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OPERATION AND OPERATIONS MANAGEMENT All organizations have operations A manufacturing company may conduct operations in a foundry mill or factory Our interest is in the management of operations or operations management OM including the usual management cycle of planning implementing and monitoringcontrolling The driving force for OM must be an overriding goal of continually improving service to customers where customer means the next process as well as the final external user Since there is an operation element in every function of the enterprise all people in all jobs in every department of the organization should team up for improvement of there own operations management elements Teaming Up with Customers What happens when suppliers and customer are disconnected Consider design work for example Whether we speak of goods or services time- and distance separation in the supplier-customer connection invites trouble Question Whats your Job Question But isnt your job to serve the customer In grocery stores where the supplier-relationship is immediate the operations manager system is hard pressed to maintain a customer focus The customer is the next process or where the work goes next A buyers customer is the associate in the department to whom the purchased item goes a cost accountants customer is the manager who uses the accounting operations-where the design will be produced or the service provided It is also clear that throughout the organization people not only have customers they are customers Lets turn our attention to what customers want A Short List of Basic Customer Wants The requirement is a recipients or customers view of a good or service A close partnership with the customers actual requirements A close partnership with the customer helps create good specifications increasing the suppliers ability to fulfill the customers needs What else do customers want Customers have six requirements of their providers High levels of quality High levels of service Low costs OPERATIONS STRATEGY An organizational commitment with wide ranging effects such as continuing
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