Mata kuliah : J0444 - Manajemen Operasional
Tahun
: 2010
Introduction to Operation Management
Pertemuan 01
Mekanisme Perkuliahan
 Multi
Channel Learning
 Self Study
 Face to Face (On Class)
 eLearning “Binus Maya”
 GSLC (Off)
 Mempersiapkan field trip
 Tugas :
 Binus Maya (wajib dikerjakan)
 Lainnya (dosen bersangkutan)
 Aturan keterlambatan masuk ruang kuliah
Tata Tertib di dalam kelas
Learning Objectives
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Define the term operations management
Identify the three major functional areas of organizations
and describe how they interrelate
Compare and contrast service and manufacturing
operations
Describe the operations function and the nature of the
operations manager’s job
Identify and define productivity
Operations Management
• Operations Management is:
The management of systems or processes
that create goods and/or provide services
• Operations Management affects:
– Companies’ ability to compete
– Nation’s ability to compete internationally
The Economic System Transforms Inputs to
Outputs
Inputs
Land,
Labor,
Capital,
Manageme
nt
Process
The economic system
transforms inputs to
outputs at about an
annual 2.5% increase in
productivity (capital 38%
of 2.5%), labor (10% of
2.5%), management (52%
of 2.5%)
Feedback loop
Outputs
Goods
and
Services
Goods-service Continuum
Goods
Service
Surgery, teaching
Song writing, software development
Computer repair, restaurant meal
Automobile Repair, fast food
Home remodeling, retail sales
Automobile assembly, steel making
1-7
Food Processor
Inputs
Raw Vegetables
Metal Sheets
Water
Energy
Labor
Building
Equipment
Processing
Cleaning
Making cans
Cutting
Cooking
Packing
Labeling
Outputs
Canned
vegetables
Hospital Process
Inputs
Doctors, nurses
Hospital
Medical Supplies
Equipment
Laboratories
Processing
Examination
Surgery
Monitoring
Medication
Therapy
Outputs
Healthy
patients
Manufacturing or Service?
Tangible
Act
Characteristics of Goods
 Tangible product
 Consistent
product definition
 Production
usually separate
from consumption
 Can be
inventoried
 Low customer
interaction
© 1995 Corel Corp.
Characteristics of Service
 Intangible product
 Produced & consumed at
same time
 Often unique
 High customer interaction
 Inconsistent product
definition
 Often knowledge-based
 Frequently dispersed
© 1995 Corel Corp.
Key Differences
1. Customer contact
2. Uniformity of input
3. Labor content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Production and delivery
7. Quality assurance
8. Amount of inventory
9. Evaluation of work
10. Ability to patent design
Goods vs Service
Characteristic
Goods
Service
Customer contact
Low
High
Uniformity of input
High
Low
Labor content
Low
High
Uniformity of output
High
Low
Output
Tangible
Intangible
Measurement of productivity
Easy
Difficult
Opportunity to correct problems
High
Low
Inventory
Much
Little
Evaluation
Easier
Difficult
Patentable
Usually
Not usual
Scope of Operations Management
• Operations Management includes:
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Forecasting
Capacity planning
Scheduling
Managing inventories
Assuring quality
Motivating employees
Deciding where to locate facilities
Supply chain management
– And more .
..
Types of Operations
Operations
Goods Producing
Examples
Farming, mining, construction,
manufacturing, power generation
Storage/Transportation Warehousing, trucking, mail
service, moving, taxis, buses,
hotels, airlines
Exchange
Retailing, wholesaling, banking,
renting, leasing, library, loans
Entertainment
Films, radio and television,
concerts, recording
Communication
Newspapers, radio and television
newscasts, telephone, satellites
Key Decisions of Operations Managers
• What
What resources/what amounts
• When
Needed/scheduled/ordered
• Where
Work to be done
• How
Designed
• Who
To do the work
Organizational Functions
• Marketing
– Gets customers
 Operations

creates product or service
 Finance/Accounting

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Obtains funds
Tracks money
© 1995 Corel Corp.
Functions - Bank
Commercial Bank
© 1984-1994
T/Maker Co.
