Inseparability – Services cannot be pulled into different parts or separated (as many tangible goods can be—which makes operations management quite different for products). Managing operations is just as critical on the service side as it is on the product side. Countless operating decisions must be made that have both long- and short-term impacts on the organization’s ability to produce goods and services that provide added value to customers. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Global Text Project, Business Fundamentals. LEC # TOPICS; 1: Introduction Operations Overview : 2: Project Management New Product Development and 3-DCE : 3: Operations Strategy Operations Analysis : 4: Inventory Management : 5: Process Technology : 6: Process Technology (cont.) An adhesive that is sticky enough to hold items in place (but not too sticky that it can not be removed and readjusted if necessary! It does not matter whether the organization is a for-profit company, a non-profit organization (religious organizations, hospitals, etc. This management of an instance is rather different than the management of a product. They are an occurrence, not a tangible good. A therapist is a good example of this. While there are countless considerations to be made, many of which are unique to specific organizations or industries, these core operational decisions are strong indications of the mentality service management specialists consider: Choosing where to open a facility, how to lay out the facility, what size is appropriate, and overall how efficiently a given space can be used relative to the cost are key considerations. 1. Introduction to Operations Management Unit Introduction Operations, as it is termed, are focused on conversion of input to output. Understanding this field of work requires an understanding of what a service constitutes. 3M manufactures a top-quality adhesive tape called “Magic Tape”. Figure 1 summarizes the transformation process. Then they came up with an innovative idea for Toshiba to provide better service to its customers. The old approach of providing this service was cumbersome and time-consuming: Under this traditional approach, the total time to get a laptop computer repaired was two weeks—a long time for people to be without their laptop! Which costs affect the revenue? Operations management transforms inputs (labor, capital, equipment, land, buildings, materials, and information) into outputs ( goods and services ) that provide added value to customers. Explain the role of operations management. ), or a government agency; all organizations must strive to maximize the quality of their transformation processes to meet customer needs. Service operations are simply the application of operations management to an intangible good (i.e. Mac vs. pc: the stereotypes may be true cnn.com, Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), Trillion Dollar Coach Book (Bill Campbell). Now customize the name of a clipboard to store your clips. purchase cutting tools and other fabrication equipment. A teacher may teach you a topic, and another teacher may teach you the same topic in another course. Since 3M had no proprietary control over the transformation process for VHS tape that would allow the company to protect its profit margins for this product, it dropped VHS tape from its offerings. UPS picked up the repaired computers and delivered them back to the customers. Just as a product manufacturing facility will know when a product will be where, so too do service operators need to know when a given service should start and what duration of time is required to complete it. Operations Management - Introduction to Operations Management-:- Introduction to Operations Management-:- Historical Evolution of Operations Management-:- Operations performance objectives - Introduction to Operations Management-:- Role of Operations Management-:- Roles and Responsibility of an Operations Manager The two 3M examples of Magic Tape and VHS tape show how important the transformation process and operations management can be to providing and protecting an organization’s competitive advantage. Figure 1 summarizes the transformation process. Operations Management and the Transformation Process. A hair dresser rarely gives the same haircut twice and, even if they do, it would be cut to fit a different individual. UPS delivers the computers back to their owners. Global Text Project, Business Fundamentals. 7: Process Technology ERP Systems : 8: Process Analysis Process Flow Models : 9 This is a good example of service inconsistency. UPS picks up computers from Toshiba owners. As services behave somewhat differently than tangible products, operations managers must take into account different considerations when optimizing their operational strategy. September 17, 2013. See our User Agreement and Privacy Policy. The active role of operations: – Inputs become Outputs after some Transformation (Process or Operation) – Food processing example: An opposite example of the strategic implications of the input/output transformation process is 3M’s decision in the 1980s to stop manufacturing VHS tape for video players and recorders. Analyze the importance of operations management in protecting an organization’s competitive advantage. (adsbygoogle = window.adsbygoogle || []).push({}); Operations management is the management of processes that transform inputs into goods and services that add value for the customer. 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