Operations and Productions Management - the management of systems or processes that create goods and/or provide services
Operations - the part of a business organization that is responsible for producing goods or services
Goods â€“ physical items that include raw materials, parts, subassemblies, and final products
Services- are activities that provide some combination of time, location, form, or psychological value.
Supply Chain â€“ is the sequence of organizations â€“their facilities, functions and activities â€“that are involved in producing and delivering a product or service.
Three basic functions of a business organization:
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5. Quick Response
7. Inventory Management
8. Supply Chain Managament
10. Managers &Workers
Mission â€“ is the reason for its existence and found in the mission statement
Goals â€“ provides more detail and describe the scope of the mission
Strategies â€“ plans for achieving organizational goals
Tactics â€“ methods and actions used to accomplish strategies
Hierarchy of planning and decision making:
Environmental scanning â€“ is the monitoring of events and trends that present either threats or opportunities for the organization
* Economic conditions â€“ general health and direction of the economy
* Political conditions â€“ favorable and unfavorable attitudes towards business
* Legal environment â€“ antitrust laws, government regulations, etc.
* Technology â€“ rate at which the product innovations are occurring
* Competition â€“ number and strength of competitors, the basis of competition
* Markets â€“ size, location, brand loyalties, etc.
* Human resources â€“ skills and abilities of managers and workers
* Facilities and equipment â€“ capacities, location, age, cost to maintain
* Financial resources â€“ cash flow, funding, etc.
* Customers â€“ loyalty, existing relationships, etc.
* Technology â€“ existing technology, ability to integrate new technology
* Suppliers â€“ supplier relationships, dependability of suppliers, quality, flexibility, etc.
1. Link strategy directly to organizationâ€™s mission or vision statement
2. Assess SWOT and identify core competencies
3. Identify order winners and order qualifiers
4. Select one or two strategies
Quality-based strategies â€“ focuses on maintaining or improving the quality of an organizationâ€™s products or services
Time-based strategies â€“ focuses on reducing the time required to accomplish various activities
Time reduction can be done through the following:
* Planning time â€“ time needed to react to a competitive threat
* Product/Service design time â€“ time needed to develop and market new or redesigned products or services
* Processing time â€“ time needed to change producing one type of product or service to another
* Changeover time - time needed to change from producing one type of product or service to another.
* Delivery time â€“ time needed to fill orders
* Response time for complaints
Productivity â€“ a measure of the effective use of resources, usually expressed as the ration of output to input
Factors that affect productivity:
* Quality differences
* Use of the Internet
* Computer viruses
* Searching for lost or misplaced item
* Scrap rates
* New workers
* Short of information technology workers
* Labor turnover
* Design of...