Operations Management Department of Managerial Sciences Georgia State University

Operations Management….WHAT? The design and operation of processes & systems aimed at providing competitive goods and services to the marketplace… Transformation process of converting inputs… materials, labor, and capital into outputs… goods and services… Series of activities along a value chain extending from supplier to customer… Responsible for the core competencies that a company derives its competitive advantage…

Operations Management: The Transformation Process  Physical…manufacturing operations  Locational…logistics and warehousing operations  Exchange…retail operations  Physiological…health care  Psychological…entertainment  Informational…communications

The Operations Function…. Operations Finance/Accounting Human Resources Marketing Suppliers Production and Inventory data Capital budgeting requests Capacity expansion and Technology plans Budgets Cost analysis Capital investments Stockholder requirements Orders for materials Production and delivery Schedules Quality Requirements Design/ Performance specs Material availability Quality data Delivery schedules Designs Product/Service Availability Lead-time estimates Status of order Delivery schedules Sales forecasts Customer orders Customer feedback Promotions Personnel needs Skill sets Performance evaluations Job design/work measurement Hiring/firing Training Legal requirements Union contract negotiations

Organizational Learning And Operational Effectiveness… Strive to be different….your market value depends on it. How, you ask!  By performing similar activities better than your rivals perform them.  Responsibility: Operations Management Operations Management Drives…

New set of performance objectives to ensure we’re performing our activities/processes better…than the competition…  Flexibility  Speed  Dependability  Quality  Cost Operational Effectiveness…

Flexibility:  Product & service flexibility  Mix flexibility  Volume flexibility  Delivery flexibility Operational Effectiveness…

Speed:  New product launch  Faster throughput times  Less queuing and/or inventory  Less overheads Operational Effectiveness…

Dependability:  How reliable are we when we make a commitment to our best customers?  Delivery performance  Paper work accuracy  Inventory management  Ease of doing business  Ability to react to a change Operational Effectiveness…

Quality:  Design quality: processes  Conformance quality: product  More internal reliability  Lower processing costs  Less waste and rework Operational Effectiveness…

Cost:  Productivity; outputs vs. inputs  Productive processes  Average Unit Cost  Higher profits Operational Effectiveness…

 Enterprise Integration/ Supply Chain Management  Product Design & Development  Material & Resource Planning  Total Quality Management  Facility Location & Layout  Inventory Management  Project Management  Forecasting Models  Capacity Decisions  Process Selection  Just-In-Time  Scheduling Operations Management Tools:

Organizational Profiles: Environment, Relationships, and Challenges Baldrige Criteria for Performance Excellence 1 Leadership 2 Strategic Planning 3 Customer & Market Focus 5 Human Resources Focus 6 Process Management 4 Information & Analysis 7 Business Results