assessment. In order to prepare for the
assessment, review the chapters in this Unit. If you have any questions regarding any
of the concepts presented within these chapters, contact your professor for
assistance.

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Unit

I: Introduction to Operations Management

After completing this unit, the student should be able to:

Chapter 1: The Operations Function

1. operations management (page 4)

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