The document discusses various concepts in operations management including market analysis to identify customer needs, competitive priorities and capabilities, trends and challenges in productivity improvement, designing and operating efficient processes and supply chains, and includes examples calculating productivity ratios and solving operations management problems.
The document discusses various concepts in operations management including market analysis to identify customer needs, competitive priorities and capabilities, trends and challenges in productivity improvement, designing and operating efficient processes and supply chains, and includes examples calculating productivity ratios and solving operations management problems.
The document discusses various concepts in operations management including market analysis to identify customer needs, competitive priorities and capabilities, trends and challenges in productivity improvement, designing and operating efficient processes and supply chains, and includes examples calculating productivity ratios and solving operations management problems.
B.Sc., ACFMA(Pak), MIPA(Aus) AFA(UK) OM-Market Analysis • Market analysis divides customer into market segment and identifies the needs of each market segment – Market segmentation is the process of identifying groups of customers with enough in common to warrant the design and provision of services or product that the group wants and needs – Identifies the needs of each segment and assesses how well competitors are addressing those needs – Market needs may be grouped • Service or product needs(attributes such as price, quality and degree of customization) • Delivery system needs(attributes of processes and supporting system and recourses needed to deliver such as availability, convenience, courtesy, safety, accuracy, reliability) • Volume needs(attributes of demand such as high/low volume, degree of variability in volume, degree of predictability in volume) • Other needs(other attributes such as reputation, no of years in business, after sale technical support, ability to invest, competent legal services) Competitive priorities and capabilities • Competitive priorities are the critical operational dimensions a process or supply chain must to satisfy internal or external customers, both now and in future • Competitive capabilities(cost, quality, time and flexibility dimensions that a supply chain or process actually possesses and able to deliver) Order winner and qualifier • Order winner- a criterion customers to differentiate the services or products of one firm from others • Order qualifier-minimal level from a set of criteria for a firm to do business in a particular market segment. Trends and challenges in OM • Productivity Improvement (value of output produced divided by the value of input) – Productivity=output/input – Measuring productivity OM-Productivity calculation • Three employees process 600 insurance policies in a week. They work 8 hrs/day, 5days/week. • A team make 400 units, market price@$10 each. Job costs are $400 labor, $1000 material, $300 overheads. OM-Trends and challenges • Role of management (how addressed) • Global competition comparative cost advantage (china& india have low cost) disadvantage of globalization (quality, technology, training etc) strong global competition affects industries everywhere) Designing & operating Process and SC • Managing processes – Process strategy and analysis – Quality & performance – Capacity planning – Constraint management – Lean systems – Project management Designing & operating Process and SC • Managing customer demand – Forecasting – Inventory management – Operations planning &scheduling – Resource planning • Managing supply chains – Supply chain design – Supply chain logistic networks – Supply chain integration – Supply chain sustainability OM-problems • Student tuition at university is $150 per semester credit hour. The supplements school revenue by $100 per semester credit hour. Average class size of 3-credit hour is 50 students. Labor costs are $4,000/class, material costs $20per student per class and overhead costs are $25,000 per class. – Calculate multifactor productivity ratio for this course process – If instructor work an average of 14 hours per week for 16 weeks for each 3-credit class of 50 studens, what is labor productivity ratio? OM-problem • NA makes garments. In a week, employees worked 360 hours for batch of 132 garments, of which 52 were “seconds”. Seconds are sold @ $90 each. Rest are sold @$200 each. What is the labor productivity ratio?