Operation Management
 History of Management
 Why Study Operations Management
 Bridge between Management and Engineering
 Manufacturing and Service
 Production and Services Growth in Malaysia
 Key Areas of Responsibility for an Operations
Manager

Key Decision Areas for Operations Managers
5W2H Approach
 What :
 Why:
 When:
 Where:
 How much:
 How:
 Who:
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Decision Making in Operation
Management
 1. Models
 2. Quantitative approaches
 3. Analysis of trade-offs
 4. Systems approach
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Operations Management as
Nucleus in the Organizations
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Current Issues in OM?
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Functions within an Organization
 Operations and Marketing
 Finance
 Historical Evolution of Operations Management
 Current Issues in Operation Management
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Meanings of Competitiveness,
Strategy and Productivity
 How Organization Compete against each other
 Price
 Quality
 Product Differentiation
 Flexibility
 Time
 Competitiveness
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How Organizations can gain
Competitive Advantage
 1. Marketing
 2. Finance
 3. Operations
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Common Reasons why Organizations
Fail
 Too much emphasis on short-term financial
performance.
 Failing to take advantage of strengths and
opportunities.
 Failing to recognize competitive threats.
 Neglecting operations strategy.
 Too much emphasis in product and service design and
not enough on improvement.
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Common Reasons why Organizations
Fail
 Neglecting investments in capital and human
resources.
 Failing to establish good internal communications.
 Failing to consider customer wants and needs.
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Mission/Strategy/Tactics
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Mission/Strategy/Tactics
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Operations Strategy
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Operations Strategy
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Relationship between
Operations and Organizational
Strategy
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Logistics Management?
 The supply chain is about “moving” – or
“transforming” – raw materials and ideas into products
or services and getting them to customers.
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What Is Logistics Operations?
 Logistics operation is a vital part of any business
supply chain concerned with the flow of products from
the producer or supplier to the consumers.
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