Kumpulan Materi Kuliah

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The Nature of
Operations

Management Operational
 McDonald’s Corp
● Facing increased competition
● Smarter and more demanding customers
● Less brand loyal
● Switched to hamburger bun that does not
require toasting.
● Customers prefer taste of new bun
● Saves time and money
Olympic Flame

● 10,000 runners
● 15,000 miles through 42 states in 84 days
● Two years of planning
● Must plan for no-show runners and rush
hour traffic
● Cost of this operation in the neighborhood
of $20 million
Kmart Versus Wal-Mart
● Both chains started in 1962
● In 1987, Kmart had 2,223 stores to Wal-
Mart’s 1,198.
● Kmart’s sales were $25.63 billion to Wal-
Mart’s $15.96 billion
● By 1991, Wal-Mart’s sales exceeded
Kmarts
Kmart Versus Wal-Mart
continued
● In year ending January 1996, Wal-Mart’s sales
were $93.6 billion to Kmart’s $34.6 billion.
● During this time Kmart emphasized marketing
and merchandising (such as national TV ad
campaigns).
● Wal-Mart was investing millions in its
operations to lower cost.
Kmart Versus Wal-Mart
continued
● Wal-Mart developed sophisticated
distribution system that integrated its
computer system with its distribution
system.
● Kmart’s employees lacked skills needed
to plan and control inventory.
Diversity and Importance of
Operations
● Improvements in operations can simultaneously
lower costs and improve customer satisfaction.
● Improving operations often dependent on
advances in technology.
● Can obtain competitive advantage by improving
operations.
● Diversity of operations
Operations
● Heart of every organization
● Operations are the tasks that create
value
The Production System
Systems Perspective
● Inputs
● Transformation System
● Alter
● Transport
● Store
● Inspect
● Outputs
● Environment
Characteristics of
Products and Services
● Products
● Tangible
● Minimal customer
contact
● Minimal customer
participation
● Delayed consumption
● Equipment intensive
● Quality easily measured
● Services
● Intangible
● Extensive customer
contact
● Extensive customer
participation
● Immediate consumption
● Labor intensive
● Quality difficult to
measure
“Facilitating Good” Concept
● Often confusion in trying to classify organization
as manufacturer or service
● Facilitating good concept avoids this ambiguity
● All organizations defined as service
● The tangible part of the service is defined as
facilitating good
● Pure services
The Range from Services to
Products
Classification and Evolution
of Economic Offerings
 Comparison of Alternative
Economic Offerings
Economic
Offering Commodities Goods Services Experiences

Value added by Extracting Producing Delivering Staging

Form of output Fungible Tangible Intangible Memorable

Key
Natural Standardized Customized Personalized
characteristics
Buyer Market User Client Guest
Operations Activities
● Strategy ● Inventory
● Output Planning Management
● Capacity Planning ● Materials
● Facility Location Requirements
Planning
● Facility Layout
● Scheduling
● Aggregate Planning
● Quality Control
Functional View
of Organizations
● Three core functions ● Other important
● Operations functional activities
● Marketing ● Accounting
● Finance ● Human resource
management
● Information systems
● Engineering
Process View of
Organizations

An Evolution
Traditional Functional
Organization
Value-Chain Approach