Operations Management, Avantages and Challenges

By: S.M. Al ShahriarID:120304790

Definition of Operation Management

Set of activities that creates value in the form of goods and services by transforming input into output.

Set of activities are design, direction, and control of process that transforming input(raw materials) into product(finished goods)/service for external & internal customers

Operation Management as Process

Operation Management deal with PROCESS that produce “Goods” & “Service”

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ADD VALUE ?

OUT PUT

IN P

UT

Operation Management as Process

PROCESS should be design with according to customer “Needs” and “Wants”

CustomerInternal

External

Value Chain Management

It is about management of “value added activities” in the whole supply chain (supply chain management)

Process must add value to their customers Activities that are necessary for adding values

Advantages of Operation ManagementTo assess possible outcomes for the company.To contribute the success of an organizationTo achieve unique competitive advantagesTo increases productivityTo reduce cost of production To develop product/service’s quality/

performance

Trends & Challenges in managing operation

ProductivityGlobal competitionTechnologies changesEnvironmental issuesEthicalDiversity

Trends & Challenges in managing operation “5 Competitive Forces that Shape Strategy”

Question…

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