First Lecture – Operations Management

Operations - activities that would transform inputs into outputs.

What is Management for Students? Here are their perceptions:

 Proper handling of situations
 Planning activities
 Performing a certain task to achieve a mission
 How a manager manages his people
 Goals of a manager
 Manner of managing
 Manage a company

What is Operations Management (OM)?

Production is the creation of goods and services. OM is the set of activities that
creates value in the form of goods and services by transforming inputs into outputs.

Raw materials

Capital product/good or services

Labor

Management = handling

Organizational Charts

Commercial Bank
 Operations
 Finance
 Marketing

Operations
 Teller scheduling
 Check clearing
 Collection

Airline
 Operations
 Finance/Accounting
 Marketing

Manufacturing
 Operations
 Finance/Accounting
 Marketing

Why study OM?

OM – 3 major functions of any organization.
  Want (and need) to know how goods and services
 Want to understand what managers do
 Such a costly part of an organization

What Operations Managers do?

Basic Management Functions?
< Planning
< Leading
< Organizing
< Controlling

Where are OM jobs?

Plant Managers
Quality Managers
Process Improvement Consultant

Significant Events in OM?

Cost focus
Quality focus
Customization focus