1

INDEX

INTRODUCTION 03
CHAPTER I 05
General notions

1.1 Historical origin of operations management

1.2 Conceptual framework 07

1.3 Difference between goods and service 08

1.4 Characteristics of goods and services

1.5 Companies Producing Goods and Services 09

CHAPTER II 10

2.1 Objectives of operations management

2.2 Scope of operations management 11

CHAPTER III 12
Operation management
3.1 Operations management approach
3.2 Company operating cycle 14
3.3 Strategic decisions of operations management
3.4 Operation strategy 23

CONCLUSIONS 24
RECOMMENDATIONS 25
BIBLIOGRAPHICAL REVIEW 26
BIBLIOGRAPHY 27
EXHIBIT 29

2
 INTRODUCTION

This work is prepared with the purpose of raising awareness of the

importance of operations management for companies today.
Currently, companies need someone to guide both productive and
financial activities, as well as marketing, quality and human resources within
them, in order to make important decisions such as deciding the type of
equipment and technology that will be used. for the processes or to decide
the capacity in the inventories that are going to be available.
Thus, operations management is the area within the company that is
responsible for planning, producing or manufacturing and distributing
production goods that meet the specifications, controls and expectations of:
costs, quality, quantity and time, through systematized use. of techniques
and tools of engineering and administration.
The way of managing productive resources (human, financial,
technological, facilities, time, etc.) is crucial for the strategic growth and
competitiveness of the company, through the use of tools, study of methods
and concepts necessary to face and solve problems. production-related
problems.
The truth is that today a growing number of experts agree that, to
survive in today's global economy, world-class performance in the area of
operations is essential, in order to deliver high-quality products. quality and
competitive in terms of costs.
Unlike the old business vision in which departments were separated
(sales, finance, operations and others), today operations are a subsystem
within the organization that covers many areas and in which others are also
immersed, thus being the management of operations the heart of
production.
The increasingly accelerated changes in the social and business
environment require that management methods progressively adapt to a
new reality; Therefore, for a company to obtain the best performance from
its assets and ensure lasting success in the market, it is essential that its

3
operating procedures are well designed and carried out in an effective and
efficient manner.

The integrated management of operations is, increasingly, a

determining factor in improving competitiveness because it allows an
adequate optimization of resources and an increase in efficiency in
response to the needs of the client who, increasingly, is more demanding;
And, to achieve these objectives, an exhaustive analysis of the chain of
operations is necessary that allows us to define improvement actions to
implement the most appropriate solution for each type of company.
A company will only be able to surpass its rivals if it is able to
establish a difference that it can maintain over time; and, in order to achieve
this, Operations Management must take us to the key differentiation factor
of the level of service that the company provides to its customers.
The global nature of competition has generated a radical change in
operations management and the importance that this management has.
This globalization is increasingly intense and operations management has
generated a fundamental competitive factor, from a strategic perspective,
incorporating new technologies into management processes and methods.

4
 CHAPTER I: GENERAL NOTIONS

1.1 Historical origin of operations management

Operations management began to emerge in the Industrial Revolution in 1770,
with events such as the creation of the concept “division of labor” by Adam Smith.
James Watt.
He invented what would mark this revolution, the steam engine.
Eli Whitney
In 1798, he signed a contract with the government to manufacture 10,000
muskets.
He demonstrated that tools could result in standardized parts: The elements of
muskets were interchangeable.
Frederick Taylor
In 1881, as chief engineer at Midvale Steel, he studied process analysis,
beginning the study of time and motion.
He created the principles of efficiency.
Frank and Lillian Gilbreth
Improvement of work methods.
Henry Ford
In 1913, the first assembly line to manufacture the Model T
The unfinished product was moved by conveyor chains
Edwards Deming
He is credited with teaching Japanese quality control methods after World War II.
He used statistical methods to analyze the process.
Their methods involved workers when making decisions

FOCUS ON COST

5
First Concepts (1776 - 1880)
• Job Specialization (Smith)
• Parts Standardization (Whitney)
Stage of Scientific Management (1880 - 1910)
• Production Rhythm Study (Gilbreth)
Mass Production Stage (1910 - 1980)
• Assembly Chain (Ford)
• Statistical Sampling (Shewhart)

FOCUS ON QUALITY
Lean Production Stage (1980 - 1995)
• Just in time
• Total Quality Management
• Baldrige Award
• Kanbans

FOCUS ON CUSTOMIZATION
Large Scale Customization Stage (1995 - 2005)
• Globalization
• Internet
• Enterprise Resource Planning
• International Quality Standards
• Supply Plan Control
• Fast Manufacturing
• Electronic Commerce
See Figure. 1
1.2 Conceptual framework
1.2.1 Management,
1.2.2 Definition
Understood in contemporary terms, it is the procedure for adapting resources of
any kind to those purposes for which the resources have been collected.
For example, companies, public organizations, non-governmental organizations,
etc. The term management can cover a long list of activities, but it always focuses

6
on the efficient use of these resources, to the extent that their returns must be
maximized.

