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Intro of Operations Management

Operations management aims to efficiently produce the right quality goods and services as quickly and cheaply as possible. The main tasks of operations management are to fine-tune production processes to ensure quality, reduce costs of materials and labor, and cut unnecessary costs. Operations management involves utilizing staff, materials, equipment, and technology to handle strategic issues like plant size, project management methods, and IT network structure. It also entails minimizing waste of raw materials. In summary, operations management is about managing a business to produce quality products and services at low unit costs, at the right time, to meet customer needs.

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Eva Mae Agdon
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101 views19 pages

Intro of Operations Management

Operations management aims to efficiently produce the right quality goods and services as quickly and cheaply as possible. The main tasks of operations management are to fine-tune production processes to ensure quality, reduce costs of materials and labor, and cut unnecessary costs. Operations management involves utilizing staff, materials, equipment, and technology to handle strategic issues like plant size, project management methods, and IT network structure. It also entails minimizing waste of raw materials. In summary, operations management is about managing a business to produce quality products and services at low unit costs, at the right time, to meet customer needs.

Uploaded by

Eva Mae Agdon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

BLESSED DAY and HAVE FUN

TO ALL
READING
OBJECTIVES FOR TODAY’S
DISCUSSION
Meaning of Operations
1 1
Management

The aims of operations


2
management

The main tasks of operations


3 management

4 What Operation Management is all about

2
1. What is Operations
Management?
Operations management is the administration of
business practices to create the highest level of
efficiency possible within an organization. It is
concerned with converting materials and labor into
goods and services as efficiently as possible to
maximize the profit of an organization

(Source: investopedia.com)
3
Photos not mine credit to pbs.com

4
According to Anderson, and Parker in their book
Operations Management for Dummies, Operations
management cover much more than a manufacturing
company of parts and products, it also encompasses
services, and all sorts of projects and initiatives the groups
of people undertake together

5
Meaning of
COST
• Cost is typically the expense incurred for making a product or service that
is sold by a company

6
Credit to patriot software.com for the image

7
Meaning of
Revenue
• Revenue is the income generated from normal business operations and
includes discounts and deductions for returned merchandise. It is the top
line or gross income figure from which costs are subtracted to determine
net income.

8
2. What does operations management aim to
do?
•To produce the RIGHT QUALITY of goods
and services
• To produce them as QUICKLY as possible
• To produce them as CHEAPLY as possible

9
Meaning of
Quality
Quality refers to the set of inherent properties
of an object that allows satisfying stated or
implied needs.

10
3.The main tasks of operations
management
An operations manager is in charge of making sure that
production processes run smoothly. That includes fine-
tuning production processes to ensure quality, holding
down the costs of materials and labor, and cutting costs that
don’t add value to the finished product.

Source:Lumen learning .com

11
Example of
Business rendering
Service

Credit to Study.com for the photo/ image)

12
Service organizations succeed by providing services that satisfy
customers’ needs. Companies that provide transportation, such as
airlines, have to get customers to their destinations as quickly and
safely as possible. Delivery companies packages, such as FedEx,
LBC must pick up, sort, and deliver packages in a timely manner.
Colleges and other State universities must provide quality
educations. Companies that provide both services and goods,
must produce a quality good and deliver it satisfactorily.
Source :https://open.lib.umn.edu/exploringbusiness/chapter/11-6-operations-management-for-service-providers /

13
• Economies of scale are cost advantages reaped by companies
when production becomes efficient. Companies can achieve
economies of scale by increasing production and lowering
costs. This happens because costs are spread over a larger
number of goods.

14
Larger companies are able to produce more by spreading
the cost of production over a large amount of goods.

15
4. What Operation Management is all about
or understanding what op is all about
• Operations management involves utilizing resources from
staff, materials, equipment, and technology

• Operations management handles various strategic issues,


including determining the size of manufacturing plants and
project management methods and implementing the structure of
information technology networks.
• Operations management entails studying the use of raw
materials and ensuring minimal waste occurs.
Source: investopedia.com

16
17
Thus Operation Management ,is MANAGING a
business
• To produce QUALITY goods and/or services
At LOW Costs per unit
• At the RIGHT time
• To meet customer NEEDS

18
THAN
K
YOU

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