OPERATIONS and LOGISTICS MANAGEMENT Applied Management Science for Decision Making, 2e © 2014 Pearson Learning Solutions Philip A. Vaccaro, PhD Introduction.

OPERATIONS and LOGISTICS MANAGEMENT

Applied Management Science for Decision Making, 2e © 2014 Pearson Learning Solutions Philip A. Vaccaro , PhD

Introduction & Importance

Scope & Trends

Careers & Course Overview

Operations Management

The competent and adept management

of complex systems in the service, non-

profit, manufacturing, and government

sectors via the effective and efficient

utilization of time, labor, money, and

materials in the generation of goods

and/or services.

Applied Management Science for Decision Making, 2e © 2014 Pearson Learning Solutions Chapter 1-2

DEFINITION

Overview

Operations Management plans for, and creates thecompetitive advantages that all businesses need for fueling profitable growth. As a result, OM is

the most critical of the business functions.Studying OM means studying modern planning, decision-making and management methods in all

functional areas of an organization, including strategic and tactical planning, products and services

development, product and project management, process and supply chain management, and more.

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Why Study OM?

All firms market (sell) ,

finance (account), and produce (operate)

I. Operations Management is one of the three major functions of any organization……and they are integrally related.

Applied Management Science for Decision Making, 2e © 2014 Pearson Learning Solutions Chapter 1-4

MARKETING

THESTRATEGI

CTRIAD

FINANCEOPERATIONS

Why Study OM?

II. Operations Management shows us how goods and services are generated. Consequently, it is the………

foundation of all business !

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Why Study OM?

III. Operations Management shows us what OM managers do. This enables us to learn the skills, techniques, and models needed to practice 21st century management, and to also explore the lucrative career oppor- tunities in OM.

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Why Study OM?

Manufacturing activity Warehousing Distribution Inventory Control Research and Development

Maintenance Facilities and Equipment Worker training Cost and Quality Control Planning and Scheduling

IV. Operations Management represents as much as 70% of the operating budget of most firms due to:

Applied Management Science for Decision Making, 2e © 2014 Pearson Learning Solutions Chapter 1-7

Why Study OM?

V. Operations Management, by virtue of its huge collective budget, provides a major opportunity for the firm to improve its profitability.

In fact, OM has become the last resort for most firms that have exhausted the potential of marketing, finance, and general management.

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Why Study OM?

VI. About 40% of all jobs in the United States are in Operations Management.

Exposure to the following disciplines will enhance one’s job prospects:

Operations research Statistics Information systems Economics Logistics / Transportation

Mathematics Accounting / Finance Computer science Engineering Manufacturing

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What OM Managers Do

Supervise skilled trade workers & technicians.

Manage the production and technical operations.

Integrate new technology into manufacturing and service processes.

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What OM Managers Do

Develop, monitor, and update measures of efficiency.

Develop, monitor, and change operating plans and schedules.

Control costs and quality.

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What OM Managers Do

Evaluate and improve the existing operating system in terms of productivity and customer responsiveness.

Translate improved operating systems into competitive ad- vantage in the marketplace.

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OM Necessary Skills

Keen understanding of people and processes. Ability to solve problems in multi-disciplinary teams. Strong leadership/coordinating ability. Strong analytical and problem-solving skills. Strong interpersonal communication skills. Strong background in mathematics. Strong background in computer programming. Proficiency in one or more foreign languages. Graduate degree in the field or a related field.

Applied Management Science for Decision Making, 2e © 2014 Pearson Learning Solutions Chapter 1-13

Exciting New Trends in OM

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Global Focusand

Just-in-TimeShipments

Low cost, reliable global communication networks

Cost of capital putting pressure on reducing inventories

Low cost, reliable global transportation networks

Exciting New Trends in OM

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Supply Chain

Partners

Rapid ProductDevelopment

Quality emphasis requires supplier engagement in product improvement

Shorter production cycles and computer-aided design

International collaboration and rapid communication

Exciting New Trends in OM

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Mass Customizatio

nEmpowered Employees

Lean Production

Affluence and world-wide markets

Increasingly flexible production processes

Increasingly knowledge and information-based society

Career Possibilities

Business Executive Blue-Collar Supervisor Construction Manager Production Manager Operations Manager Information System Manager Materials Manager Project Manager Customer Service Mgr Defense Analyst

Purchasing Agent Inventory Analyst Cost Estimator Systems Analyst Industrial Engineer Quality Control Mgr Time & Motion Analyst Operations Scheduler Operations Planner Process Improvement Manager

Career Possibilities

In corporations, OM managers are responsible for developing new products and services, the strategic and tactical plans, and the execution of those plans

Demand for OM managers is particularly high in financial services, IT, manufacturing, non-profit, government, education, and health care

Entrepreneurs will find OM knowledge pivotal • Advancement opportunities are superior in almost

all industries, and commonly lead to senior leadership positions