18 Operations Managemente Managing uality Efficiency, and Responsiveness to Customers Technolo OThe McGraw-Hill Companies. Inc, 2000
18-1 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Operations Management: Managing Quality, Efficiency, and Responsiveness to Customers Technology 18
18-2 Operations Management Refers to the management of the production system that transforms inputs into finished goods and services o Production system: the way a firm acquires inputs then converts and disposes outputs o Operations managers: responsible for the transformation process from inputs to outputs Operations management seeks to increase the quality efficiency, and responsiveness of the firm Seeks to provide a competitive advantage " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
18-2 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Operations Management ◼ Refers to the management of the production system that transforms inputs into finished goods and services. ◆ Production system: the way a firm acquires inputs then converts and disposes outputs. ◆ Operations managers: responsible for the transformation process from inputs to outputs. ◼ Operations management seeks to increase the quality, efficiency, and responsiveness of the firm. ◆ Seeks to provide a competitive advantage
18-3 The Purpose of Operations Management Figure 18.1 The Production System Inputs— Conversion— Outputs raw materials skills .goods component parts. machines eservices labor computers " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
18-3 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 The Purpose of Operations Management The Production System Inputs Conversion Outputs •raw materials •labor •component parts • skills • machines • computers •goods •services Figure 18.1
18-4 Operations Management Concepts Quality: goods and services that are reliable and perform correctly Quality allows customers to receive the performance that they expect Eficiency: the amount of input to produce a given output o Less input required lowers cost and waste Responsiveness to customers: actions taken to respond to customer needs Firm can react quickly and correctly to customer needs as they arise " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
18-4 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Operations Management Concepts ◼ Quality: goods and services that are reliable and perform correctly. ◆ Quality allows customers to receive the performance that they expect. ◼ Efficiency:the amount of input to produce a given output. ◆ Less input required lowers cost and waste. ◼ Responsiveness to customers: actions taken to respond to customer needs. ◆ Firm can react quickly and correctly to customer needs as they arise
18-5 Improving Responsiveness to Customers Without customers, organizations cease to exist Non-profit and for-profit firms all have customers o Managers need to identify who the customer is and their needs a What do customers want? Usually customers prefer o A lower price to a higher price o High quality over low quality e Fast service over slow service a Also good after sale support o Many features over few features o Products tailored to their specific needs " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
18-5 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Improving Responsiveness to Customers ◼ Without customers, organizations cease to exist. ◆ Non-profit and for-profit firms all have customers. ◆ Managers need to identify who the customer is and their needs. ◼ What do customers want? Usually customers prefer: ◆ A lower price to a higher price. ◆ High quality over low quality. ◆ Fast service over slow service. ◼ Also good after sale support. ◆ Many features over few features. ◆ Products tailored to their specific needs