Operation Mangment
DSME 2030 Operations Management
Introduction to Operations Management Sean Zhou CUHK Business School CUHK
DSME 2030
Page 1
Why is
so Successful?
Founded in 1971, based in Memphis, Tennessee, with $44.3 billion annual revenue in 2013 Serve 220 countries and regions, 300 thousand employees Deliver 3.4 million packages daily with 654 planes and 43,000 trucks Multiple divisions/operating units: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services Fast and reliable On-time deliveries Relatively low cost Information technology http://mediacenter.fedex.designcdt.com/node/358 DSME 2030
Page 2
Zara
A chain of fashion stores owned by Inditex, Spain’s largest apparel manufacturer and retailer 2004, Inditex reported sales of 13 billion euros from more than 2,200 outlets in 56 countries Take a design from drawing board to store shelf in just two weeks, compared with the industry average of more than 6 months Responsiveness of its supply chain gives Zara a major competitive advantage Combination of flexible and quick sources in Europe and low cost sources in Asia Produce batches of clothing in small quantities
DSME 2030
Page 3
Definition Of Operations Management
Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary goods and services Depending on the context, the term of operations management is interchangeable with following terms: Operations Operations and supply management (OSM) Operations and supply chain management (OSCM)
DSME 2030
Page 4
Operations As An Essential Functional Field
Essential functional field in an organization: Marketing – generating demand, selling, promotion Operations – creating and delivering the goods/services Finance/Accounting – tracking how well the organization is doing, pays bills, collects the money An Organization
Finance /Accounting
DSME 2030
Operations
Introduction to Operations Management Sean Zhou CUHK Business School CUHK
DSME 2030
Page 1
Why is
so Successful?
Founded in 1971, based in Memphis, Tennessee, with $44.3 billion annual revenue in 2013 Serve 220 countries and regions, 300 thousand employees Deliver 3.4 million packages daily with 654 planes and 43,000 trucks Multiple divisions/operating units: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services Fast and reliable On-time deliveries Relatively low cost Information technology http://mediacenter.fedex.designcdt.com/node/358 DSME 2030
Page 2
Zara
A chain of fashion stores owned by Inditex, Spain’s largest apparel manufacturer and retailer 2004, Inditex reported sales of 13 billion euros from more than 2,200 outlets in 56 countries Take a design from drawing board to store shelf in just two weeks, compared with the industry average of more than 6 months Responsiveness of its supply chain gives Zara a major competitive advantage Combination of flexible and quick sources in Europe and low cost sources in Asia Produce batches of clothing in small quantities
DSME 2030
Page 3
Definition Of Operations Management
Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary goods and services Depending on the context, the term of operations management is interchangeable with following terms: Operations Operations and supply management (OSM) Operations and supply chain management (OSCM)
DSME 2030
Page 4
Operations As An Essential Functional Field
Essential functional field in an organization: Marketing – generating demand, selling, promotion Operations – creating and delivering the goods/services Finance/Accounting – tracking how well the organization is doing, pays bills, collects the money An Organization
Finance /Accounting
DSME 2030
Operations