●o° Intro to Business ●●●●●●●●●00●● Operations Management
Operations Management Intro to Business
Operation ■■■■■■ ■■■■■■ ■■■■ ■■ ■■ 目■口■■ the process of making goods and services available The key diference between goods production and services operations: direct customer involvement 2
2 Operation ▪ the process of making goods and services available ▪ The key difference between goods production and services operations: direct customer involvement
Operations Globalization ■■■■■■ ■■■■■■ ■■口■■ Global competition has made production faster-paced and more complex New technologies make machines that run cleaner, faster and safer and that operate on a global scale With the Internet, producers of both services and goods can integrate their production with those of far-off suppliers and customers 3
3 Operations Globalization ▪ Global competition has made production faster-paced and more complex ▪ New technologies make machines that run cleaner, faster and safer and that operate on a global scale. ▪ With the Internet, producers of both services and goods can integrate their production with those of far-off suppliers and customers
Employment in Goods and Service sectors Although ernpoynent Service sector among U.S. 80 goods producers has flattened out, growth in servce dustries he risen to 107 Tion 81 percent of the total Goods-Production Sector 84868890929496980001
4 Employment in Goods and Service Sectors
Shanghai-Employment-Industry ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ year 1st 2nd 3rd 2005 61.02 322.33 479.97 2004 67.29 315.97 453.61 2003 73.72 317.12 422.21 2002 84.24 320.93 386.87 2001 87.18 309.91 355.17 Unit:10.000 ShanghaistatisticsBureauhttp://www.stats-sh.gov.cn 5
5 Shanghai-Employment-Industry year 1st 2nd 3rd 2005 61.02 322.33 479.97 2004 67.29 315.97 453.61 2003 73.72 317.12 422.21 2002 84.24 320.93 386.87 2001 87.18 309.91 355.17 Unit: 10,000 Shanghai Statistics Bureau, http://www.stats-sh.gov.cn
Employment by Industry-SH ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ 600 500 400 Ist 300 2nd 200 100 Unit:10.000 ShanghaiStatisticsBureau,http.://www.stats-sh.gov.cn 6
6 0 100 200 300 400 500 600 2001年 2002年 2003年 2004年 2005年 1st 2nd 3rd Employment by Industry -SH Unit: 10,000 Shanghai Statistics Bureau, http://www.stats-sh.gov.cn
GDP from Goods and services ■■■■■■ ■■■■■■ ■■■■ 目■■■■■■■■ Although the service sector is now amost 33 percent greater than the goods-producing sector, goods producers still use only 19 percent of the workforce to ate more the 40 percent of the country's GDP 54,000 Service Sector Goods- Production Sec tor 52,00 51,000 8486889092949698'00'01
7 GDP from Goods and Services
The Importance of Operation ■■■■■■ ■■■■■■ ■■■■ 目■■■■■■■■ Availability of goods and services Satisfying customer needs by providing goods and services Economic well-being(living standards GDP: market value of goods and services produced Profitability(efficiency) Profit sales revenue-costs costs: money spent on resources 8
8 The Importance of Operation ▪ Availability of goods and services ▪ Satisfying customer needs by providing goods and services ▪ Economic well-being (living standards) ▪ GDP: market value of goods and services produced ▪ Profitability (efficiency) ▪ Profit = sales revenue – costs ▪ costs: money spent on resources
oo. Operations Management Systematic direction and control of the processes that transform resources into finished products a that create value for and provide benefits to customers
Operations Management Systematic direction and control of the processes that transform resources into finished products that create value for and provide benefits to customers
Operations Management ■■■■■■ ■■■■ 目■口■■ The goal Higher productivity(efficiency) Higher Quality Faster(On-going) improvement 10
10 Operations Management: ▪ The goal: ▪ Higher productivity (efficiency) ▪ Higher Quality ▪ Faster (On-going) improvement
