There are … You can change your ad preferences anytime. If you continue browsing the site, you agree to the use of cookies on this website. The arrow labeled “Transformation System” is the critical element in the model that will determine how well the organization produces goods and services that meet customer needs. UPS picks up computers from Toshiba owners. See our Privacy Policy and User Agreement for details. Most Toshiba customers think that Toshiba is doing a great job of repairing their computers, when in fact Toshiba never touches the computers! Operations Management: Blueprint for a commercial operations management solution. In this unit production system and its objectives are explained along with the components of a system. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Lecture notes. If they simply had everyone come in whenever they wanted, there would be times when the staff would have nothing to do (but be obligated to be there, and be paid), and other times when there would be too much to do and capital and customers would be lost. Operations management for service providers. ). ), or a government agency; all organizations must strive to maximize the quality of their transformation processes to meet customer needs. An opposite example of the strategic implications of the input/output transformation process is 3M’s decision in the 1980s to stop manufacturing VHS tape for video players and recorders. Each execution is measured relative to the specific instance and that specific consumer, making tools like NPS surveys and other measures of individual satisfaction highly useful in optimizing. Operations management transforms inputs (labor, capital, equipment, land, buildings, materials, and information) into outputs ( goods and services ) that provide added value to customers. To understand how service operations function, let’s first take a look at what is considered a service. 1 introduction to operations management ... Introduction to Operations Management Operations management is the management of that part of an organization that is responsible forproducing goods and/or services. For example, if an organization makes furniture, some of the operations management decisions involve the following: If the organization makes good operations decisions, it will be able to produce affordable, functional, and attractive furniture that customers will purchase at a price that will earn profits for the company. The old approach of providing this service was cumbersome and time-consuming: Under this traditional approach, the total time to get a laptop computer repaired was two weeks—a long time for people to be without their laptop! An adhesive that is sticky enough to hold items in place (but not too sticky that it can not be removed and readjusted if necessary! 7: Process Technology ERP Systems : 8: Process Analysis Process Flow Models : 9 They occur, or they do not occur. All organizations must strive to maximize the quality of their transformation processes to meet customer needs. Involvement – Consumers are often directly involved in the service delivery. 1. Introduction to Operations Management Unit Introduction Operations, as it is termed, are focused on conversion of input to output. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Services operations often encounter different opportunities and challenges than tangible goods, and thus require unique operational considerations. The history of operations management is portrayed. Mac vs. pc: the stereotypes may be true cnn.com, Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), Trillion Dollar Coach Book (Bill Campbell). See our User Agreement and Privacy Policy. Controlling the transformation process makes it extremely difficult for competitors to produce tape of the same quality as Magic Tape, allowing 3M to reap significant profits from this superior product. The other two areas of strategic importance to the organization are marketing and finance. It does not matter whether the organization is a for-profit company, a non-profit organization (religious organizations, hospitals, etc. July 3, 2012. Operations Management Course description: This operations management course is intended to be a survey of the operating practices and procedures found in both manufacturing and service delivery firms.We will focus our attention on those business processes and procedures used to transform inputs into finished goods and services. Global Text Project, Business Fundamentals. Global Text Project, Business Fundamentals. Operations management transforms inputs (labor, capital, equipment, land, buildings, materials and information) into outputs (goods and services) that provide added value to customers. For example, United Parcel Service (UPS), an international package delivery service, formed a partnership with its customer, Toshiba computers. the type of technologies that the organization will use. A teacher may teach you a topic, and another teacher may teach you the same topic in another course. Learn more. Explain the role of operations management. As the ‘5 I’s of Services’ indicate, most services tend to be completely unique. The two 3M examples of Magic Tape and VHS tape show how important the transformation process and operations management can be to providing and protecting an organization’s competitive advantage. While there are countless considerations to be made, many of which are unique to specific organizations or industries, these core operational decisions are strong indications of the mentality service management specialists consider: Choosing where to open a facility, how to lay out the facility, what size is appropriate, and overall how efficiently a given space can be used relative to the cost are key considerations. Inconsistency – Services tend to be unique. how much long-term capacity the organization will provide to meet customer demand. Consider a car mechanic opening a garage. AMA International University College of administrative and Financial Science Prelim Lecture Note # 1 Subject:-Management Science – 2 ABI-301Introduction to operations Management Prepared by: Abdulaziz Al-Sa’adi http://Amaiu.pbwiki.com aziz.alsaadi@gmail.com Contact Number 36704704. LEC # TOPICS; 1: Introduction Operations Overview : 2: Project Management New Product Development and 3-DCE : 3: Operations Strategy Operations Analysis : 4: Inventory Management : 5: Process Technology : 6: Process Technology (cont.) UPS hired, trained, and certified its own employees to repair Toshiba laptop computers. (adsbygoogle = window.adsbygoogle || []).push({}); Operations management is the management of processes that transform inputs into goods and services that add value for the customer. Improving overall quality through measuring consumer satisfaction, planning facilities for optimal use of space, and effective scheduling are a few examples of considerations service operators consider. The operations strategy should support the overall organization strategy. One useful perspective in differentiating services from other goods is the ‘5 I’s of services’ perspective. Scribd will begin operating the SlideShare business on December 1, 2020 Managing operations is just as critical on the service side as it is on the product side. If the organization has made mostly good operating decisions in designing and executing its transformation system to meet the needs of customers, its prospects for long-term survival are greatly enhanced. Understanding this field of work requires an understanding of what a service constitutes. Following these ratings, operational specialists must consider the comments received and work to find a way to integrate this feedback into future services. Each teacher will deliver this topic somewhat differently. Figure 1 summarizes the transformation process. If you continue browsing the site, you agree to the use of cookies on this website. Magic Tape is used for everyday taping applications, but it offers attractive features that most other tapes do not, including: For several decades, 3M has enjoyed a substantial profit margin on its Magic Tape product because 3M engineers make the manufacturing equipment and design the manufacturing processes that produce Magic Tape. The consumer is the center of the service, and thus each instance of the service is unique based on the individual involved.
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