1.1 What is OM? 1.2 Why study OM? 1.3 What do Op. Managers do? 1.4 Organizing to produce G&S 1.5 Heritage of OM 1.6 Operations as a service

1. Operations management
MARÍA GONZÁLEZ BLÁZQUEZ
ÁLVARO TERRY ÁLVAREZ
FELISA DEL VIEJO NÚÑEZ

2. Index
 What is Operations Management?
 Why Study OM?
 What Operations Managers Do?
 Organizing to Produce Goods and Services
• Goods .Definition and characteristics
• Services. Definition and characteristics
 The Heritage of OM
 Operations as a Service

3. What is Operations Management?
 OM is defined as:
“The Science and the Art of ensuring that goods and services are
created and delivered successfully to customers”

4. What is Operations Management?
 Deals with :
 The design and management of
 products
 processes
 services
 supply chains
 It considers the acquisition, development, and utilization
of resources that firms need to deliver the goods and
services their clients want.

5. Why Study OM?
 OM is an integrative body of knowledge; whose
skills are needed in industries as diverse as health
care, education, telecommunications, lodging, food
service, banking, consulting and manufacturing

6. Why Study OM?
 OM is one of the three major functions of any organization,
and its integrally related to all the other business functions.
 We study OM because we want to know how goods and
services are produce.
 We study OM to understand what operations managers do.
 We study OM because it is such a costly part of an
organization.

7. What Op. Managers Do?

8. What Op. Managers Do?
 Key activities;
 Helping organizations to do more with less
 Exploiting technology to improve productivity
 Building quality into goods, services, and processes
 Determining Schedules
 Creating a high-performance workplace
 Continually learning and adapting the organization to global and
environmental changes

9. Organizing to Produce Goods and Services
 A Good is a physical product that you can see, touch,
or possible consume
 Durable Goods --> >= 3 years
 Non-Durable --> <3 years
 A Service is any primary or complementary activity

10. Characteristics of goods
 Tangible product
 Production usually separate from consumption
 Can be inventoried
 Low customer interaction

11. Characteristics of services
 Intangible product
 Produced & consumed at same time
 Often unique
 High customer interaction
 Often knowledge-based

12. What is a service and a good?
1. “If you drop it on your foot, it won´t hurt you”
 GOOD OR SERVICE?
2. “Services never include goods and goods never
include services”
1. TRUE OR FALSE
3.

13. GOODS SERVICES
1. Can be resold
2. Can be inventoried
3. some aspects of
quality measurable
4. Selling is distinct
from production
5. Transportable
6. Often easy to
automate
1. Reselling unsual
2. Difficult to inventory
3. Qualify dificult to
measure
4. Selling is part of
service
5. Provider, not product,
is transportable
6. Often difficult to
automate

14. The Heritage of OM

15. The Heritage of OM
 Industrial revolution
 Division of Labor , Adam Smith
 Scientific Management
 Moving Assembly Line , Henry Ford
 Human Relations
 Motivation theories
 Management Science
 Linear Programming, George Dantzig
 Quality revolution
 JIT and TQM
 Globalization
 EU
 Information Age/Internet revolution
 www, ERP , E-commerce, supply chain management
1776
1913
1940’s-60’s
1947
1970
1970’s-80’s
1990’s

16. Five eras of operation management

17. Operations as a Service
 Repair and Maintenance
 Government
 Food and Clothing
 Transportation
 Insurance
 Financial
 Education
 Legal
 Medical
 Other Professional Occupation

18. BUT..
Goods contains services & services contain
goods

19. Example
 “if a person goes to a restaurant that offers food, the
food would become the good, while the ambience or
the waiter’s service will become service”

20. CASE STUDY

21. ANY QUESTIONS?