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Welcome to

OPERATIONS MANAGEMENT -1

Credit:02

OPM 1 Term 2, B2015-17, Oct-Dec 2015

Introduction to Operations Management I

Prof. Kedar P. Joshi

Learning Objectives
• Identify the elements of operations and supply chain
management.
• Know the potential career opportunities in operations and
supply chain management.
• Recognize the major concepts that define the operations and
supply chain management field.

• Evaluate the efficiency of a firm.
OPM 1 Term 2, B2015-17, Oct-Dec 2015

Introduction to Operations Management I

Prof. Kedar P. Joshi

Processes. and Analytics • Operations and supply chain management involves – Product design – Purchasing – Manufacturing – Service operations – Logistics – Distribution • Success depends upon – Strategy – Processes to deliver products and services – Analytics to support the decisions needed to manage the firm OPM 1 Term 2. Joshi . Kedar P.Strategy. B2015-17. Oct-Dec 2015 Introduction to Operations Management I Prof.

What Is Operations and Supply Chain Management? • The design. Kedar P. Joshi . B2015-17. Oct-Dec 2015 Introduction to Operations Management I entire Prof. operation. and improvement of the systems that create and delivery the firm’s primary products and services • Operations and supply chain management (OSCM) is – A functional field of business – Concerned with the management of the production/delivery system OPM 1 Term 2.

Joshi .Operations and Supply Chain Processes Operations Manufacturing and service processes used to transform resources into products Internal Customer OPM 1 Term 2. B2015-17. Oct-Dec 2015 Supply Chain Processes that move information and material to and from the firm External Customer Introduction to Operations Management I Prof. Kedar P.

Process Steps for Men’s Nylon Supplex Parkas the nylon Supplex producer the Polartec producer OPM 1 Term 2. Oct-Dec 2015 the parka manufacturer Introduction to Operations Management I the catalog sales retailer Prof. B2015-17. Joshi . Kedar P.

B2015-17. Kedar P.Operations and Supply Chain Processes OPM 1 Term 2. Joshi . Oct-Dec 2015 Introduction to Operations Management I Prof.

B2015-17. coordinating the movement of goods and information. and/or defective products back from customers Introduction to Operations Management I Prof.Process Activities Planning • processes needed to operate an existing supply chain Sourcing • selection of suppliers that will deliver the goods and services needed to create the firm’s product OPM 1 Term 2. Joshi . Oct-Dec 2015 Making • producing the major product or service Delivering Returning • logistics processes such as selecting carriers. Kedar P. excess. and collecting payments from customers • receiving wornout.

Where are the OM Jobs? OPM 1 Term 2. Kedar P. Joshi . Oct-Dec 2015 Introduction to Operations Management I Prof. B2015-17.

Oct-Dec 2015 Introduction to Operations Management I Prof. Joshi . B2015-17.Historical Development of Operations and Supply Chain Management OPM 1 Term 2. Kedar P.

producers. Kedar P. Oct-Dec 2015 Managing customer touch points Raising awareness of OSCM as a competitive weapon Introduction to Operations Management I Sustainability and triple bottom line Prof. B2015-17. and distributors OPM 1 Term 2. Joshi .Current Issues in OSCM Coordinating relationships between members of SC Optimizing global network of suppliers.

GOODS OR SERVICES? OPM 1 Term 2. B2015-17. Kedar P. Joshi 12 . Oct-Dec 2015 Introduction to Operations Management I Prof.

Kedar P. Oct-Dec 2015 Introduction to Operations Management I Prof.Characteristics of Goods  Tangible product  Consistent product definition  Production usually separate from consumption  Can be inventoried  Low customer interaction OPM 1 Term 2. B2015-17. Joshi .

Joshi . Kedar P. Oct-Dec 2015 Introduction to Operations Management I Prof.Characteristics of Services  Intangible product  Produced and consumed at same time  Often unique  High customer interaction  Inconsistent product definition  Often knowledge-based  Frequently dispersed OPM 1 Term 2. B2015-17.

Kedar P. Joshi .Goods versus Services Goods Pure Goods Services Core Goods Tangible Less interaction with customers Often homogeneous Not perishable – can be inventoried OPM 1 Term 2. B2015-17. Oct-Dec 2015 Core Services Pure Services Intangible Interaction with customer required Inherently heterogeneous Perishable/time dependent Defined and evaluated as a package of features Introduction to Operations Management I Prof.

Kedar P. B2015-17. Joshi .com/node/21549956 OPM 1 Term 2. Oct-Dec 2015 Introduction to Operations Management I Prof.economist.China – Global Leader is Manufacturing 11th 5 yr plan Heavy manufacturing & high technology Light industry The end of cheap China: What do soaring Chinese wages mean for global manufacturing? Mar 10th 2012 | HONG KONG AND SHENZHEN Source: http://www.

html OPM 1 Term 2. manufacturing starts moving to India by Goutam Das Source: http://businesstoday. B2015-17. India Made In India*: As China begins to lose its competitive advantage.Manufacturing: China vs. Kedar P. Joshi . Oct-Dec 2015 Introduction to Operations Management I Prof.in/story/india-benefits-china-begins-to-lose-manufacturing-edge/1/203040.intoday.

Joshi .Make in India Havells Bosch Micromax Made In India*: As China begins to lose its competitive advantage.html OPM 1 Term 2. Oct-Dec 2015 Introduction to Operations Management I Prof.intoday. Kedar P. B2015-17.in/story/india-benefits-china-begins-to-lose-manufacturing-edge/1/203040. manufacturing starts moving to India by Goutam Das Source: http://businesstoday.

and Value Efficiency • Doing something at the lowest possible cost Effectiveness • Doing the right things to create the most value for your customer Value • The attractiveness of a product relative to its cost OPM 1 Term 2.Efficiency. Kedar P. B2015-17. Oct-Dec 2015 Introduction to Operations Management I Prof. Joshi . Effectiveness.

and Value • Getting passengers on a plane quickly can greatly affect an airline’s costs. Joshi . Oct-Dec 2015 Introduction to Operations Management I Prof. Kedar P. B2015-17. • Reverse pyramid OPM 1 Term 2.Efficiency. Effectiveness. it would need 40 more planes at a cost of $40 million each to run the same number of flights it does currently. • Southwest says that if its boarding times increased by 10 minutes per flight.

Joshi . the relative cost of providing a good or service is closely related to earnings growth • Management efficiency ratios – Labor productivity • Net income per employee • Revenue (or sales) per employee – Asset productivity OPM 1 Term 2. Oct-Dec 2015 Introduction to Operations Management I Prof. B2015-17.Efficiency and Wall Street • Comparison of firms is important to investors – From an operations and supply chain perspective. Kedar P.

Efficiency and Wall Street OPM 1 Term 2. Oct-Dec 2015 Introduction to Operations Management I Prof. B2015-17. Kedar P. Joshi .

Oct-Dec 2015 Introduction to Operations Management I Prof.Efficiency and Wall Street OPM 1 Term 2. Kedar P. B2015-17. Joshi .