What is Operations Management?

Production or
Operations is the
creation of goods and
services.

Operations
Management (OM) - is
the set of activities that
creates goods and
services by transforming
inputs into outputs
REMEMBER:
Management is
planning
staffing
organizing
controlling
leading
What is OM?
Operations Management is concerned
with how organizations develop,
design, produce, and deliver goods
and/or services that satisfy and
preferably exceed customer
requirements and expectations.
Commercial Bank
Operations
Finance
Marketing
Teller Scheduling
Check Clearing
Collection
Transaction
processing
Facilities
design/layout
Vault operations
Maintenance
Security
Investments
Security
Real estate
Loans
Commercial
Industrial
Financial
Personal
Mortgage
Accounting
Auditing
Trust Department
Airline
Operations
Ground support
equipment
Maintenance
Ground Operations
Facility
maintenance
Catering
Flight Operations
Crew scheduling
Flying
Communications
Dispatching
Management science
Finance/
accounting
Accounting
Payables
Receivables
General Ledger
Finance
Cash control
International
exchange
Marketing
Traffic
administration
Reservations
Schedules
Tariffs (pricing)
Sales
Advertising
Manufacturing
Operations
Facilities
Construction; maintenance
Production and inventory control
Scheduling; materials control
Quality assurance and control
Supply-chain management
Manufacturing
Tooling; fabrication; assembly
Design
Product development and design
Detailed product specifications
Industrial engineering
Efficient use of machines, space,
and personnel
Process analysis
Development and installation of
production tools and equipment
Finance/ accounting
Marketing
Disbursements/
credits
Receivables
Payables
General ledger
Funds
Management
Money market
International
exchange
Capital
requirements
Stock issue
Bond issue
and recall
Sales
promotion
Advertising
Sales
Market
research
Operations: Car sharing company
Buzz group: Zipcar

You are creating a company similar to
Zipcar here at NAU
 What
are the operations decisions and issues
that you should consider?
 What
will you call your company?
Operations decisions and issues
Location of the cars
Reservation process
How will you get your cars?
How many cars do you need?
What type of cars?
Maintenance – scheduling, what happens if it breaks down, who is going to do it?
Roadside assistance
Cleaning and detailing
Staff office locations
Payment options
Operations decisions and issues
Location of parking places
Car maintenance & Cleanliness – scheduling; staffing
Technology – staffing; development
Location of the office
Regulations for car use
Alcohol related issues - processes
Collections
Security system – development and managing
Insurance - processes
Community relationship – road assistance
Number of cars/types of cars
Operations decisions and issues
Operations decisions and issues
10 Critical OM Decisions
vice and/or product
ign
ality management
ocess design and
acity
cation
out design
man resources/job
ign
pply-chain
nagement
Information
systems
Marketing
Operations
Accounting
Finance