History of Operations Management
• Industrial Revolution
• Scientific Management
• Human Relations
• Management Science
• Quality Revolution
• Information Age
Operations Management - An Introduction
1. understand the role of operations in business
2. introduction to the methods used to control products, processes, quality and output
3. understand basic operations problems and approaches for solving those problems
4. improve modeling skills with spreadsheets and simulations
What is Operations Management?
"... the systematic direction and control of the processes that transform inputs into finished goods and services. The inputs are transformed at operations into outputs."
In other words Operations Management deals with all activities involved with designing, producing and delivering a product.
Operations as a Transformation Process
Inputs '' Transformation '' Output
Where does it fit in an organization?
Operations is one functional area, supporting corporate strategy and exchanging information with the marketing, finance and human resources areas.
Operations handles inbound logistics, operations, outbound logistics and service as well as procurement and aspects of technology development
Operations Management is all about providing customers with products and services.
You survive by giving customers with what they want
' Every Product or Service is really a bundle of different attributes.
' Product, place, price, performance, quality, timing, service, etc.
- Customers are looking for a bundle of characteristics
- Total bundle provides the level of value customers deem appropriate
- Buying products with the attributes they want at the lowest price possible