1.2.3 Operations Management

1.2.4 Definition
Operations management can be defined as the design and improvement of
systems that create and produce goods and/or services, and which is dedicated to
the research and execution of all those actions that will generate greater
productivity through planning, organization, direction and control in production,
applying all these individual processes in the best possible way, all aimed at
improving the quality of the product.

Tangible products  industry

Intangible products  services

1.3 Difference between goods and services

ESTATE SERVICES
The product can be transported. The supplier (not the product) can
move

7
 The installation location is important Installation location matters for
for the cost. customer contact
It is usually easy to automate It is usually difficult to transport
Income comes first from the tangible Revenue comes primarily from
product. intangible services.

1.4 Characteristics of the Goods and Services

ESTATE
 Tangible product.
 Consistent definition of the good.
 Separation between consumption and production.
 can be inventoried
 Little interaction with the client .
SERVICES
 Intangible products.
 They are produced and consumed simultaneously.
 They are usually unique
 Great customer interaction
 Inconsistent product definition.
 They are usually based on knowledge
 They usually occur dispersedly
See figure 2

1.5 Companies Producing Goods and Services

Companies that produce goods.
 Agriculture, forestry and fishing companies
(Crops, livestock, agricultural and forestry services, hunting and fishing)

8
  Mining.
(Metal mining, coal mining, oil and gas extraction)
 Construction.
(General Construction Contractors)
 Manufacture.
(Food, tobacco, textile companies, clothing, etc.)
Companies that produce Services
 Transportation and public services
(Railways, local passenger transport, trucks, etc.)
 Wholesale trade.
(Perishable and non-perishable products)
 Services
(Hotels, personal services, business services, etc.)

9
 CHAPTER II: OBJECTIVES AND SCOPE

2.1 OBJECTIVES OF OPERATIONS MANAGEMENT

a) Reduce the time it takes to manufacture products (new and current) and
provide services.

b) Achieve and maintain high quality, with low costs.

c) Incorporate new technologies and control systems.

d) Obtain and train qualified workers and managers.

e) Work effectively with other company functions (marketing, finance,

personnel) to achieve goals.

f) Work effectively with suppliers and new partners, as well as be personable

to customers.

g) Provide well-being to employees (internal customer).

h) Fulfill your responsibility to the community.

i) Profit maximization.

2.2 THE SCOPE OF OPERATIONS MANAGEMENT

The scope of operations management is aimed at the good management of:

10
 Global Operations and Competition Management
 Organization of Competitive Operations
 Operations Strategies Oriented for Competitive Advantage
 Claim Administration
 Product Design Decisions
 Strategy for capacity development
 Location and plant distribution
 Be flexible in innovation to new technologies and the adaptation of
operations in different activities based on:
 Production process design
 Design of the position
 Process quality
 Project management
 Inventory Management
 Operations planning
 Plant administration
 Material flow management

11
 CHAPTER III: OPERATIONS MANAGEMENT

3.1 APPROACH TO OPERATIONS MANAGEMENT

Operations management is responsible for the production of goods and

services within organizations and allows them to achieve their goals through
the efficient acquisition and use of resources. Any type of organization must
have operations management because in this way their profits are
maximized, as well as the satisfaction of the community or the organizations'
clients. Production and Operations Management has been transformed and
continues to do so. Production and operations becoming one of the most
interesting areas of a company.
Operations Management is the area of study that provides the knowledge,
models and tools for decision making in the design, operation and
improvement of the production system.
According to the entrepreneurial approach, it indicates that…” Operations
management is related to the planning and control of a conversion process.
They include the acquisition of inputs and then the verification of their
transformation into products and services desired by customers…”
We also indicate that it is also understood as the administration of production
lines, based on functional areas at the managerial level. The same that is

12
 expressed in the strategic (long-term), tactical (medium-term) and operational
(short-term) decisions that are made in any type of organization. And in turn,
indicate the important role played by the operations manager of the
organization, since it is the
Organizer of material and human resources. And it will depend on good
administrative management through the skills and knowledge that you
develop that allow you to detect, prevent and correct errors in the planning of
operations.
We can say that Operations Management can be defined as “the design,
operation and improvement of production systems that create the company's
primary goods or services.

