Journal
yufeng33
OM5-1.pptxCopyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM
Goods, Services, and Operations Management
1
COLLIER/EVANS
5
1
Explain the concept and importance of operations management
Describe what operations managers do
Explain the differences between goods and services
LEARNING OUTCOMES
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OM5 | CH1
2
Describe a customer benefit package
Explain the role of processes in OM and identify three general types of processes
Summarize the historical development of OM
Describe current challenges facing OM
LEARNING OUTCOMES
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
3
Operations Management
Science and art of ensuring that goods and services are created and delivered successfully to customers
Design of goods, services, and the processes that create them
Day-to-day management of those processes
Continual improvement of these goods, services, and processes
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
4
Operations Management
Issues at the core of operations management
Efficiency
Cost
Quality
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
5
Key Activities of Operations Manager
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
6
Forecasting
Supply chain management
Facility layout and design
Technology section
Quality management
Purchasing
Resource and capacity management
Process design
Job design
Service encounter design
Scheduling
Sustainability
Understanding Goods
Good: Physical product that a person can see, touch, or consume
Durable good: Product that does not quickly wear out and lasts at least three years
Non-durable good: Perishable and lasts for less than three years
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
7
Understanding Services
Service: Primary or complementary activity that does not directly produce a physical product
Similarities between goods and services
Provides value and satisfaction to customers who purchase and use them
Can be standardized or customized to individual wants and needs
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
8
Differences between Goods and Services
Goods are tangible while services are intangible
Customers participate in many service processes, activities, and transactions
Demand for services is more difficult to predict than the demand for goods
Services cannot be stored as physical inventory
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
9
Differences between Goods and Services
Service management skills are paramount to a successful service encounter
Service facilities need to be in close proximity to the customer
Patents do not protect services
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
10
Service Management
Integrates marketing, human resources, and operations functions to:
Plan
Create
Deliver goods and services
Deal with service encounters
Moments of truth: Episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
11
Customer Benefit Packages (CBP)
Clearly defined set of tangible and intangible features that the customer recognizes, pays for, uses, or experiences
Combination of goods and services configured in a certain way to provide value to customers
Consists of a primary good or service, coupled with peripheral goods and/or services
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
12
Customer Benefit Packages (CBP)
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
13
Primary good or service
Peripheral goods or services
Variant
Core offering that attracts customers and responds to their basic needs
Core offering that are not essential to the primary good or service, but enhance it
CBP attribute that departs from the standard CBP and is normally location- or firm-specific
1.3 Examples of Goods and Service Content
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OM5 | CH1
Exhibit
14
Processes
Means by which goods and services are produced and delivered
Process: Sequence of activities that is intended to create a certain result
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
15
Key Processes in Business
Core processes: Focused on producing or delivering an organization’s primary goods or services
Support processes: Purchasing materials and supplies used in:
Manufacturing and installation
Managing inventory
Health benefits and day care on-site services
Technology acquisition and research and development
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
16
Key Processes in Business
General management processes: Accounting and information systems, human resource management, and marketing
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
17
1.4 Seven Eras of Operations Management
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
Exhibit
18
Sustainability
Organization’s ability to:
Strategically address current business needs
Develop a long-term strategy that embraces opportunities and manages risk for:
Products, systems, supply chains, and processes to preserve resources for future generations
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
19
Perspectives of Sustainability
Environmental sustainability: Organization’s commitment to the long-term quality of the environment
Social sustainability: Organization’s commitment to maintain healthy communities and a society that improves the quality of life
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
20
Perspectives of Sustainability
Economic sustainability: Organization’s commitment to:
Address current business needs and economic vitality
Have agility and strategic management to:
Prepare successfully for future business, markets, and operating environments
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
21
Data and Analytics
Used to evaluate:
Operations performance
Quality
Order accuracy
Customer satisfaction
Delivery
Cost
Environment compliance
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
22
Data and Analytics
Business analytics: Process of transforming data into actions through analysis and insights in:
Context of organizational decision making and problem solving
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
23
Current Challenges in OM
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OM5 | CH1
24
Technology
Globalization
Customer expectations
Engaging the workforce
Quality
Innovation and agility
Operations management is constantly changing
All operation managers should be aware of the various challenges that will define the future workplace
SUMMARY
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
Business analytics
Customer benefit packages
Durable good
Economic sustainability
Environmental sustainability
General management processes
Good
Inventory management
Moments of truth
KEY TERMS
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
Non-durable good
Operations management
Peripheral goods or services
Planning and budgeting
Primary good or service
Quality
Quality management
Scheduling
Scheduling and capacity
KEY TERMS
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
Service
Service encounter
Service management
Social sustainability
Sustainability
Variant
KEY TERMS
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
‹#›
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
OM5 | CH1
