Operations Management

Operations Management
Table of Contents
Chapter 1 – Introduction 2
Chapter 2 - Strategy 5

Chapter 1 – Introduction
Operations and supply chain management (OSCM): The design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.
Operations vs. Supply Chain
Operations refer to the manufacturing and service process that are used to transform the resources employed by a firm into products desired by customers.
Supply Chain refers to the processes that move information and materials to and from the manufacturing and service processes of the firm.
Operations and Supply Chain processes:
Planning, Sourcing, Making, Delivering, Returning
Services vs. Goods
Services | Goods |
Intangible | Tangible |
Interaction with customers | Separate from customer |
Heterogeneous – various outcomes | Produced consistently |
Perishable and time dependent | Can be stored for later use |
Package of features that affect 5 senses   * Supporting facilities   * Facilitating goods   * Explicit services   * Implicit services | N/A |
The Goods-Services Continuum
Pure goods,   Pure services, Core goods, Core services

Product-service bundling: When a firm builds service activities into its product offerings to create additional value for the customer
Historical Development of Operations & Supply Chain Management
Manufacturing Strategy Paradigm
Late 1970s-Early 1980s. Harvard Business School – William Abernathy, Kim Clark, Robert Hayes, and Steven Wheelwright. Focused factory that performs a limited set of tasks extremely well. Low cost, high quality, and high flexibility in designing and managing factories.
Lean manufacturing, JIT, and TQC
1980s. Japanese. JIT is an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed. TQC aggressively sought to eliminate causes of production defects. Lean...