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MSC - 705 Lecture 5

This document provides an overview of key topics in operations management. It discusses chapters 1 and 2 which cover using operations to create value, process strategy and analysis. It defines key terms like process, operation, and operations management. It also compares manufacturing and service processes and discusses similarities. Competitive priorities and capabilities are explained. Examples of manufacturing and service sectors are given. The document discusses operations strategy, competitive priorities, productivity calculations, and links to videos that further explain process strategy and productivity.

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Farhan Habib
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24 views24 pages

MSC - 705 Lecture 5

This document provides an overview of key topics in operations management. It discusses chapters 1 and 2 which cover using operations to create value, process strategy and analysis. It defines key terms like process, operation, and operations management. It also compares manufacturing and service processes and discusses similarities. Competitive priorities and capabilities are explained. Examples of manufacturing and service sectors are given. The document discusses operations strategy, competitive priorities, productivity calculations, and links to videos that further explain process strategy and productivity.

Uploaded by

Farhan Habib
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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LECTURE 5

Chapter 1: Using Operation to Create Value


Chapter 2: Process Strategy and Analysis
Mercedes Benz Plant
Private Airways
The Operations System
Process: Any Activity or Group of Activities that Takes
One or More Inputs, Transforms them and Provides
One or More Outputs for its Customers.

Input Transformation Output Demand

Operation: A Group of Resources Performing All or Part


of One or More Processes
Operations Management
What is it?
Systematic design, direction & control of processes that
transforms inputs into outputs

Why Studying it?


A Process View
Usual Difference Between
Manufacturing & Service Processes
Manufacturing Service
Physical, Durable Intangible, Perishable
product product

Output can be Output can’t be


inventoried

Low Customer contact High Customer contact

Long Response Time Short Response Time


Usual Difference Between
Manufacturing & Service Processes
Manufacturing Service

Regional, National or Local Markets


International Markets
Large Facilities Small Facilities

Quality easily measured Quality easily not


measured
Capital Intensive Labor Intensive
Similarities
Service providers do not just offer services and
Manufacturers do not just offer products

Inventory is a part of both processes in different forms


A Supply Chain View
Manufacturing Sector
Auto
Chemical
Commercial Aircraft
Computer & Copiers
Consumer Electronics
Machine Tools
Steel Textiles and many more
Service Sector
Airlines
Consulting
Education
Entertainment
Health care
Hotel & Food services
Insurance & Financial services
Tourism
Sports and many more
Slides from 14 to 22 Discussed in
following Videos Respectively

https://youtu.be/7Zkgsw91k74 Competitive Priorities

https://youtu.be/JnBzMKIOm18 Productivity
Operations Strategy

By which operations implements the


firm’s corporate strategy and helps to
build a customer driven firm.
Competitive Priorities & Capabilities
How do firms compete?
Cost

Quality
 High Performance
 Consistency
 Service
Competitive Priorities & Capabilities
Delivery Time
 Fast
 On time

 Flexibility
 Customization
 Volume Flexibility
Formula of Productivity
Value of
Output
Productivity =
Value of
Input
Calculate the Labor Hour productivity
for the following operation:

Three employees processed


600 insurance policies last
week. They worked 8 hours per
day, 5 days per week.
Calculate the Multi Factor productivity for the
following operation:

A team of workers made 400 units


of a product, which has a standard
cost of $10 each. The accounting
department reported that for this
job the actual costs were $400 for
labor, $1000 for materials & $300 for
overhead.
Chapter 2: Process Strategy
& Analysis

https://youtu.be/QBE7l07HZsk Process Strategy

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