Responsiveness of its supply chain gives Ezra a major competitive advantage 0 Combination of flexible and quick sources in Europe and low cost sources in Asia 0 Produce batches of clothing in small quantities Page 3 Definition Of Operations Management 0 Operations management (MM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary goods and services 0 Depending on the context, the term of operations management is interchangeable with following terms: 0 Operations 0 Operations and supply management (GSM) 0 Operations and supply chain management (SCM) Page 4 Operations As An Essential Functional Field 0 Essential functional field in an organization: 0 Marketing – generating demand, selling, promotion 0 Operations – creating and delivering the goods/services Finance/Accounting – tracking how well the organization is doing, pays bills, collects the money An Organization Finance [AccountingOperations Marketing Page 5 Operations are Everywhere 0 McDonald’s 0 Producing burgers, French flies, ice creams; purchasing raw material and produces from suppliers; catering dine-in customers; providing delivery services and drive-through services 0 General Motor 0 Designing and manufacturing cars, processing dealer payments, hiring employees, developing advertising campaigns; providing loan services 0 Prince of Wales Hospital 0 Admitting and treating patients, billing insurances, hiring/scheduling nurses, restocking medical supplies, scheduling doctor appointments, MR., operating rooms 0 Operations in financial institutions Credit servicing and process in retail banks; trade processing and report production in investment banks; client servicing, position and order management of asset managers DOSE 2030 Page 6 Why Study Operations Management 0 MM is such a critical part of an organization 0 It involves all the activities of creating and delivering goods and services 0 It is an area where the organization spends most of its budget (typically > 70%) 0 Operations activities are recurring 0 MM career is promising, rewarding page 7 Page 8 MM career In IT Era IT Knowledge Knowledge & Skills Business Knowledge Computer ScientistIT Consultant Stalwart Engineer System Functional Analyst Business Specialist Application Consultant Developer Computer Science Information Technology Operations Management Accounting Finance Marketing Page 9 Differences Between Services And Goods 0 Unique characteristics of services (compared to goods) 0 Intangible 0 Interaction with customers 0 Heterogeneous 0 Perishable and time dependent 0 Package of features 0 A product offering is typically a combination of goods and services page 10 Goods-Service Continuum Fast Moving Consumer Goods Computer Installed carpeting Fast-food meal Restaurant meal/auto repair Hospital care Advertising agency/ Marketing service Education Counseling Pure Goods Pure Services Page 1 1 Five Categories of Operations Processes 0 Planning: anticipating the demands, how to meet the demand with resources, how to quantify the metric 0 Sourcing: selecting suppliers that will deliver the goods and services that are needed to create products 0 Making: producing products, or providing services 0 Delivering: logistics and information systems for product movement and order receiving 0 Returning: returns from customers, supports/follow- ups D page 12Example of Operations Processes – Apparel Industry 0 Consider the operations of a brand name apparel company (such as Ezra or Gap) 0 Planning: 0 Sourcing: 0 Making: 0 Delivering: 0 Returning: DOSE 2030 page 13 Example of Operations Processes – Trucking Industry 0 Consider the operations of a Hong Kong-based trucking company with cross-border business 0 Planning: 0 Sourcing: 0 Making: 0 Delivering: 0 Returning: DOSE 2030 Page 14 Apple Case: Company Achievements 0 Apple is a leading technology company, with hot sellers including Imax, pod, phone, pad, 0 Apple enjoys profit margins that are much higher than the industry averages (Link) 0 In August 2011, Apple became the world’s number one in market capitalization

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