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Intro to Business Adm L100 LEC 8_ OM (1)

The document provides an introduction to operations management, defining its importance in producing goods and services while emphasizing the transformation process. It outlines various process types for manufacturers and service providers, as well as the significance of quality management and total quality management (TQM) in meeting customer expectations. Learning objectives include understanding operations management concepts, process classifications, and quality control strategies.

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2 views24 pages

Intro to Business Adm L100 LEC 8_ OM (1)

The document provides an introduction to operations management, defining its importance in producing goods and services while emphasizing the transformation process. It outlines various process types for manufacturers and service providers, as well as the significance of quality management and total quality management (TQM) in meeting customer expectations. Learning objectives include understanding operations management concepts, process classifications, and quality control strategies.

Uploaded by

mahfuzmohammedabulkhair
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTRODUCTION TO

BUSINESS
ADMINISTRATION
DIMG 105

INTRO TO OPERATIONS
MANAGEMENT
Lecture 8

Lecturer: Sena Esi Govina (Mrs.)


Learning Outcomes or Objectives
Students should be able to:

1.Define what we mean by operations management


2.Draw the operations management transformation model
3.Differentiate between a product and a service
4.Identify the five categories of process types for manufacturers.
5.Identify the three categories of process types for service providers
6.Describe Operations planning and control
7.Identify the activities and underlying objectives involved in total quality
management
What Does Operations Mean Today?

• Operations (Production)
• activities involved in making products — goods and services — for customers

• Service Operations (Service Production)


• activities producing intangible and tangible products, such as entertainment,
transportation, and education
• Goods Operations (Goods Production)
• activities producing tangible products, such as radios, newspapers, buses,
and textbooks
OPERATIONS MANAGEMENT
• Operations is the production of goods and services.

• Operations management is concerned with management of the


transformation process.
• Importance of operations management
• Reduce the costs
• Increase the revenue
• Reduce the amount of investment
• Provide the impetus for new innovation
• Defining terms used in operations management
• Operations function
• Operations managers
• Operations management
The Resource Transformation
Process
Operations-management strategies
and performance objectives
• Focus on customers’ needs and continually formulate strategies
and objectives to maintain, strengthen and expand competitive
position and customer base
• Six customer/client needs
• Higher quality
• Lower costs
• Shorter lead time
• Greater adaptability
• Lower variability (inconsistency)
• High level of service
The transformation model

• Operations function is primarily concerned with the application of


resources by means of a transformation process to provide outputs
• Model could apply to both manufacturers and service providers
• Model comprises three main components:
• Inputs
• Transformation process itself
• Outputs
A basic transformation model
Inputs

• Resources to be transformed include:


• Material
• Customers
• Information
• Resources required to make transformation possible:
• Human resources
• Equipment and facilities
• Technology
The transformation process

• Inputs are converted into outputs in the transformation process


• Three main types of resource inputs are addressed:
• Transformation of materials
• Transformation of information
• Transformation of customers/clients
Outputs

• Ultimate goal of transformation process is to convert or process


inputs into outputs

• Characteristics of products manufactured and services provided


differ
Characteristics of products and
services
The classification of process types
for manufacturers
• Five main categories are identified:
• Project processes – construction of roads

• Jobbing processes – Producing unique products with specific


requirements for customers (one-off production) i.e. building
• Batch processes – Producing products in batches i.e.
bakeries
• Mass processes – production of large amount of
standardized products i.e. fuel, cars

• Continuous or repetitive systems – The production of goods


without interruption. It is a form of mass production.
The classification of manufacturers’
operational processes
The classification of service
providers’ operational processes
The components of products and
services
• Product or service is broadly defined as anything that can be offered
to a customer in order to satisfy his or her needs
• Products and services consist of three interdependent components:
• Idea or concept
• Package composition of products and services
• Process for creating the package
The nature of operations planning
and control
Capacity planning and control

• Capacity planning and control focus on the provision of


manufacturing and/or service capacity of a particular operations
process
• Capacity is the maximum level of value-added activity over a period
of time that the process can achieve under normal operating
circumstances
• Capacity – The capability of a worker, a machine, a workcenter, a
plant, or an organization to produce output in a time period.
Examples of Capacity
Quality planning & control

• Quality is one of the main methods of adding value to products


and/or services
• From an operations management perspective, quality is defined as
consistent conformity to customers/client expectations
• The difference between expected quality and perceived quality is
known as the quality gap
• Operations management, in conjunction with other functional areas,
should endeavour
to eliminate any quality gaps.
Managing for Quality

• Total Quality Management (TQM)

• all activities involved in getting high-quality goods and services into the
marketplace
Total quality management (TQM)

• TQM is a management philosophy, with the primary aim of satisfying


needs and expectations of customers/clients by means of high-
quality products or services

• Focal point of TQM is the underlying processes that occur at each


customer and supplier interface
Defining TQM

• Meeting the needs and expectations of customers


• Covering all parts of the business regardless of how small
they are
• Making every employee in the business quality conscious
• Identifying and accounting for all costs of quality
• Doing things right the first time
• Developing and implementing systems and procedures for
quality
• Establishing a continuous process for improvement
Review questions

• Differentiate between goods production and service operations.


• Identify the activities and underlying objectives involved in total
quality management

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