Operations Management An Overview 1 APICS PROVIDENCE CHAPTER

Operations Management An Overview 1 APICS PROVIDENCE CHAPTER FEBRUARY 19, 2015 Zampello and Associates

A Simple Test 2 Write down [silently!], two numbers that add up to 9 Zampello and Associates

Question for YOU 3 In typical APICS exam style: 1. Is Operations Management a: A. Science B. Art C. Figment of our imagination D. None of the above Zampello and Associates

Operations Management is: 4 1) The planning, scheduling, and control of activities that transform inputs into finished goods and services. 2) A field of study that focuses on effective planning, scheduling, use and control … covers the concepts of engineering [design, industrial, quality], IT, production, inventory, accounting … n. APICS Zampello and Associates Dictionary, 13 th edition

APICS Principles of Operations Management Series 5 Principles of Operations Planning Principles of Manufacturing Management Principles of Manufacturing Operations Principles of Inventory Management Principles of Distribution & Logistics Zampello and Associates

Typical Organization Chart 6 Zampello and Associates

OM’s Transformation Process 7 Zampello and Associates

OM’s Objective 8 Attain the correct customer service AND Maintain the optimal operations efficiency AND Optimize the investment in inventory Zampello and Associates

Goods & Services 9 Manufacturing Services Tangible product Intangible product Product can be Product cannot be inventoried Low customer contact Longer response time Capital intensive inventoried High customer contact Short response time Labor intensive Zampello and Associates

Growth of the Service Sector 10 Service sector growing to 50 -80% of non-farm jobs Global competitiveness Demands for higher quality Huge technology changes Time based competition Work force diversity Zampello and Associates

OM Decisions 11 Zampello and Associates

Today’s OM Environment 12 Customers demand better quality, greater speed, and lower costs Companies implementing lean system concepts – a total system approach to elimination of waste Recognized need to better manage information using ERP expanded to the fully integrated enterprise: CRM and SRM Increased cross-functional decision making Zampello and Associates

OM in Practice 13 OM has the most diverse organizational function Manages the transformation process OM has many faces and names such as; V. P. operations, Director of supply chains, Manufacturing manager Plant manger, Quality specialists, etc. All business functions need information from OM in order to perform their tasks Zampello and Associates

Business Information Flow 14 Zampello and Associates

OM Across the Organization 15 Most businesses are supported by the functions of operations, marketing, new product engineering and finance The major functional areas must interact to achieve the organization goals Operations Management must include key customers and key suppliers Zampello and Associates

Summary 16 Operations management covers the entire supply chain! Zampello and Associates

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18 Z Anthony Zampello, CPIM, CSCP Consultant, Educator {APICS Master instructor: CPIM, CSCP & Lead Instructor: Principles of Operations Management} Cell phone: 401. 651. 0746 z@zampelloandassociates. com Zampello and Associates