Marketing
Teller
Scheduling
Operations
Check
Clearing
Transactions
Processing
Finance/
Accounting
Security
Functions - Manufacturer
Manufacturing
Marketing
Manufacturing
Operations
Production
Control
Quality
Control
Finance/
Accounting
Purchasing
Business Operations Overlap
Operations
Marketing
Finance
Operations Interfaces
Industrial
Engineering
Maintenance
Distribution
Purchasing
Operations
Public
Relations
Legal
Personnel
Accounting
MIS
Trends in Business
• Major trends
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The Internet, e-commerce, e-business
Management technology
Globalization
Management of supply chains
Outsourcing
Agility
Ethical behavior
Other Important Trends
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Ethical behavior
Operations strategy
Working with fewer resources
Revenue management
Process analysis and improvement
Increased regulation and product liability
Lean production
Why Study OM?
• OM is one of three major functions (marketing,
finance, and operations) of any organization.
• We want (and need) to know how goods and
services are produced.
• We want to understand what operations
managers do.
• OM is such a costly part of an organization.
What Operations Managers Do
Plan - Organize - Staff - Lead - Control
The Critical Decisions
• Quality management
– Who is responsible for quality?
– How do we define quality?
• Service and product design
– What product or service should we offer?
– How should we design these products and
services?
The Critical Decisions
• Process and capacity design
– What processes will these products require and in what
order?
– What equipment and technology is necessary for these
processes?
• Location
– Where should we put the facility
– On what criteria should we base this location decision?
The Critical Decisions
• Layout design
– How should we arrange the facility?
– How large a facility is required?
• Human resources and job design
– How do we provide a reasonable work
environment?
– How much can we expect our employees to
produce?
The Critical Decisions
• Supply chain management
– Should we make or buy this item?
– Who are our good suppliers and how many should
we have?
• Inventory, material requirements planning,
– How much inventory of each item should we
have?
– When do we re-order?
The Critical Decisions
• Intermediate, short term, and project
scheduling
– Is subcontracting production a good idea?
– Are we better off keeping people on the payroll
during slowdowns?
• Maintenance
– Who is responsible for maintenance?
– When do we do maintenance?
New Challenges in OM
From
• Local or national
focus
• Batch shipments
• Low bid purchasing
• Lengthy product
development
• Standard products
• Job specialization
To
 Global focus
 Just-in-time
 Supply chain
partnering
 Rapid product
development,
alliances
 Mass customization
 Empowered
employees, teams
The Challenge of Social Responsibility
Increasing emphasis on business and
social responsibility
Where are the OM Jobs
Competitiveness:
How effectively an organization meets the
wants and needs of customers relative to
others that offer similar goods or services
Businesses Compete Using Marketing
• Identifying consumer wants and needs
• Pricing
• Advertising and promotion
Businesses Compete Using Operations
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Product and service design
Cost
Location
Quality
Quick response
Businesses Compete Using Operations
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Flexibility
Inventory management
Supply chain management
Service and service quality
Managers and workers
Productivity
• Productivity
– A measure of the effective use of resources, usually
expressed as the ratio of output to input
• Productivity ratios are used for
– Planning workforce requirements
– Scheduling equipment
– Financial analysis
Outputs
Productivity =
Inputs
• Partial measures
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output/(single input)
• Multi-factor measures
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output/(multiple inputs)
• Total measure
–
output/(total inputs)
Productivity Growth
Productivity Growth =
Current Period Productivity – Previous Period Productivity
Previous Period Productivity
Measures of Productivity
Partial
measures
Multifactor
measures
Total
measure
Output
Labor
Output
Output
Machine Capital
Output
Labor + Machine
Output
Energy
Output
Labor + Capital + Energy
Goods or Services Produced
All inputs used to produce them
Example :
7040 Units Produced
Cost of labor of $1,000
Cost of materials: $520
Cost of overhead: $2000
What is the multifactor productivity?
Solution :
MFP =
Output
Labor + Materials + Overhead
MFP =
(7040 units)
$1000 + $520 + $2000
MFP =
2.0 units per dollar of input
Measurement Problems
• Quality may change while the quantity of inputs and
outputs remains constant
• External elements may cause an increase or decrease in
productivity
• Precise units of measure may be lacking
Productivity Variables
• Labor - contributes about 10% of the annual increase
• Capital - contributes about 32% of the annual increase
• Management - contributes about 52% of the annual
increase
Key Variables for Improved Labor
Productivity
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Basic education appropriate for the labor force
Diet of the labor force
Social overhead that makes labor available
Maintaining and enhancing skills in the midst of rapidly
changing technology and knowledge
Service Productivity
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Typically labor intensive
Frequently individually processed
Often an intellectual task performed by professionals
Often difficult to mechanize
Often difficult to evaluate for quality
The End