Slide 1Slide 2Slide 3What is Operations and Supply Management?Why Study Operations Management?What is a Transformation Process? DefinedTransformationsSlide 8What is a Service and What is a Good?Slide 10Historical Development of OMHistorical Development of OM (cont’d)Current Issues in OMCurrent Issues in OM (cont’d)Question BowlSlide 16Slide 17End of Chapter 1• McGraw-Hill/IrwinCopyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 1Introduction to the Field•What is Operations and Supply Management?•Why Study Operations Management?•Transformation Processes Defined•Differences between Services and Goods•The Importance of Operations Management•Historical Development of OM•Current Issues in OMOBJECTIVES 1-3What is Operations and Supply Management? Operations and Supply Management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services1-4Why Study Operations Management? Business Education Systematic Approach to Org. ProcessesCareer OpportunitiesCross-Functional ApplicationsOperationsManagement1-5What is a Transformation Process?Defined A transformation process is defined as a user of resources to transform inputs into some desired outputs1-6Transformations•Physical--manufacturing•Locational--transportation•Exchange--retailing•Storage--warehousing•Physiological--health care•Informational--telecommunications1-7Operations and Supply ManagementSupply Chain ProcessesSourcingProcessesManufacturingProcessesServiceProcessesDistributionProcessesLogisticsProcessesLogisticsProcesses1-8What is a Service and What is a Good?•“If you drop it on your foot, it won’t hurt you.” (Good or service?)•“Services never include goods and goods never include services.” (True or false?)1-9The Goods-Services Continuum1-10Historical Development of OM•JIT and TQC•Manufacturing Strategy Paradigm•Service Quality and Productivity•Total Quality Management and Quality Certification1-11Historical Development of OM (cont’d)•Business Process Reengineering•Six-Sigma Quality•Supply Chain Management•Electronic Commerce•Service Science1-12Current Issues in OM•Coordinate the relationships between mutually supportive but separate organizations.•Optimizing global supplier, production, and distribution networks.•Increased co-production of goods and services1-13Current Issues in OM (cont’d)•Managing the customers experience during the service encounter•Raising the awareness of operations as a significant competitive weapon1-14Question BowlA major objective of this book is to show how smart managers can do which of the following?a. Improve efficiency by lowering costsb. Improve effectiveness by creating valuec. Increasing value by reducing pricesd. Serving customers welle. All of the aboveAnswer: e. All of the above1-15Question BowlIn the Input-Transformation-Output Relationship, a typical “input” for a Department Store is which of the following?a. Displaysb. Stocks of goodsc. Sales clerksd. All of the abovee. None of the aboveAnswer: e. None of the above (The above are considered “Resources” of a department store. The correct answer is “Shoppers”.)1-16Question BowlIn which of the following decades did the concept of quality control originate?a. 1920’sb. 1930’sc. 1940’sd. 1950’se. 1970’sAnswer: b. 1930’s (Tools such as sampling inspection and statistical tables where first developed by Walter Shewhart, H. F. Dodge, and H. G. Romig.)1-17End of Chapter