Operations Management
An Overview
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APICS PROVIDENCE CHAPTER
FEBRUARY 19,2015
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A Simple Test
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 Write down [silently!], two numbers that add up to
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Question for YOU
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 In typical APICS exam style:
1. Is Operations Management a:
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A. Science
B. Art
C. Figment of our imagination
D. None of the above
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Operations Management is:
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1) The planning, scheduling, and control of activities
that transform inputs into finished goods and
services.
2) A field of study that focuses on effective planning,
scheduling, use and control … covers the concepts of
engineering [design, industrial, quality], IT,
production, inventory, accounting …
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APICS Dictionary, 13th edition
APICS Principles of Operations Management
Series
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 Principles of Operations Planning
 Principles of Manufacturing Management
 Principles of Manufacturing Operations
 Principles of Inventory Management
 Principles of Distribution & Logistics
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Typical Organization Chart
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OM’s Transformation Process
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OM’s Objective
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Attain the correct customer service
AND
Maintain the optimal operations efficiency
AND
Optimize the investment in inventory
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Goods & Services
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 Manufacturing  Services
 Tangible product
 Intangible product
 Product can be
 Product cannot be
inventoried
 Low customer contact
 Longer response time
 Capital intensive
inventoried
 High customer contact
 Short response time
 Labor intensive
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Growth of the Service Sector
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 Service sector growing
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to 50-80% of non-farm
jobs
Global competitiveness
Demands for higher
quality
Huge technology
changes
Time based
competition
Work force diversity
OM Decisions
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Today’s OM Environment
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 Customers demand better quality, greater speed,
and lower costs
 Companies implementing lean system concepts – a
total system approach to elimination of waste
 Recognized need to better manage information
using ERP expanded to the fully integrated
enterprise: CRM and SRM
 Increased cross-functional decision making
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OM in Practice
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 OM has the most diverse organizational function
 Manages the transformation process
 OM has many faces and names such as;
 V. P. operations, Director of supply chains,
Manufacturing manager
 Plant manger, Quality specialists, etc.
 All business functions need information from OM
in order to perform their tasks
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Business Information Flow
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OM Across the Organization
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 Most businesses are supported by the functions of
operations, marketing, new product engineering and
finance
 The major functional areas must interact to achieve
the organization goals
 Operations Management must include key customers
and key suppliers
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Summary
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 Operations management covers the entire supply
chain!
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Z
 Anthony Zampello, CPIM, CSCP
 Consultant, Educator {APICS Master instructor:
CPIM, CSCP & Lead Instructor: Principles of
Operations Management}
 Cell phone: 401.651.0746
 z@zampelloandassociates.com
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