More recently manager have recognized the importance of both manufacturing and cervices and the need to integrate the two primary objective of this text is to emphasize integrate integration Companies that want to succeed as world-class operations therefore must devote resources to both areas In addition production and service must be compatible with each other and strategically aligned with the firm's overall goals Operations management is recognized today as a critical functional area within every organization. No longer is operations management considered to be subservient to the financed marketing areas instead it is lOW treated as an equal. Firms that fail to recognize the significant contribution of the operations management function will lose profits and market share to those firms that do The once-reactive role of operations management which concentrated solely on minimizing costs has been replaced by a more proactive position of maximizing the value added to the goods and services that the organization provides. Some of the major issues facing operations management executives today in this constantly changing business environment include.
Reducing the development and manufacturing time for new goods and services.
- Achieving and sustaining high quality while controlling costs.
- Integrating new technologies and control systems into existing processes.
- Obtaining training, and keeping qualified workers and managers.
- Working effectively with other functions of the business marketing engineering
- Integrating production and service activities at multiple sites in decentralized organizations.
- Working effectively with suppliers and being user-friendly for customers.
- Working effectively with new partners formed by strategic alliances for example IBM and Apple Computers All of these issues are interrelated the key to success is for operations management to do all of these at a level that is competitive in both global and domestic markets.
- What is operations management and how is it different from operations research?
- What were the underlying reasons for the lack of emphasis on operations management in the post-World War II years?
- What are the advantage of bringing customers into the transformation process or technical core?
- Take a look at the want ads in The wall Street Journal and evaluate the opportunities for an I major with several ears of experience.
- What are the major factors leading to the resurgence of interest in OM today?
- Explain the difference from an operation management perspective between cost minimization and value maximization.
- Using Exhibit 1.3 as a model describe the input-transformation-output relationships found in the following systems.
a. An airline.
h.-A state penitentiary.
c. A branch bank.
d. A bakery.
e. A clothing manufacturer.
f A dry cleaner.
g. An automobile assembly line.
h. An accounting firm
8. What do we mean by the expression value chain, as it applies to the transformation process of a good or service?
9. Identify a product that is 100 percent goods without any service component. Identify a product that is 100 percent service without any goods component.
10. Speculate on the future role of the OM function within an organization and the future role of the operations manager.