OPERATIONS MANAGEMENT & QUALITY FBB 1213 | Introduction to Business Prepared by Nalini Gebril
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Topics to be discussed… • Operations / Production, Service, Goods • • Resources needed in production • • Utility, Creating value through operations • • Business strategy as the driver of operations • • Location planning, Layout planning • • Quality planning • • Total Quality Management • • Supply Chain Management ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide 3
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Operations / Production, Service, Goods • Operations / Production: Activities in making products (goods & services) for customers. • • Operations / Production Management: Systemic direction and control of the processes that transform resources into finished products that create value and provide benefits to customers. • • Service: Activities producing intangible products, such as entertainment, transportation, education. • • Goods: Activities producing tangible products, such as radios, textbook, computers. ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Resources needed in production • • There are three main resources needed in productions. • 1. Men • 2. Machines • 3. Materials ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide 5
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Utility, Creating value through operations • • Utility: A product’s ability to satisfy a human want or need. • • Creating value through operations: It adds customer value by providing utility. • 1. Form utility • 2. Time utility • 3. Place utility ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide 6
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business strategy as the driver of operations • • There is no one standard way for doing production. Rather a company selects the kind of production that best achieves its larger business strategy. Company Strategy What they do TOYOTA Quality Cars perform reliably, have an appealing fit and finish. FEDEX Dependability Every delivery is fast and on time, as promised. ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide 7
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Location Planning • • Location planning can help the profitability of the firm. The location of one’s facility affects labour and transportation costs. • • Consumer services concentrate on being located near customers. Such as Mc Donald's, are located in areas with high traffic –shopping mall. ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Layout Planning • • Because of proper layout planning a company can respond efficiently to demand for more and different products. • Quality Planning • • Every operations plan includes activities for ensuring that products meet the firm‟s and customers‟ quality standard. • • Planning for quality begins when products are being designed. Early in the process, goals are established for both performance and consistency. ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Quality Planning… • • Performance-refers to how well the product does what it is supposed to do. For loyal buyers of Godiva premium chocolates, performance includes such sensory delights as aroma, flavor, texture. Performance helps Godiva remain one of the world‟s top brand. • • Consistency-the sameness of product quality from unit to unit. Toyota automobile owners, enjoy high consistency with every purchase. ( that‟s why Corolla and Camry –best selling cars in US) ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Total Quality Management • The sum of all activities that are devoted to getting a high-quality good/service to the marketplace. • • Tools for TQM-Quality improvement teams, Value added analysis, The ISO series. • Supply Chain Management • • Supply Chain Management looks at the chain as a whole to improve the overall flow through a system composed of companies working together. Because customers ultimately get better value, supply chain management gains competitive advantage for each of the chain‟s members. • • An innovation supply chain strategy was Michael Dell‟s vision when he established Dell Inc. Dell‟s concept improves performance by sharing information among chain members. Dell‟s long term productions plans and up-to-the minutes sales data are available to suppliers via the internet. ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business Think & React • “Quality is not an act, it is a habit. ”-Aristotle • “Quality means doing it right when no one is looking. ”-Henry Ford • “You don‟t know how to improve operations if you don‟t know what you‟re aiming for. ”-Yogi Berra • “An investment in knowledge pays the best interest. ”-Ben Franklin ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
FACULTY OF BUSINEESS MANAGEMENT & GLOBALIZATION FBB 1213 | Introduction to Business End of Lecture ALL RIGHTS RESERVED No part of this document may be reproduced without written approval from Limkokwing University of Creative Technology Worldwide
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