CHAPTER 8

MANAGING THE OPERATIONS FUNCTION

OPERATION MANAGEMENT
 delivering products and services to customers to meet
or surpass their expectations .

 it is designing, developing, and executing the

Enterprise Delivery System(EDS)
 TABLE 8.1. ENTERPRISE DELIVERY SYSTEM AND THE QDP

Enterprise Delivery System and the Customer, Market, and Financial Outcomes
INPUT THROUGHPU OUTPUT FINAL OUTCOMES
T DELIVERY
TO
CUSTOMERS
Resources Transformatio Products Marketing Customer
Mobilized n Process and Customer Expectations
Goods made Servicing  Quality
 Money Conversion of or Services  Delivery
 Men Input into rendered Marketing  Price
 Machines Output Program Market Expectations
 Materials
 Methods Service Level  Revenues/Sales
 Managemen Experience  Market Share
 Market Reach
t
Finance Expectations

 Profits
 Return on
Investment
THE NINE CRITICAL SUB-
PROCESSES OR SUB-SYSTEM
IN THE TRANSFORMATION
PROCESS
Technology Application and Utilization
 The enterprise managers and technicians must
understand how the technology works and how it
should be properly utilized.
Layouting
 the operating work flow must translate into an
appropriately-designed and executed physical layout
of the factory or service shop

THE LAYOUT SHOULD FOLLOW FOUR PRINCIPLES;

1. The physical layout must allow the goods or the
customers being processed to go from one step to
another with
Operating Work Flow
TWO GUIDING PRINCIPLES SHOULD DICTATE THE
OWF:

1. The OWF must be very efficient in terms of time,

movement, and utilization of resources.
2. The OWF must be balanced capacit-wise.
THE LAYOUT SHOULD FOLLOW FOUR
PRINCIPLES:
1. The physical layout must allow the goods or the
customers being processed to go from one step to
another with very little distance and the time spent
between steps.
2. There should be minimal or no crisscrossing of
goods or customers within the physical space.
3. The layout should capture the physical and
psychological atmosphere desired.
4. From the management perspective, the layout must
be easy to see, follow, monitor, and control.