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MGT 460
OPERATIONS MANAGEMENT
Introduction
Dr. Aneel SALMAN
Department of Management Sciences
COMSATS Institute of Information Technology
ISLAMABAD
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Book
Operations Management, Contemporary
Concepts and Cases, 2nd edition, 2004,
Roger G Schroeder
Operations Management- An Integrated
Approach, 2nd Edition, 2005 R Dan Reid
and Nada R Sanders
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Economy is bad .lets be an
entrepreneur !
What business aspects would you
consider for starting a Fusion Food
restaurant in Islamabad?
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Cross-Functional Nature of Operations
MARKETING FINANCE
OPERATIONS
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What is Operations?
It is the process by which inputs are transformed
into outputs.
Input
Output
Transformation
Process
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Types of Transformations
Physical
Locational
Exchange
Storage
Physiological
Informational
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What is Operations Management?
It is the management of process by which inputs
are transformed into outputs.
Input
Output
Transformation
Process
Operations
Management
Resources:
Human
Material
Financial
Informational
Products &
Services
Definition
Operations is responsible for supplying the
product or service of the organization.
Operations managers make decisions
regarding the operation functions and its
connection with other functions. The
operations managers plan and control the
production systemand its interfaces within
the organization and with the external
environment.
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Goods and Services
Pure Good
Pure Service
Mixture Goods & Service
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Key Decision Areas in OM
Process
Quality
Capacity
Inventory
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Relation of Operations its environment
Operations transformation system
Suppliers
Human
Resources
Marketing
Accounting Finance MIS
Engineering
SOCIETY
GOVERNMENT
External
Environment
CUSTOMERS
COMPETITORS
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Trends in OM
Supply Chain
Globalization of Operations
Environmental Concerns
Customer-Directed Operations
E-Commerce
Trends in 2014
Manufacturers will begin to build 3D value chains.
Operational, information, and consumer
technology converge to reshape approaches to
technology management.
Operational resiliency will be the focus of supply
chain strategies in 2014 and beyond.
Supply chain technology investment will involve
modernizing existing systems, while also trying
new approaches.
The modernization of the underlying B2B
commerce backbone becomes an
investment priority for IT.
Product life cycle management (PLM)
strategies become increasingly global,
multidisciplinary, innovation-based, and
customer-focused.
PLM initiatives will focus on value
realization.
Servitization optimization will be core to future
profitable revenue growth and leading
manufacturers will make the necessary
investments to enable these strategies.
On their way toward the factory of the future,
2014 will set the stage for a new manufacturing
renaissance.
Plant floor IT investments will continue to become
a higher share of the overall technology
investment portfolio.
Dr. Michael Porter
Dr. N. Venkat Venkatraman
3D Value Chain