Situatational Theory
Introduction to Operations Management
Ealing Hammersmith West London College MBA Ops 103
Lesson objectives
After this session, you should be able to • Discuss the principle of Operations as transformation • Identify Operations Performance Objectives • Evaluate the role of Operations Management in the overall business strategy of the organisation • Appraise the contribution of Operations Management with other key functional areas of the organisation
Introduction to Operations Management
EVOLUTION OF OPERATIONS MANAGEMENT
Ops 103
• Why do we study operations management?
• Where has operations management come from? • How has the business environment changed that operations management and operations management changed with it?
Some history
• Operations management emerged as a formal field in the 1950s and 1960s
Some history
Before Industrial Revolution mid 18th century • Individual craftsmen
• Products expensive to produce
Industrial Revolution • Steam engine (Watt 1764) • Interchangeable parts (Eli Whitney 1790) • Division of labour (Adam Smith 1776) • Volume production • Mechanization • Low-skilled labour doing simple tasks
Evolution of operations management
• Taylor – “scientific management” & time study
• Henry Ford – assembly line 1913
• WW I – Logistics, weapons systems design
• Computers for inventory management and scheduling
Introduction to Operations Management
DEFINITIONS OF OPERATIONS MANAGEMENT
What is operations management
• “...the activity of managing the resources which are devoted to the production of goods and services” (Slack, Chambers, Johnston, 1995)
• Operations management uses resources / inputs appropriately to create outputs to fulfil defined market requirements
Operations as transformation
• What are transforming resources?
• What are transformed resources?
• How and where are resources transformed? Physically? Physiologically? Psychologically? By ownership?
Operations as transformation
Transformed resources
Ealing Hammersmith West London College MBA Ops 103
Lesson objectives
After this session, you should be able to • Discuss the principle of Operations as transformation • Identify Operations Performance Objectives • Evaluate the role of Operations Management in the overall business strategy of the organisation • Appraise the contribution of Operations Management with other key functional areas of the organisation
Introduction to Operations Management
EVOLUTION OF OPERATIONS MANAGEMENT
Ops 103
• Why do we study operations management?
• Where has operations management come from? • How has the business environment changed that operations management and operations management changed with it?
Some history
• Operations management emerged as a formal field in the 1950s and 1960s
Some history
Before Industrial Revolution mid 18th century • Individual craftsmen
• Products expensive to produce
Industrial Revolution • Steam engine (Watt 1764) • Interchangeable parts (Eli Whitney 1790) • Division of labour (Adam Smith 1776) • Volume production • Mechanization • Low-skilled labour doing simple tasks
Evolution of operations management
• Taylor – “scientific management” & time study
• Henry Ford – assembly line 1913
• WW I – Logistics, weapons systems design
• Computers for inventory management and scheduling
Introduction to Operations Management
DEFINITIONS OF OPERATIONS MANAGEMENT
What is operations management
• “...the activity of managing the resources which are devoted to the production of goods and services” (Slack, Chambers, Johnston, 1995)
• Operations management uses resources / inputs appropriately to create outputs to fulfil defined market requirements
Operations as transformation
• What are transforming resources?
• What are transformed resources?
• How and where are resources transformed? Physically? Physiologically? Psychologically? By ownership?
Operations as transformation
Transformed resources