INTRO TO OM PART 1 AMAT 167

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1 INTRO TO OM PART 1 AMAT 167

2 OM Three core functions of an organization: product/service development operations marketing Suppport functions of an org: accounting and finance human resources technical and information systems

3 OM Operations: production and delivery of products and/or services. includes sourcing products and services from suppliers and transporting products and services to customers Operations management: managing the processes and the resources which produce and deliver products and services.

4

5

6 INPUT TRANSFORMATION OUTPUT (I-T-O) PROCESS

7 T Y P O L O G Y

8 HIERARCHY OF OPERATIONS

9 HIERARCHY OF OPERATIONS

10 HIERARCHY OF OPERATIONS

11 HIERARCHY OF OPERATIONS

12 STAKEHOLDERS

13 CHALLENGE organizations require INNOVATION from operations managers

14 INTRO TO OM PART 2 AMAT 167

15 THE PIE OF MANAGEMENT

16 Goals dictate the Key Performance Indicators (KPIs)

17 S T R A T E G O S

18 BASIC PERFORMANCE OBJECTIVES FOR OPERATIONS Quality Advantage Speed Advantage Dependability Advantage Flexibility Advantage Cost Advantage These objectives affects cost and profit

19 EXAMPLE

20 MEASURES

21 MEASURES A health-check clinic has five employees and services 200 patients per week. Each employee works 35 hours per week. The clinic s total wage bill is PhP 234,000 and its total overhead expenses are PhP 120,000 per week. Labor productivity = = 40 Patients/Employee/Week

22 MEASURES A health-check clinic has five employees and services 200 patients per week. Each employee works 35 hours per week. The clinic s total wage bill is PhP 234,000 and its total overhead expenses are PhP 120,000 per week. Labor productivity = 200 5(35) 1.14 Patients/Labor hour

23 MEASURES A health-check clinic has five employees and services 200 patients per week. Each employee works 35 hours per week. The clinic s total wage bill is PhP 234,000 and its total overhead expenses are PhP 120,000 per week. Multi factor productivity 200 = Patients/Thousand pesos approx one patient per 2k pesos

24 MEASURES How to improve productivity?

25 MEASURES Relation to efficiency Efficiency = = useful output total input total output defective output total input Measures how much input is conserved in a process

26 THERE IS NO SUCH THING AS A FREE LUNCH Benefit Cost efficiency

27 THERE IS NO SUCH THING AS A FREE LUNCH Benefit Benefit Cost efficiency Cost efficiency

28 OTHER IDEAS FOR INCREASING COMPETITIVENESS

29 P&C IN OM AMAT 167

30 PLANNING AND CONTROL IN OM provide the systems, procedures and decisions which reconcile supply (what the operation s resources can deliver) and demand (what market requires).

31 PLANNING AND CONTROL IN OM Planning concerns what should happen in the future Control copes with changes (intervention)

32

33 RESPONDING TO DEMAND D: length of time customers have to wait between asking for the product or service and receiving it P: the total throughput time

34 P & C ACTIVITIES

35 TO KNOW MORE ABOUT OM, YOU CAN READ sixth edition OPERATIONS MANAGEMENT Nigel Slack Stuart Chambers Robert Johnston ACCESS CODE INSIDE unlock valuable online learning resources

36 Unless otherwise stated, the figures in the slides are from Slack N., Chambers S. & Johnston R Operations Management, 6th ed. Essex: Financial Times Prentice Hall.

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