Scribd
Upload
49 views3 pages

Opman

Operations Management involves designing and controlling business operations to produce goods and services, emphasizing customer value through efficient processes. Key concepts include efficiency, effectiveness, quality, productivity, innovation, and sustainability, with core areas such as process design, capacity planning, and supply chain management. Studying Operations Management enhances problem-solving and decision-making skills, increases career opportunities, and provides a better understanding of business functions.

Uploaded by

Rowena Padamada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
49 views3 pages

Opman

Operations Management involves designing and controlling business operations to produce goods and services, emphasizing customer value through efficient processes. Key concepts include efficiency, effectiveness, quality, productivity, innovation, and sustainability, with core areas such as process design, capacity planning, and supply chain management. Studying Operations Management enhances problem-solving and decision-making skills, increases career opportunities, and provides a better understanding of business functions.

Uploaded by

Rowena Padamada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

OPMAN INTRODUCTION

1. What is Operations Management?


Operations management focuses on designing and controlling the business operations
during the production of goods and services.
 In Simple Terms: It's about how businesses create the things they sell (products) or the
services they offer. Think of it as the "behind-the-scenes" work that makes a company
run smoothly.
 Heizer and Render: "The management of the processes that create value for customers
by transforming inputs into goods and services." This definition emphasizes the
customer-centric aspect of operations.

o Management: This refers to the act of controlling, directing, and organizing


resources to achieve specific goals. In this context, it's about overseeing and guiding
the operational activities of a business.
o processes: These are a series of actions or steps taken in a particular order to achieve
a specific outcome. In operations, these are the activities that transform inputs into
outputs.
o create: To bring something into existence; to produce or generate. Here, it signifies
the creation of value for customers.
o value: This is subjective and can encompass various aspects like:
o Utility: How useful or beneficial the product or service is to the customer.
o Quality: The level of excellence and performance of the product or service.
o Customer satisfaction: The degree to which the product or service meets
customer expectations and needs.
o Competitive advantage: What makes the product or service stand out from
competitors.
o customers: The individuals or organizations that purchase or use the goods or
services produced.
o transforming: To change the form, appearance, or nature of something. In
operations, this involves converting raw materials, labor, and technology into finished
products or services.
o inputs: The resources that are used in the production process. These can include:
o Raw materials: The basic materials used to make products.
o Labor: The human effort involved in production and service delivery.
o Technology: Machinery, equipment, software, and other tools used in the
production process.
o goods: Tangible products that can be seen, touched, and physically possessed.
o services: Intangible offerings that provide value to customers without the transfer of
ownership. Examples include healthcare, education, consulting, and transportation.
o In Summary:
o This definition emphasizes that Operations Management is not just about producing
things; it's about strategically managing the entire process to create value for the
customer. It focuses on how businesses effectively convert inputs into outputs that
meet customer needs and expectations, ultimately contributing to the success of the
organization.

2. Key Concepts
 Process: A sequence of activities that transforms inputs into outputs.
o Examples: Making a pizza, processing a loan application, delivering a package.
 Efficiency: Doing things with the least amount of waste (time, materials, money).
 Effectiveness: Achieving the desired goals and meeting customer needs.
 Quality: Meeting or exceeding customer expectations in terms of performance,
reliability, and features.
 Productivity: The ratio of output to input (how much you produce with the resources
you have).
 Innovation: Finding new and better ways to do things, improve products, and create
new services.
 Sustainability: Operating in a way that minimizes environmental impact and conserves
resources for future generations.
3. Core Areas of Operations Management
 Process Design: Planning and creating the steps involved in producing goods or services.
 Capacity Planning: Determining the appropriate level of resources (people, equipment,
facilities) to meet demand.
 Inventory Management: Controlling the flow of materials and finished goods to ensure
they are available when needed.
 Supply Chain Management: Managing the flow of goods and information from suppliers
to customers.
 Quality Control: Ensuring that products and services meet established standards.
 Lean Operations: A philosophy that focuses on eliminating waste and improving
efficiency throughout the entire process.
 Project Management: Planning, organizing, and controlling projects to meet specific
goals and deadlines.
5. Benefits of Studying Operations Management
 Improved Problem-Solving Skills: You'll learn to analyze processes, identify bottlenecks,
and develop solutions.
 Enhanced Decision-Making Abilities: You'll gain a deeper understanding of how to make
informed choices that impact the entire organization.
 Increased Career Opportunities: Operations Management skills are highly valued in a
variety of industries.
 Better Understanding of the World Around You: You'll gain a deeper appreciation for
how things are made and how businesses function.

You might also like