3.2 COMPANY OPERATIONAL CYCLE

OPERATIONS

HUMAN
RESOURCES

MARKETING
FINANCE

13
3.3 STRATEGIC DECISIONS OF THE ADMINISTRATION OF

OPERATIONS

The main decisions of Operations management are:

1. Design of goods and services.

In the design of goods, products are born, live and die. The changing society puts
them aside, the life of the product is divided into 4 phases:

• Introduction,

• Growth,

• Maturity,

• Decline

The life cycle of a product can be a matter of just hours (for example a
newspaper), months (seasonal fashions), years (for example video cassette), or
decades (Volkswagens).

Regardless of the length of the product life cycle, the operations manager's task is
the same: Design a system that helps introduce new products successfully into the
markets they want to reach.

In the design of services they include, for example: Banks, insurance,

transportation, communications, etc.

The products offered by service companies range from operations

Surgical to a haircut at a hair salon, or a great movie.

The design of services is a challenge since services have characteristics

Unique, remember that service delivery includes interaction with the client.

When the customer participates in the service process, the service provider

It has a menu of possibilities from which the client chooses, for example:

Acquisition of telephone services, such as internet with various bands

14
To choose

2. Quality management.

It is the ability of a good or service to identify and satisfy customer needs.

It is very difficult to quantify.

International Quality Standards

a) ISO 9001

It is a set of quality standards with international recognition,

Developed by the International Organization for Standardization.

To obtain the ISO 9000 certificate, organizations go through a

9 to 18 month process that involves documentation of

Quality procedures, an evaluation and a series of audits of the

Products or services.

b) ISO 14001

It is an Environmental Administration standard, established by the

International Organization for Standardization. ISO 14001 contains 5

Central elements: environmental administration, audits, evaluation of

Performance, labeling, life cycle assessment. The new standard could

Have several advantages:

• A positive public image

• A good systematic approach

• Compliance with regulatory requirements and opportunities for competitive

advantage.

• Reduction in the need for multiple audits.

15
This standard is accepted throughout the world.

3. Process strategy

The process strategy is the best way in which the goods or services can be
produced.

Process Strategy Objective

Its objective is to find a way to produce goods and services that meet

With requirements, customer requirements and specifications, distinction,

Product differentiation in terms of cost and other product restrictions

Operative administration.

Four Process Strategies

All goods and services are made using one of the following

Variations:

a) Focus on the Process.

It refers to the production facilities which are organized

Around processes to facilitate low volume production and

High variety.

• For example: In a factory it could be the soldier departments,

Polished and painted.

b) Repetitive approach

It refers to the classic assembly line and uses modules. The modules are

The parts that are previously prepared.

16
• For example: Automobile assembly, Fast food companies

c) Focus on the product

This approach is based on producing the product in large quantities and

In little variety.

• For example: Like glass, light bulbs, beer, screws, rolls of paper, etc.

d) Focus on mass customization

It is fast, low-cost production that addresses constant changes

On the personal wishes of customers.

• For example: The styles of vehicles, The types of bicycles, Cereals

For breakfast, LED televisions.

4. Location strategies

The object of the location strategy is to maximize the benefit of the

Location for the company

Factors Affecting Location Decisions

These will be the critical success factors needed to achieve an advantage

Competitive:

• For example: The critical success factors of a country would be:

1) Political Risks.

2) Cultural aspects.

3) Location of markets.

4) Availability of supplies and communications.

5) Exchange rate.

17
 5. Facility distribution strategy.

Facility layout strategy is the most efficient and effective way to

Know how a facility can be distributed in such a way that it provides

A product quickly, reducing labor and waste,

This also includes machinery, office furniture, etc.

For example:

• The office distribution seeks to maximize the flow of information

• The distribution of the stores focuses on the exhibition of the product

• The warehouse distribution attempts to optimize the exchange between the

Storage space and material handling costs

Distribution Types

Layout decisions include the best placement of machines (in

Production), desks (in offices). Effective distribution facilitates the flow of

The materials, people and information between the areas.

