Introduction to

Operations Management

What is Operations Management (OM)?

Operations Management
The systematic design, direction, and control of processes that transf
orm inputs into services and products for internal, as well as external,
customers

Supply Chain Management (SCM)

The synchronization of a firms processes with those of its suppliers a
nd customers to match the flow of materials, services, and informati
on with customer demand

The Role of Operations in the Organizatio

n

What is Operations Management (OM)?

A Process View

What is Operations Management (OM)?

The Supply Chain View

Value addition & Waste elimination

Why OM?

Competitive Priorities
The critical dimensions that a process or supply chain MUST possess t
o satisfy its internal or external customers, both now and in the futur
e

Competitive Capabilities
The cost, quality, time, and flexibility dimensions that a process or su
pply chain ACTUALLY possesses and is able to deliver

Effective OM strategy closes the gap

between competitive priorities and competitive capabilities!!

Why OM?

If we fail to have an effective

OM

Source: Honey Butter Chips: Six things to know

http://www.koreatimes.co.kr/www/news/nation/2014/11/511_168634.ht
ml

Tools for Efficient OM

Project Management (chapter 2)

Process Management (chapter 3, 4, 7)

Quality Management (chapter 5)

Capacity Planning (chapter 6)

Inventory Management (chapter 9)

Supply Chain Management (chapter 10, 12, 13)

Facility Location (chapter 11)

Forecasting (chapter 14)

Scheduling (chapter 15)

Resource Planning (chapter 16)

8