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The fresh start of the semester five. During the first week of semester, there's no UJMP class. So Dr Siti Zakiah asked us to make a video about ourself to get to know each one of us and what do we expect from this subject thoughout this semester.

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According to the provided slide in the class, the summary of the topic can be jot down as below;

1. Planning, Organizing, and Supervising:

- Operations management involves strategic planning to outline goals and objectives, organizing resources effectively, and supervising the execution of processes. This ensures that activities align with the overall organizational strategy.

2. System Approach (I-TP-O):

- Adopting a system approach (Input-Transformation-Output) in operations management means viewing the entire process as a holistic system. Inputs are transformed into outputs through various processes, and understanding this system helps identify areas for improvement and optimization.

3. Value Addition through Processes:

- Operations aim to add value to products or services at each stage of the process. This value addition is crucial for meeting customer expectations and maintaining a competitive edge. For example, a manufacturing process might involve quality control measures to enhance the final product.

4. Knowledge and Information:

- Knowledge, derived from education and experience, plays a vital role in decision-making within operations management. It aids in problem-solving, innovation, and continuous improvement. Information, as a refined form of data, contributes to informed decision-making by providing actionable insights.

5. Intersection of OM and KM:

- The intersection of operations Management (OM) and Knowledge Management (KM) explores how organizations can leverage knowledge for operational excellence. This includes identifying and managing different types of knowledge within the organization, such as explicit and tacit knowledge.

6. Technology in the Value Chain:

- Technology plays a crucial role in optimizing the value chain. For example, implementing advanced manufacturing technologies or using information systems for real-time monitoring can enhance efficiency and reduce costs across the entire value chain.

7. Integration of Operating Systems through IS:

- Information Systems (IS) facilitate the integration of operating systems, allowing for seamless communication and coordination between different stages of the value chain. This integration enhances overall efficiency and responsiveness to changes in the business environment.

8. Benefits and Challenges:

- Integrating technology and knowledge into operations management brings several benefits, such as increased efficiency, better decision-making, and improved customer satisfaction. However, challenges may include the need for continuous updates, potential resistance to change, and data security concerns.

Hence, operations management is a multifaceted discipline that involves careful planning, efficient organization, and continuous supervision to transform inputs into valuable outputs. The integration of knowledge management and technology further enhances operational effectiveness, presenting both opportunities and challenges for organizations seeking to excel in today's dynamic business landscape.

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In Production/Operations and Knowledge Management, understanding customer wants and needs is paramount. For instance, a company like Apple excels by anticipating and fulfilling customer desires for sleek design, cutting-edge technology, and user-friendly interfaces.

Competitive priorities involve determining what sets a company apart. Toyota, for example, has long prioritized operational efficiency, allowing them to produce high-quality vehicles at a competitive cost, thus gaining an edge in the automotive market.

Strategic planning and formulation entail aligning operational decisions with long-term objectives. Amazon strategically invested in technology and logistics, enabling them to dominate e-commerce globally.

Utilizing Information Systems (IS) for a competitive advantage is exemplified by companies like Google, which leverages data analytics to enhance its search algorithms and advertising platforms.

Competing on a global scale requires adaptability. Nike's global supply chain management allows them to meet diverse market demands efficiently, maintaining a competitive position.

Competing on quality and design is illustrated by luxury brands like Rolex, emphasizing precision and craftsmanship to differentiate themselves in the market.

Competing on business processes involves efficiency and innovation. FedEx, for instance, revolutionized the logistics industry by introducing real-time package tracking, enhancing their overall business process.

In summary, strategic issues in Production/Operations and Knowledge management demand a holistic approach. Companies must align with customer expectations, define competitive priorities, engage in effective strategic planning, leverage IS, adapt to global markets, prioritize quality and design, and continually optimize business processes to stay ahead in today's dynamic business environment.

I also referred to this YouTube channel for more understanding regarding this topic. It was beneficial to link the examples explained by Dr Zakiah during the class with the video on Operations strategy.

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Internet of Things (IoT) and Business Networking

The Internet of Things (IoT) is characterized by the connection of everyday devices to the internet, enabling them to send and receive data. This connectivity enhances operational efficiency and automation, allowing for real-time monitoring and control. For instance, smart thermostats like Nest and wearable fitness trackers exemplify how IoT transforms ordinary objects into intelligent, data-generating devices.

