Dom 102: Principles of Operations Management: Transformation of Inputs Into Outputs. (Slack 2001) | PDF | Marketing | Operations Management
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Dom 102: Principles of Operations Management: Transformation of Inputs Into Outputs. (Slack 2001)

The document provides an introduction to operations management (OM). It defines OM as the set of activities that transform inputs into outputs through the creation of goods and services. OM is responsible for ensuring processes run efficiently and effectively to deliver value for customers through high quality, low cost outputs. Key aspects of OM include forecasting, capacity planning, scheduling, quality assurance, and inventory management. The document contrasts the differences between manufacturing and service operations, noting that while the approach is often similar, manufacturing deals with tangible goods while services involve acts for customers.

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Nura Basmer
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83 views

Dom 102: Principles of Operations Management: Transformation of Inputs Into Outputs. (Slack 2001)

The document provides an introduction to operations management (OM). It defines OM as the set of activities that transform inputs into outputs through the creation of goods and services. OM is responsible for ensuring processes run efficiently and effectively to deliver value for customers through high quality, low cost outputs. Key aspects of OM include forecasting, capacity planning, scheduling, quality assurance, and inventory management. The document contrasts the differences between manufacturing and service operations, noting that while the approach is often similar, manufacturing deals with tangible goods while services involve acts for customers.

Uploaded by

Nura Basmer
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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DOM 102: PRINCIPLES OF

OPERATIONS MANAGEMENT
INTRODUCTION
 If you have interest in becoming a great manager, OM is important
 At the most fundamental level , OM is about getting the day to day
work done quickly, efficiently without errors and at low cost.
 In addition to making processes work right, an essential feature of
OM is helping companies create dramatic improvement in
customer service and reduction in cost.
 OM equips one with concepts and tools employed by companies as
they craft efficient and effective operations.

*Efficiency means doing sth at the lowest possible cost, the goal of an
efficient process is to produce a good or provide a service by using the
smallest input of resources.
*Effectiveness means doing the right things to create the most value for
the company.

OM DEFINITION
 OM is the set of activities that create goods or services through the
transformation of inputs into outputs. (Slack 2001)
 OM is the management of processes that creates goods or provides
services. (Stevenson 2008)
 OM is defined as the design, operation and improvement of the
systems that create and delivers the firm’s primary products and
services. (Chase, Jacobs and Aquilano 2010)
OM in the organization chart.
Business has 3 functional areas:
1. Finance
2. Marketing
3. Operations

It doesn’t matter what type of business. Whether a hospital, a car wash, a retail
store, a salon etc
Finance is responsible for securing financial resources at favourable prices and
allocating these resources throughout the organization as well as budgeting,
analyzing investment proposals and providing funds for operations.
Marketing is responsible for accessing consumer’s wants and needs, and selling &
promoting the organization’s goods and services.
Operations is primarily responsible for producing goods or providing services
offered by the organization. To put this into perspective, if a business were a car,
operations would be its engine. And just as the engine is the core of what a car
does, in a business organization, operations is the core of what an organization
does.
GOODS AND SERVICES.
A firm is either involved in production of goods or delivery of services.

Production of goods,.
Eg a car… it is a tangible output.
Delivery of a service,
On the other hand, implies an act. Eg insurance services, auditing
services, repair of a vehicle, treatment by a physician, hair dressing etc.

Service job categories include:


* Government – county govt works
*Wholesale / retail – clothing, food, appliances, stationery etc
*Financial services - insurance
*Healthcare – services provided by doctors, dentists, nurses etc
*Personal services – laundry, dry cleaning, gardening, hair & beauty
services etc
*Business services – data processing, employment of agencies, delivery
*Education – services provided in colleges, school, universities etc

MANUFACTURING AND SERVICE.


- Manufacturing and service are often different in what is done but
similar in terms of how it is done.
- Manufacturing and service organizations differ because manufacturing
is good oriented and service is act oriented.
SIMILARITIES:
1. All use technology
2. Both have quality and productivity response issues.
3. Both have a where a customer will be interested of the quality he
will receive from them
4. Each will have capacity, layout and location issues.
5. All have customers and suppliers
6. All have scheduling and staffing issues

DIFFERENCE:
1. Customer contact
Services involve a much higher degree of customer contact than
manufacturing. Performance of the service often occurs at the point of
consumption. Eg surgery requires both the surgeon and the patient to be
present. The degree of customer contact is higher for service providing firms
than of good providing firms.
2. Uniformity of input.
Service operations are subject to greater variability of input than typical
production of goods, Eg.. each patient or car repair presents a specific
problem that must be diagnosed and remedied.
3. Labor content of jobs.
Many services are more labor intensive than production of goods.
4. Uniformity of output.
Because high mechanization generates products with low variability,
manufacturing tends to be smooth and efficient. In service operations output
is more variable. Though there are exceptions.. eg atm machines
5. Measurement of productivity.
This is mostly referred in production of goods due to high …… uniformity
of most produced goods. It is difficult to measure a service, EG odock is
better than Hamza etc because each lecturer is different from the other.
6. Production and delivery.
In many instances, customers receive the service as it is performed. Eg a
haircut, a lecture etc. It is not almost the case in most goods production.
7. Quality assurance.
This is more challenging in service operations than in goods production. Eg
if you produce goods and find that its faulty, you have time to rectify. In a
service producing firm theres no time because customer is consuming the
service at that same time as its offered.
8. Amount of inventory.
Good production system usually has more inventory on hand eg (raw
materials, semi finished gods, finished goods) than service firms.

GOODS – SERVICE CONTINUUM.

Goods and services often occur jointly. Eg having the oil changed in your
car is a service but the oil delivered is a good. The goods service
combination is a continuum.
It can range from primarily goods, with little service to primarily service
with few goods.

THE SCOPE OF OM
Om includes:
Forecasting
Capacity planning
scheduling
managing inventory
assuring quality
motivating employees
deciding where to locate facilities and many more.

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