Managing Operations ; Management Global Ed

Managing Operations Module

1. Management Fifteenth Edition, Global Edition Chapter 18B Managing Operations Module Copyright © 2021 Pearson Education Ltd.

2. The Role of Operations Management Operations management : the transformation process that converts resources into finished goods and services

3. Exhibit M O.1 The Operations System Exhibit M O.1 portrays the transformation process that converts resources into finished goods and services in a simplified fashion.

4. Services and Manufacturing Manufacturing organizations : organizations that produce physical goods Service organizations : organizations that produce nonphysical products in the form of services

5. Managing Productivity For countries, high productivity can lead to economic growth and development. For individual organizations, increased productivity gives them a more competitive cost structure and the ability to offer more competitive prices.

6. Strategic Role of Operations Management Today, successful organizations recognize the crucial role that operations management plays as part of the overall organizational strategy to establish and maintain global leadership.

7. What is Value Chain Management? (1 of 2) Value : the performance characteristics, features, and attributes, and any other aspects of goods and services for which customers are willing to give up resources Value chain : the entire series of organizational work activities that add value at each step from raw materials to finished product

8. What is Value Chain Management? (2 of 2) Value chain management : the process of managing the sequence of activities and information along the entire value chain

9. Goal of Value Chain Management The goal of value chain management is to create a value chain strategy that meets and exceeds customers’ needs and desires and allows for full and seamless integration among all members of the chain.

10. Benefits of Value Chain Management Four primary benefits: Improved procurement Improved logistics Improved product development Enhanced customer order management

11. Value Chain Strategy Six main requirements of a successful value chain strategy: Coordination and collaboration Technology investment Organizational processes Leadership Employees Organizational culture and attitudes

12. Exhibit M O.2 Value Chain Strategy Requirements Exhibit M O.2 shows the six main requirements of a successful value chain strategy.

13. Value Change Management and Impact on the Organization Organizational processes : the ways that organizational work is done. Can change dramatically Leadership: Need a strong commitment to implement Employees: Need to be committed to ongoing training and be flexible Organizational Culture and Attitudes: Must be supportive to succeed

14. Technology’s Role in Operations Management Smart companies are looking at ways to harness technology to improve operations management.

15. The Robots are Coming! Robots will continue to replace humans in a variety of jobs They are currently very common on factory floors Jobs being replaced tend to be mind-numbing or physically tasking

16. Quality Management Quality : the ability of a product or service to reliably do what it’s supposed to do and to satisfy customer expectations Quality initiatives: Planning for quality Organizing and leading for quality Controlling for quality

17. Quality Goals ISO 9001 : a series of international quality management standards that set uniform guidelines for processes to ensure products conform to customer requirements Six Sigma : a quality program designed to reduce defects and help lower costs, save time, and improve customer satisfaction

18. Mass Customization and Lean Organization Mass customization : providing customers with a product when, where, and how they want it Lean organization : an organization that understands what customers want, identifies customer value by analyzing all activities required to produce products, and then optimizes the entire process from the customer’s perspective