The importance of IoT lies in its ability to enable data-driven decision-making and innovative business models. Through IoT, businesses can optimize processes, implement predictive maintenance, and enhance overall productivity. The continuous growth and integration of IoT technologies are reshaping the way organizations operate and make strategic decisions.

In parallel, trends in telecommunication play a pivotal role in shaping IoT. The evolution of 5G technology ensures faster and more reliable connectivity, crucial for handling the vast amounts of data generated by IoT devices. Additionally, the adoption of edge computing, where data is processed closer to the source, reduces latency and enhances overall system efficiency.

Communication networks, such as the Internet, intranets, and extranets, form the backbone of IoT and business networking. These interconnected systems facilitate seamless data exchange and collaboration on a global scale. Cloud computing services, exemplified by platforms like AWS and Azure, contribute to the global internet, providing accessibility and scalability for businesses worldwide.

Business networking, involving the establishment and nurturing of relationships for mutual benefit, plays a critical role in the interconnected business landscape. Platforms like LinkedIn exemplify how professionals connect globally, fostering knowledge sharing, partnerships, and business growth.

Therefore, IoT and business networking are integral components of the modern digital landscape. As IoT continues to evolve, supported by advancements in telecommunication and communication networks, businesses are empowered to harness data for strategic decision-making and innovative practices. Concurrently, effective business networking amplifies collaboration and growth opportunities in the interconnected global business environment.

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Managing Production Processes

- Process Planning:

- Projects: Unique, non-repetitive tasks; require specialized planning tailored to project specifications (e.g., constructing a bridge).

- Job Shop: Customized production; each item may undergo a different set of processes, demanding flexibility and adaptability (e.g., custom furniture manufacturing).

- Flow Shop: Assembly line production; follows a predetermined sequence of steps, enhancing efficiency (e.g., automobile manufacturing).

- Continuous Flow: Mass production; items move through the process without interruption, ensuring a steady output (e.g., bottling plants).

- Process Analysis:

- Thorough evaluation of production processes to identify inefficiencies and areas for improvement.

- Example: Conducting time and motion studies to pinpoint bottlenecks in an assembly line, leading to optimized workflows and increased productivity.

- Process Innovation:

- Introducing novel methods, technologies, or approaches to enhance production efficiency and effectiveness.

- Example: Incorporating robotics in manufacturing to automate repetitive tasks, reducing labor costs, and increasing precision.

- Technology Decision:

- Selection and integration of technologies aligned with production goals, optimizing resource utilization.

- Example: Choosing advanced Computer Numerical Control (CNC) machines in job shop manufacturing for precision and flexibility in producing custom parts.

- Service Positioning Matrix:

- Aligning production processes with customer service strategies to meet market demands effectively.

- Example: Fast-food restaurants strategically position themselves on the matrix based on factors like speed of service and level of customization, tailoring their processes accordingly to gain a competitive edge.

- Process Flow Chart:

- Visual representation of production steps and their sequence, providing a structured overview.

- Example: In software development, a process flow chart could depict stages such as requirement gathering, coding, testing, and deployment, ensuring a systematic and efficient development process.

Effective management of production processes involves nuanced planning that aligns with the specific characteristics of the production environment. Rigorous analysis, continuous innovation, and strategic technology decisions contribute to operational optimization. Aligning production processes with customer service strategies ensures market relevance, while visual tools like process flow charts offer clarity for efficient execution, ultimately enhancing the overall efficacy of production management.

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Managing Services

- Service Economy:

- Significant Contribution to GDP: The service sector's substantial contribution to a country's GDP underscores the importance for businesses to focus on delivering services to customers.

- Goods vs. Services:

- Goods Definition: Tangible, physical products like oranges, televisions, and furniture.

- Durable Goods: Typically last over three years, e.g., vehicles and dishwashers.

- Non-durable Goods: Perishable, lasting less than three years, e.g., toothpaste and shoes.

- Service Definition: Non-physical, encompassing primary or complementary activities that do not directly produce a physical product.

- Similarities between Goods and Services:

1. Value and Satisfaction: Both provide value and satisfaction to customers.

2. Standardization or Customization: Can be standardized or customized to individual wants and needs.

3. Critical Role of Operations Management (OM): OM is critical in the creation and delivery process of both goods and services.

