Operation management

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					Operation Management
Kusdhianto Setiawan, SE, Siv.Øk
Department of Management
Faculty of Economics
Gadjah Mada University
OM: Some Basic Concepts

   Operation management: the design
    and operation of productive systems
   Operation: a function or system that
    transform inputs into outputs of
    greater value
   Input could be…. Material, machines,
    labor, management, capital
   Output …. Goods and services
The Transformation Process



    Input
    Material
                                         Output
   Machines       Transformation
                                          Goods
     Labor           Process
                                         Services
  Management
    Capital



               Requirements & Feedback
Transformation Forms

   Physical      manufacturing Operation
   Locational    transportation,
                  warehouse operation
   Exchange      retail operation
   Physiological health care
   Pshycological entertaintment
   Informational Communication
Operation and Other Functional
Management Area


                       Operation
                (produces goods & services)




    Marketing                                 Finance
     (demand)                                 (capital)
Operation: The Technical Core


                            Capital Market

                               Finance




                                                        Labor Forces
               Purchasing
   Suppliers




                                             Personel
                              Operation


                              Marketing

                              Customers
 The Hystory of OM
Era          Events/Concepts           Dates Originator
Industrial   Steam Engine              1769   James Watt
Revolution
             Division of Labor         1776   Adam Smith
             Interchangeable partd     1790   Eli Whitney
Scientific   Principle of Scientific   1911   Frederick W.
Management   Management                       Taylor
             Time and Motion Studies 1911     Frank and Lillian
                                              Gilbreth
             Activity Schedulling             Henry Gantt
             Chart
             Moving Assembly Line             Henry Ford
The Hystory of OM
Era          Events/Concepts        Dates   Originator
Human        Hawthorne Studies      1930    Elton Mayo
Relation     Motivation Theories    1940s Abraham Maslow
                                    1950s Frederik Hezberg
                                    1960s Douglas
                                          McGregor
Management   Linear Programming     1947    George Dantzig
Science      Digital Computer       1951    Remington Rand
             Simulation, waiting line 1950s Operation
             theory, decision theory,       Research Groups
             PERT/CPM,                      Joseph Orlicky,
             MRP                      1960s IBM
The Hystory of OM
Era          Events/Concepts      Dates Originator
Quality      Just-in-Time (JIT)    1970s Taiichi Ohno
Revolution                               (Toyota)
             Total Quality         1980s W. Edward
             Management (TQM)            Deming, Joseph
                                         Juran
             Strategy & Operations       Wickham
                                         Skinner, Robert
                                         Hayes
             Business Process      1990s Michael Hammer,
             Reengineering               Jamees Champi
The Hystory of OM
Information     EDI, EFT               1970s Numerous
Age                                          Individuals and
                                             Companies
                CIM (computer-         1980s
                integrated
                manufacturing), PCs,   1990s Tim Berners-Lee
                Internet, WWW.
Globalization   Worldwide markets &    1990s Numerous
                operations                   Companies and
                Supply Chain                 Nations
                Management
                E-Commerce
                Mass Customization
Some Important Issues
   Globalization
   Services
   Competitiveness
    – Productivity as a measure of competitiveness
   Competitive Industries
    – Barriers to entry? Economies of Scale?
   Competitive Firms
    – Market share, eps, revenues growth, profit margin, EVA
   Importance of Strategy
   Product variety and mass customization

				
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posted:10/19/2011
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