Operations and Productivity

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Organizing to Produce Goods and Services

Essential function:
• Marketing – generates demand
• Production/operations – creates the product
• Finance/accounting – tracks how well the organization is doing, pays bills, collects
the money

Basic Management Functions (management process):

• Planning: goals, actions, strategies, resources to achieve the goals.
• Organizing: establishing worker relationships allows workers to work together to
achieve their organizational goals => organizational structure, capital, manpower,
materials
• Staffing: recruiting and selecting employees for positions within the company
• Leading: energizing employees, inspiring and motivating people using vision,
influence, persuasion, and effective communication skills
• Controlling: evaluate how well you are achieving your goals, improving performance,
taking actions

Ten Critical Decisions:

• Design of goods and services
• Managing quality
• Process and capacity design
• Location strategy
• Layout strategy
• Human resources and job design
• Supply chain management
• Inventory management
• Scheduling
• Maintenance (bảo trì)

New Challenges in OM

• Global focus
• Just-in-time performance
• Supply chain partnering
• Rapid product development
• Mass customization
• Empowered employees
• Environmentally sensitive
production
• Ethics

Characteristics of Goods
• Tangible product
• Consistent product definition
• Production usually separate from consumption
• Can be inventoried
• Low customer interaction
Characteristics of Service
• Intangible product
• Produced and consumed at same time
• Often unique
• High customer interaction
• Inconsistent product definition

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 • Inconsistent product definition
• Often knowledge-based
• Frequently dispersed

New Trends in OM

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