Note: For multifactor and partial measures it is not necessary to use total output as numerator. determining how labor and equipment are organized. Inconsistency – Services tend to be unique. Without a tangible good to ship, handle and produce, operational managers are instead focused on the execution of an activity to fill a consumer need. establishing quality assurance procedures. Then they came up with an innovative idea for Toshiba to provide better service to its customers. Operations Management: Blueprint for a commercial operations management solution. Operations Management - Introduction to Operations Management-:- Introduction to Operations Management-:- Historical Evolution of Operations Management-:- Operations performance objectives - Introduction to Operations Management-:- Role of Operations Management-:- Roles and Responsibility of an Operations Manager The pro forma uses information from past and current financial statements in an effort to predict future events such as sales, and capital investments. It does not matter whether the organization is a for-profit company, a non-profit organization (religious organizations, hospitals, etc. Explain the role of operations management. Identify the key differences between services and other types of goods, and recognize the operational implications of these differences. (adsbygoogle = window.adsbygoogle || []).push({}); Operations management is the management of processes that transform inputs into goods and services that add value for the customer. Most Toshiba customers think that Toshiba is doing a great job of repairing their computers, when in fact Toshiba never touches the computers! Strategic capacity planning for products and services. They occur, or they do not occur. Improving overall quality through measuring consumer satisfaction, planning facilities for optimal use of space, and effective scheduling are a few examples of considerations service operators consider. Magic Tape is used for everyday taping applications, but it offers attractive features that most other tapes do not, including: For several decades, 3M has enjoyed a substantial profit margin on its Magic Tape product because 3M engineers make the manufacturing equipment and design the manufacturing processes that produce Magic Tape. Service-Goods Continuum: This simple line graph shows industries that are nearly 100% service-related at the top and industries that are nearly 100% product-related at the bottom. utdallas.edu/~metin 4 Operations Management Operations management: The management of the efficient transformation of inputs into outputs to effectively satisfy customers. As the ‘5 I’s of Services’ indicate, most services tend to be completely unique. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. In other words, 3M enjoys a commanding competitive advantage by controlling the transformation processes that turn raw material inputs into the high value-added Magic Tape product. Maximizing output through planning properly can minimize opportunity costs and maximize revenue, and plays an integral role in operational management of services. UPS hired, trained, and certified its own employees to repair Toshiba laptop computers. If you wish to opt out, please close your SlideShare account. LEC # TOPICS; 1: Introduction Operations Overview : 2: Project Management New Product Development and 3-DCE : 3: Operations Strategy Operations Analysis : 4: Inventory Management : 5: Process Technology : 6: Process Technology (cont.) Take a doctor’s office. The goal of operations management is to maximize efficiency while producing goods and services that effectively fulfill customer needs. Following these ratings, operational specialists must consider the comments received and work to find a way to integrate this feedback into future services. Operations is one of the three strategic functions of any organization. While the managers are involved in planning, organizing and controlling, operations managers have the direct responsibility of getting the … The history of operations management is portrayed. July 3, 2012. Intangibility – Services cannot be touched, shipped, handled, or looked at. As services behave somewhat differently than tangible products, operations managers must take into account different considerations when optimizing their operational strategy. ). Controlling the transformation process makes it extremely difficult for competitors to produce tape of the same quality as Magic Tape, allowing 3M to reap significant profits from this superior product. If you continue browsing the site, you agree to the use of cookies on this website. APIdays Paris 2019 - Innovation @ scale, APIs as Digital Factories' New Machi... No public clipboards found for this slide, Lecture note no. ), or a government agency; all organizations must strive to maximize the quality of their transformation processes to meet customer needs. Figure 1 summarizes the transformation process. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Operations management transforms inputs (labor, capital, equipment, land, buildings, materials and information) into outputs (goods and services) that provide added value to customers. Example of a typical transformation process.