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MBA, Semester 2 Operations Management Ms. Aarti Mehta Sharma

MBA, Semester 2 Operations Management Ms. Aarti Mehta Sharma. Module 1. Importance Scope. Why are they successful? Fast On-time deliveries Relatively low cost Technology in shipment tracking. Fed Ex.

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MBA, Semester 2 Operations Management Ms. Aarti Mehta Sharma

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  1. MBA, Semester 2Operations ManagementMs. Aarti Mehta Sharma

  2. Module 1 Importance Scope

  3. Why are they successful? Fast On-time deliveries Relatively low cost Technology in shipment tracking FedEx

  4. Is the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services Operations Management

  5. Operations research / Management Sciences / Industrial Engineering OM uses the above tools to take decisions diff from….

  6. A manager is … … someone who plans, acquires and manages resources needed to meet specific objectives. PLANS ACQUIRES MANAGES

  7. Organisation Chart

  8. OM’s Transformation Process

  9. Management of the conversion process which transforms inputs such as raw material and labour into outputs in the form of finished goods and services. Operations Management Inputs (materials, employees and/or customers) Transformation Process Outputs(Productsandservices)

  10. Transformation process at a Food Processor

  11. Transformation process at a Hospital

  12. To add value Increase product value at each stage Value added is the net increase between output product value and input material value Provide an efficient transformation Efficiency – perform activities well at lowest possible cost Transformational Value – as a competitive advantage

  13. Operations Examples Goods Producing Farming, mining, construction , manufacturing, power generation Storage/Transportation Warehousing, trucking, mail service, moving, taxis, buses, hotels, airlines Exchange Retailing, wholesaling, banking, renting, leasing, library, loans Entertainment Films, radio and television, concerts, recording Communication Newspapers, radio and television newscasts, telephone, satellites Types of Operations

  14. Services: Intangible product Product cannot be inventoried High customer contact Short response time Labor intensive Differences between Manufacturers and Service Organizations

  15. Manufacturers: Tangible product Product can be inventoried Low customer contact Longer response time Capital intensive Differences between Manufacturers and Service Organizations

  16. All use technology Both have quality, productivity, & response issues All must forecast demand Each will have capacity, layout, and location issues All have customers, suppliers, scheduling and staffing issues Similarities-Service/Manufacturers

  17. Goods vs. Services

  18. USA (Apr 2009)

  19. For long-run success companies must place much important on their operations The 1950-1960 era was the U.S. golden era where primary opportunities were marketing The 1970-1980 U.S. companies experienced a large decline in productivity growth – international firms began to challenge in many markets The 1970-1980 era saw U. S. firms lagging behind in methods and processes The resurgence of American business in the 1990’s capitalized on improved operations Why OM ?

  20. Scientific management - 1900s time line

  21. Competitive Priorities • Competitive advantage denotes a firm’s ability to achieve market and financial superiority over its competitors. • Competitive priorities represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.

  22. Based on … • Cost • Quality • Time • Flexibility • Innovation

  23. Competitive Priorities • Every organization is concerned with building and sustaining a competitive advantage in its markets (see BMW). • A strong competitive advantage is driven by customer needs and aligns the organization's resources with its business opportunities. • A strong competitive advantage is difficult to copy, often because of a firm’s culture, habits, or sunk costs.

  24. Time Line for Operations Strategies

  25. 1930s

  26. 1940s,50s and 60s

  27. 1970s

  28. 1980s

  29. 1990s

  30. E Commerce – Internet, Amazon, eBay, Yahoo ! Outsourcing and FLATTENING of the world 2000s

  31. abstract number, the status of production in the industrial sector for a given period of time as compared to a reference period of time. single representative figure to measure the general level of industrial activity in the economy. Short-term indicator of industrial growth till the actual results from Annual Survey of Industries (ASI) become available. Index Of Industrial Production

  32. ?

  33. Government for policy planning purposes Industrial Associations, Research Institutes and Academicians. Mining, Manufacturing and Electricity www.mospi.nic.in

  34. Define Competitive advantage Choose one of these : Dominos, ICICI Prudential, TVS Bike,VLCC, ITC, Wonder La,Amity,B - and list the main activities the operations manager must manage. What is each company’s competitive advantage ? What do Operations Managers do? • role demands • planning • decisions • coordination • systems

  35. Read “The Goal” - Eliyahu M. Goldratt “Jack Welch and the GE Way” - Robert Slater

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