To achieve this, the following types of distribution are developed:

to. Office Distribution: Positions workers

b. Store layout: Allocates shelf space and responds to

Customer behavior.

c. Warehouse Distribution: Addresses the exchanges that occur between space

And materials handling.

d. Fixed position distribution: Study the distribution requirements of

Large projects, such as in the case of banks and

18
Buildings.

and. Process-oriented distribution: Deals with low-cost production

6. Human Resources.

In administration, human resources are called the set of

Employees of an organization.

Objective of Human Resources Strategy

The objective of human resources strategy is to manage the workforce

Work and design the work with the purpose of employing the people of the

Most effective and efficient way possible.

So when we focus on a human resources strategy,

We want to make sure that people:

• Are used efficiently.

• Have a reasonable quality of life at work in an atmosphere of

Mutual commitment and trust.

The requirements to develop a human resources strategy are:

1) Manpower planning

2) Work design

3) Labor standards

7. Supply chain management.

The strategies for the supply chain are:

1) Negotiate with many suppliers,

In this strategy we make suppliers compete with each other,

We as a company almost always choose the one who presents us with the

19
Lowest offer.

2) Few suppliers,

This strategy involves looking for long-term relationships with some stories

Dedicated providers as they are more likely to understand

The broad objectives of the company that hires them.

3) Vertical Integration,

With this strategy, the goods or services that were previously produced must be
produced.

They bought, or bought from a supplier or distributor.

Supplier Selection

Companies must select the appropriate suppliers that

Provide the necessary goods and services. Supplier selection considers

Many factors such as delivery, quality and performance.

Supplier selection has 3 stages:

1) Supplier Evaluation

At this stage you want to find potential suppliers and

Determine what chance they have of becoming good suppliers.

This stage requires making evaluation criteria such as

The weightings.

The selection of good suppliers is important because if not

Supply chain efforts are wasted.

What you want is to preferably have a long-term supplier.

2) Supplier Development

20
When the supplier has been selected, it must be integrated into the system,

Supplier development includes everything from training to assistance in

Engineering and production to procedures for the transfer of

Information.

3) Negotiations

Supply Chain Approach to Developing Relationships

Contractual with suppliers. They tend to focus on quality,

Delivery and cost.

8. Inventory management.

Inventories are of 4 types:

1) Raw material

2) Work in progress

3) Maintenance, Repair and operation

4) Finished goods

9. Programming.

It is an operations research instrument designed to assign

Limited resources between various activities that are going to be carried out.

10. Maintenance

It is the activity that is responsible for maintaining the quality of the service they
provide.

21
Machines, and which will always be associated with the generation of value, are

I could also say that it is a resource that provides added value to the

Processes.

Types of maintenance

We have 2 types of maintenance:

to. Preventive Maintenance

This is carried out to obtain proper functioning of the

company assets and minimize their probability of failure through

From predictive maintenance, scheduled maintenance, maintenance

improvement.

b. Corrective maintenance

This is carried out after a failure occurs, these are actions

Unscheduled events that are performed in case of breakdowns, this is not really

A maintenance but a repair.

3.4 Operations strategy

3.4.1Definition

Establishes broad policies and plans to use the company's resources to support its
long-term competitive strategy. It refers to the design of the process (technology
selection, measurement of process performance, in-process inventories and their
location) and the infrastructure to support it (planning and control logistics, quality
assurance methods, compensation methods and organization of the operations
function).

See figure 3

22
The success factors of the operations strategy lie in identifying which are the
priority alternatives, in understanding the consequences of each alternative and in
managing the resulting negotiations well (In the 1950's the USA focused on
production and Japan on quality. ).

See figure 4

CONCLUSIONS

1) In relation to work, the group came to the conclusion that Operations

Management or production administration are those activities necessary to
manufacture products and provide services.
2) Operations Management seeks to ensure that the greatest possible benefit
is obtained from the resources used, and not only material resources, but
also the personnel who work, seeking from them the abilities of each one
to magnify their task.
3) Operations management focuses on applying production management
based on competitiveness and productivity to provide a quality good or
service to meet the standards demanded by customers.
4) The main goal of Operations Management is to help understand and/or use
operations as a competitive weapon in the global market. Through good
management of the design, direction and systematic control of the
processes that transform inputs into products and services to satisfy
customer needs and generate a competitive advantage over large
competitors in the national and international market.

