BJMP 5023
OPERATION AND
TECHNOLOGY MANAGEMENT
Introduction to Operations
Management
Presentation Outline
1. Operations Management (OM) in Workplace
2. Goods and Services
3. Customer Benefit Packages (CBPs)
4. Processes and Value Chains
5. Conclusion
Operations Management
(OM) in Workplace
What do operations managers do?
Translate market knowledge of customers to design and
manage goods, services and processes
Help organizations do more with less.
Ensure resources (labor, equipment, materials, information) and
operations are coordinated.
Exploit technology to improve productivity.
Building quality into goods, services and processes
Determine resource capacity and schedules
Create high-performance workplace
Continue to learn and adapt the organization to global and
environmental changes.
OM in Workplace cont.
Process manager (credit card division) in JPMorgan Chase (banking
and financial service firm)
– supervise / manage production of plastic card
1) Planning and budgeting 2) Managing Inventory
Represent the plastic card production Supervise the management of
area in all meetings. inventory for items.
Develop annual budgets and staffing
plans. *plastic blank cards, inserts such as
Watch technology that might affect the advertisements, envelopes, postage, and
production of plastic credit cards. credit card rules and disclosure inserts.
3) Scheduling and capacity 4) Quality Control
Daily to annual scheduling of all Emboss card with accurate customer
resources (equipment / people / information.
inventory) needed to issue new credit Quick deliver of card to the customer.
cards.
Goods and Services
Goods Services
Physical product that you can see, Any primary or complementary activity
touch, or possibly consume. that does not directly produce a physical
product.
Durable > 3 years
Non-durable < 3 years “Non-goods” part of a transaction
between customer and supplier
Similarity
Provide value and satisfaction to customers who purchase and use them
Differences
Tangible Intangible
No location specific as long as goods Service facility need to be conveniently
can be delivered to customers in timely located.
fashion.
Customer Benefit Packages (CBPs)
CBP definition
Set of tangible (goods-content) and intangible (service-content) features
that the customer recognizes, pays for, uses, or experiences.
CBP simple description
A CBP fulfills the customer needs and demands
Achieve by combination of primary and peripheral goods / services
Variant also is included in the CBP. It is an additional attribute that is
different from the ordinary CBP theme. It can be in the form of good or
service.
Customer Benefit Packages (CBPs)
cont.
Primary
Goods McDonald’s CBP
Primary
Services
Burgers,
drinks, desserts Quick / friendly
customer experience
Customer Benefit Packages (CBPs)
cont.
Peripheral
Goods Primary
Goods McDonald’s CBP
Happy Meal
Toys Primary
Services
Burgers,
drinks, desserts Quick / friendly
customer experience
Customer Benefit Packages (CBPs)
cont. Peripheral
Peripheral Services
Goods Primary
McDonald’s CBP Play Area
Goods
Happy Meal
Toys Primary
Services
Menu Variety
Burgers,
drinks, desserts Quick / friendly
customer experience
Food
Drive Thru Online Service Delivery
Free WiFi
Customer Benefit Packages (CBPs)
cont. Peripheral
Peripheral Services
Goods Primary
McDonald’s CBP Play Area
Goods
Happy Meal
Toys Primary
Services
Menu Variety
Burgers,
drinks, desserts Quick / friendly
customer experience
Variant
McCafe Food
Drive Thru Online Service Delivery
Free WiFi
Customer Benefit Packages (CBPs)
cont. Peripheral
Peripheral Services
Goods Primary
McDonald’s CBP Play Area
Goods
Happy Meal
Toys Primary
Services
Benefits
- Great experiences for every age Menu Variety
- Ever evolving to meet customer
Burgers,
needs
drinks, desserts Quick / friendly
customer experience
Variant
McCafe Food
Drive Thru Online Service Delivery
Free WiFi
Processes and Value Chains
Process Value Chain
network of facilities and
processes that describes the
a sequence of activities that is
flow of goods, services,
intended to create certain
information and financial
result such as physical goods,
transactions from suppliers
service or information
through the facilities and
process that create goods and
services and deliver them to
customer.
Processes and Value Chains cont.
Three key processes in business
Value Considered the primary and most important process
Creation Process Focused on primary goods / services
Direct contact with customer / provide value to customer directly
Designed to support the primary processes,
Support Examples – purchase materials and supplies, customer service /
Process support, and dispatching / delivery.
Manage the activities of primary and support processes.
General Measure, monitor, and control business activities, such as human
Management resource management, and quality control measurements.
Process
Processes and Value Chains cont.
Three key processes in business
Value Considered the primary and most important process
Creation Process Focused on primary goods / services
Direct contact with customer / provide value to customer directly
Designed to support the primary processes,
Support Examples – purchase materials and supplies, customer service /
Process support, and dispatching / delivery.
Manage the activities of primary and support processes.
General Measure, monitor, and control business activities, such as human
Management resource management, and quality control measurements.
Process
Processes and Value Chains cont.
Value Chain of Pizza Restaurant
Control by
Management
Output Customers /
Suppliers Inputs Processes
Goods / Services Markets
Equipment Order Happy
Information Good pizza
supplier taking customer
Raw Quick
Food Cooking Premium
materials service
wholesaler Final pizza
People / labor
assembly In-store
Bill seating
payment Catering
Conclusion
One do not need the title of “operations manager” to
do operation management. (Every job has some
aspects of operations management)
The idea of operations management will help to get
things done regardless of job scope.
Everyone who manages a process / some business
activity should possess a set of basic OM skills.
THE END…
Thanks for your
attention!!
