MNGT.

360 Advanced Operations

Management

The Future of
Operations
Management

Richard A. Peñalba
PhD in Management
Topic Outline

• Operations Management at a glance

• History of Operations Management
Historical Milestones
• Today’s OM Environment
• The Future of Operations Management
Industry 4.0
Operations Management at a
Glance

Operations Strategy
Product Design
Process Selection
Supply Chain Management Location Analysis

Quality Management Capacity Planning

Facility Layout
Forecasting
Job Design/Work Environment
Inventory Management
Scheduling
History of Operations Management
History of Operations Management
Today’s OM Environment

• LEAN SYSTEM
Lean systems take a total system approach to
creating an efficient operation and pull
together best practice concepts, including just-
in-time (JIT), total quality management (TQM),
continuous improvement, resource planning,
and supply chain management (SCM).
ERP – Enterprise Resource Planning
CRM – Customer Relations Management
Cross-functional Decision Making
The Future of Operations
Management
• Video Link:
• https://www.youtube.com/watch?v=dDjRW3twMoQ
• In some industries, operations may cease to be delivered by
humans.
• Technology is advancing at such a rate that cognitive tools
can now make faster and often better decisions than humans.
• New technologies are providing businesses with the
opportunity to reimagine what they deliver and how they
deliver it.
• Collaboration, both internally with existing teams and
externally building alliances and partnerships, is essential,
with new players moving faster than ever before.
• All this change is occurring in front of a backdrop of global and
political uncertainty – both risk and regulation cannot be
ignored.
The Industry 4.0
Organization 4.0 and Leadership 4.0

Few digital transformations can succeed without

putting people at the center. Four factors provide
crucial support.

• Governance
• Top-Management Commitment
• Digital Capability Acquisition
• New ways of Working
Industrial Automation
Industrial Automation
• Video Link:
• https://www.youtube.com/watch?v=1Eg5QYFLOGs
Summary
1. The definition of operations management is simple:
- Creating value for consumers by producing and improving different
processes. The main aspect of value can be a matter of reducing defects
(through six sigma) or focusing on the customer (through service
operations).
2. Big Data Analytics
3. Find the balance between humans and technology.
4. Technological Advancements: Additive Engineering (3D Printing), IoT,
Blockchain, Advanced Robotics, AI.
5. Industry 4.0
“The key is not when nor how to use
technology, but how you define what
you DO.

How do you prepare people for a new

reality in the workforce?

As we shift in how we live, it will create

opportunities we can’t comprehend
yet.”
-Dr. Kannan