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Introduction To OP MGNT. MGT303

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Operations Management with

TQM
Lecturer : Maria Mariel D. Perea, MBA
CHAPTER 1
INTRODUCTION TO
OPERATIONS MANAGEMENT
 OPERATIONS MANAGEMENT
10th Edition
REFERENCE :  STEVENSON – MCGRAWW HILL
International Edition
 The management of systems or processes
that create goods and/or provide services
 Goods – are physical items produced by
Operations business organizations
Management  Services – activities that provide some
combination of time, location, form and
psychological value.
Three basic functions of
the organization
Operations and supply chains – one couldn’t
exist without the other and no business
organization can exist without both.

Supply Chain is the sequence of


SUPPLY organizations - their facilities , functions and
CHAIN activities – that are involved in producing and
delivering of a product and service
PRODUCTION SYSTEM
Food Processor
Hospital
Process
Goods Service
Continuum
 Production of goods – tangible output
 Delivery of services – an act
 Service job categories
 Government
Production of
Goods vs.  Wholesale/retail
Delivery of  Financial services
Services  Healthcare
 Personal services
 Business services
 Education
 Degree of customer contact
 Uniformity of input
 Labor content of jobs
 Uniformity of output
KEY  Measurement of productivity
DIFFERENCE  Production and delivery
S
 Quality Assurance
 Amount of inventory
 Evaluation of work
 Ability to patent design
 Forecasting
 Capacity planning
Scope of  Scheduling
Operations  Managing inventories
Management
 Assuring quality
 Motivating employees
 Deciding where to locate facilities
Responsibilities
of Operations
Management
 What : What resources will be needed and in what
amounts?
 When : When will each resource be needed? When
should the work be scheduled? When should
Key Decisions of materials and other supplies be ordered? When is
Operations corrective action needed?
Managers  Where: Where will the work be done?
 How: How will the product or service be designed?
How will the work be done (organization, methods,
equipment)? How will resources be allocated?
 Who: Wo will do the work?
 The Internet, e-commerce, e-
business
Trends in
Business  Management technology
 Globalization
 Management of supply chains
 Agility
End .

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