DCU: Dr PJ Byrne MT561 Slide: 1. Operations Management Managerial Issues. Shift in balance of power to consumers

Transcription

1 Operations Management Week 1 Introduction MT561 DCU: Dr PJ Byrne MT561 Slide: 1 Operations Management Managerial Issues Shift in balance of power to consumers Globalization of business and markets E-commerce Achieving higher levels of productivity Creating higher quality products Delivering better customer service Achieving shorter delivery times Reducing labor and material costs DCU: Dr PJ Byrne MT561 Slide: 2 1

2 DCU: Dr PJ Byrne MT561 Slide: 3 Examples Irish (or any) International Rugby Team Premiership soccer team Why do they change managers so often? Apple manufacturing Apple services University undergraduate programmes University research Shop clothes, games, supermarket DCU: Dr PJ Byrne MT561 Slide: 4 2

3 General System DCU: Dr PJ Byrne MT561 Slide: 5 The three basic functions of enterprises DCU: Dr PJ Byrne MT561 Slide: 6 3

4 Operations management defined Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services. DCU: Dr PJ Byrne MT561 Slide: 7 What Is Operations Management? Operations Management Management of the conversion process which transforms inputs such as raw material and labour into outputs in the form of finished goods and services. Inputs (customers and/or materials) Transformation Process (components) Outputs (goods and services) DCU: Dr PJ Byrne MT561 Slide: 8 4

5 Operations are everywhere The best way to start understanding the nature of Operations is to look around you. Everything you can see around you has been producedby an operation. Every service you consumed today (radio station, bus service, lecture, etc.) has also been producedby an operation. Consider the ingredients of your breakfast this morning they passed through a number of different processing steps between the farmer and your table... Operations Managers createeverything you buy, sit on, wear, eat and throw away. DCU: Dr PJ Byrne MT561 Slide: 9 The Transformation Process within OM DCU: Dr PJ Byrne MT561 Slide: 10 5

6 The Ever-Changing World of OM Increased Global Competition Transformation into a global economy Pressure to excel on multiple competitive dimensions Increased emphasis on logistics Advances in Technology Information technology (IT) Internet and commerce (B2B) Automation and robotics DCU: Dr PJ Byrne MT561 Slide: 11 DCU: Dr PJ Byrne MT561 Slide: 12 6

7 International Car Manufacturing DCU: Dr PJ Byrne MT561 Slide: 13 Complexities of International Operations Management International Decisions Resources Location Logistics DCU: Dr PJ Byrne MT561 Slide: 14 7

8 Most Products Are a Bundle of Goods and Services DCU: Dr PJ Byrne MT561 Slide: 15 Characteristics of Goods Tangible product Consistent product definition Production usually separate from consumption Can be inventoried Low customer interaction DCU: Dr PJ Byrne MT561 Slide: 16 8

9 Characteristics of Service Intangible product Produced and consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed DCU: Dr PJ Byrne MT561 Slide: 17 Goods/Services Most organizations produce a mix of goods and services Operations Management needs to be studied in relation to both. It is also NOT always obvious how to categorise elements as either goods or services DCU: Dr PJ Byrne MT561 Slide: 18 9

10 Service Operations DCU: Dr PJ Byrne MT561 Slide: 19 Operations management is changing as the business environment is changing: Business environment changes. Increased cost-based competition Higher quality expectations Demands for better service More choice and variety Rapidly developing technologies Frequent new product/service introduction Increased ethical sensitivity Environmental impacts are more transparent More legal regulation Greater security awareness DCU: Dr PJ Byrne MT561 Slide: 20 10