23
5) For good management of operations management, it is important to plan,
organize and integrate it with the other areas, to unify the methodologies
and the way of working, having a goal of where the company's objectives
and operations are going.

RECOMMENDATIONS

1) Adequate training is recommended so that management personnel have

access to a better understanding of the determining elements of the demand
and supply of goods and services.
2) It is also recommended to achieve maximum effectiveness through
constant improvement of the production process. We are talking about the
implementation of quality systems. Some practices that companies must
introduce gradually to be more competitive.
3) It is recommended to establish increasingly frequent contacts with your clients
to achieve a better operational understanding.
4) Furthermore, it is recommended that the improvements developed be
disseminated and put into practice, since they will result in the safety of the
personnel and benefits for the company. It must then be provided with
procedures and operations manuals, which will include all the activities of
each system based on the corresponding standard.

24
 BIBLIOGRAPHIC REVIEW

https://es.scribd.com/doc/25323139/Operations-Management

www.gestiopolis.com/administracion.../ administracion-de-operaciones.ht ...

www.activitieseconomicas.org/2012/06/goods-and-services.html

qualitysolutionsyourservice.blogspot.com/.../differences-between-goods- ...

prezi.com/.../ fundamental- differences -between- goods-and-services

www.eoi.es/.../ conceptos-de-gestion-de-operaciones -aplicado-al-empresa ...

25
 BIBLIOGRAPHIC REFERENCES

https://es.scribd.com/doc/25323139/ Gestion-de-Operaciones retrieved January

17, 2010

www.gestiopolis.com/administracion.../ administracion-de-operaciones.ht ...

Retrieved November 9, 2011

www.activityeseconomicas.org/2012/06/bienes-y-servicios.html retrieved June 8,

2012

solucionesdecalidadayourservice .blogspot.com/.../ differences-between-

goods -... retrieved February 6, 2012

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December 30, 2013
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1, 2012

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www.eoi.es/.../ conceptos-de-gestion-de-operaciones -aplicado-al-empresa ...
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KRAJEWSKI, L.J., RITZMAN, LP. Operations management: strategy and analysis.

Pearson Education. Mexico, 2000.

HEIZER, J., RENDER, B. Principles of operations management. Pearson

Education. Mexico, 2005.

27
28
 EXHIBIT

Year Concept Tool Originator

1910s Admon. Scientific Time and motion studies Frederick W. Taylor

Industrial psychology Gantt, CEP or EOQ Frank and Lillian Gilbreth

Assembly line - 1913 Henry Ford (Mod. T)

Economic amount to F.W. Harris

request

1930s QA CEP, sampling methods for Walter Shewhart

receipt inspection
H.F. Dodge, H.G. Romig

29
 Worker motivation at Activity sampling Elton Mayo
Hawthorne

1940s Multidisciplinary teams for Linear programming Operations research

complex problems groups and George B.
Dantzig

1950-1060 Development of operations Simulation, waiting lines, Many researchers in the

decade research decision theory, United States and Western
mathematical Europe
programming, PERT, CPM

1970s Using computers in Production and inventory Computer manufacturers,

business scheduling, forecasting, IBM Joseph Orlick and
MRP. Mass production in Oliver Wright (MRP II)
Service quality and
services.
productivity

1980s Manufacturing strategy, Lean manufacturing, Harvard Business School,

JIT, Kanban, TQM, robots Kanban, Poka yokes, CIM, Tai-Ichi Ohno at Toyota,
FMS, CAD/CAM, robots, WE Deming, J. Juran and
etc. engineering disciplines in
the West.
Bottleneck analysis, OPT.,
theory of constraints

Synchronized Eliyahu M. Goldratt

manufacturing

1990s Total Quality Management Malcolm Baldrige Award, NIST, ISO

ISO 9000, QFD, value
engineering, concurrent
engineering, continuous
improvement.

Radical change
Business process
reengineering

30
 Mikel Hammer and
consultants
Electronic company Internet, WWW

Netscape, Microsoft
Supply chain management SAP R/3 Software

SAP, Oracle

2000s e-commerce Internet, WWW Amazon, eBay, AOL,

Yahoo, Google

FIG. 1

31
 FIG. 2

Structure for operations strategy in manufacturing

32
FIG. 3

33
QUALITY PRODUCTION

FIG. 4

34