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Manufacturing Organizations (Reid & Sanders

Operations management involves overseeing key functions like customer service, quality control, and supply chain management to help organizations efficiently produce goods and services. There are two main types of organizations - manufacturing produces physical goods while service provides intangible products. Effective operations management follows ten principles like addressing the root causes of problems, motivating employees, and adapting to changes in the market.

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Samuel Ferolino
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36 views

Manufacturing Organizations (Reid & Sanders

Operations management involves overseeing key functions like customer service, quality control, and supply chain management to help organizations efficiently produce goods and services. There are two main types of organizations - manufacturing produces physical goods while service provides intangible products. Effective operations management follows ten principles like addressing the root causes of problems, motivating employees, and adapting to changes in the market.

Uploaded by

Samuel Ferolino
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Operations Management  Scope of Operations Management in the

Workplace
 Profit is generally the primary goal of
- Customer Service
businesses (Non-profit Organizations as an
- Product or Service Quality
exception) - Correctly-functioning processes
- Market Competitiveness
 3 Basic Functional Areas of a Business - Technological advances
- Finance - Profitability
- Operations - Product Design
- Marketing
 Strategic Areas of Management
 Operations – the part of a business - Strategic Operations Management – Its
organization that is responsible for ultimate purpose is to help an organization
producing goods and/or services. increase performance through improved
 operations is the broadest function of a effectiveness, efficiency, and flexibility
business/ the area that requires the most - Supply Chain Management - involves
manpower managing the flow of materials and
information from suppliers and buyers of
 2 Categories of Organizations in terms of raw materials all the way to the final
operations customer.
- Manufacturing Organizations - Total Quality Management - seeks to
- Service Organizations improve quality by eliminating causes of
product defects and by making quality the
 Manufacturing Vs. Service Organizations responsibility of everyone in the
organization.
Manufacturing Service
 10 Principles of Operations Management
Physical Product Intangible Product
(Schaefer, 2007)
Product can be Product cannot be - Reality: There is no universal solution to the
inventoried inventoried problems in your business.
Low Customer High Customer - Organization: You must organize all
Contact Contact aspects of production into a coherent
Capital Intensive Labor Intensive
whole.
Nota Bene: Organizations that exhibit some - Fundamentals: Adhere to fundamentals,
characteristics of each type of organization in such as accurate inventory records.
terms of operations are called quasi- - Accountability: People try harder when
manufacturing organizations (Reid & Sanders, they’re held accountable.
2011). Examples of these are Fast food chains - Variance: Variance is part of every
and Postal Services process.
- Causality: Problems are often symptoms.
 Transformation Process
Get to the root cause.
- Managed Passion: People with a passion
for their jobs will drive your company.
- Humility: You don’t have to know
everything.
- Success: Define success, and change
with the market.
- Change: Every manufacturing solution is
temporary.

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