- Differences between Goods and Services:

- Tangibility: Goods are tangible, while services are intangible.

- Customer Participation: Customers actively participate in many service processes and transactions.

- Demand Prediction: Predicting demand for services is more challenging than for goods.

- Inventory Storage: Services cannot be stored as physical inventory.

- Service Management Skills: Paramount for successful service encounters.

- Proximity to Customer: Service facilities often need to be in close proximity to the customer.

- Intellectual Property Protection: Unlike goods, services cannot be protected by patents.

- Types of Services:

- Internal and External: Services can be either provided within the organization (internal) or to external customers.

- Voluntary and Involuntary: Some services are chosen voluntarily by customers, while others are involuntary, such as emergency services.

The chapter concludes by highlighting the importance of the service economy and the necessity for businesses to place a high priority on service delivery. It highlights the similarities and differences between products and services, emphasising the crucial role that operations management plays in both. Effective service management requires a thorough understanding of the particular difficulties and traits that come with providing services, such as intangibility and client participation. Furthermore, understanding the various kinds of services—internal or external, voluntary or involuntary—helps service-oriented businesses make more informed strategic decisions.

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The chapter on Managing Capacity and Inventory delves into crucial aspects of operations management, focusing on optimizing resources and ensuring efficient supply chain processes. The concept of capacity management serves as a foundational pillar, involving the strategic planning and allocation of resources to meet organizational demands. This involves a comprehensive understanding of forecasting, which entails predicting future demands and adopting suitable methods for accurate projections.

In the context of capacity, the chapter distinguishes between long-term and short-term capacity planning. Long-term capacity planning involves strategic decisions related to facility expansion or contraction, while short-term capacity planning focuses on day-to-day operational adjustments to meet current demands. Both aspects are essential for maintaining a balance between resource utilization and market responsiveness.

The discussion then shifts to the crucial realm of inventory management, emphasizing its significance in achieving operational efficiency. The chapter introduces the basic inventory management model and explores the Economic Order Quantity (EOQ) model as a quantitative approach to optimize order quantities and holding costs.

For products with dependent demand, the chapter introduces Material Requirements Planning (MRP) and its extension, MRP II, as powerful tools to manage inventory levels based on production schedules and customer demand. These systems facilitate a synchronized approach to production and inventory, minimizing stockouts and excess inventory.

A contemporary approach highlighted in the chapter is the lean inventory management model. This strategy focuses on minimizing waste, reducing lead times, and enhancing overall efficiency. The lean approach emphasizes continuous improvement, allowing organizations to streamline processes and respond swiftly to changing market dynamics.

The chapter underscores the critical role of capacity and inventory management in organizational success. Hence, by integrating forecasting, capacity planning, and inventory optimization models, businesses can enhance their operational resilience and competitiveness in the dynamic marketplace. The inclusion of contemporary approaches like lean inventory management further emphasizes the need for adaptive strategies to address evolving industry demands.

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The chapter focuses on achieving operational excellence and customer intimacy through effective supply chain and information system management. It explores the symbiotic relationship between information systems and supply chain management, emphasizing their pivotal role in enhancing efficiency. Additionally, the concept of Customer Relationship Management (CRM) is introduced, highlighting its business value in fostering stronger customer connections. The chapter also touches on project management, emphasizing its significance in orchestrating successful initiatives within the broader context of operational and customer-focused strategies.

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BUS-203 Module 9: Achieving Operational Excellence and Customer Intimacy

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The chapter on Digital Markets and Digital Goods provides insights into the transformative impact of technology on contemporary commerce. It explores digital markets, platforms, and the dynamics of buying and selling in the digital realm. The concept of digital goods, which include products like software, e-books, and online subscriptions, is examined in depth. The chapter delves into the unique characteristics and challenges associated with these digital transactions, offering a comprehensive understanding of the evolving landscape where technology and commerce intersect.

E-commerce and m-commerce are distinct forms of electronic commerce, each with its own characteristics and applications.

E-commerce (Electronic Commerce):

E-commerce refers to the buying and selling of goods and services over the internet. It involves online transactions between businesses, consumers, or a combination of both.

1. Online Retail (B2C): Websites like Amazon, eBay, and Walmart allow consumers to purchase a wide range of products online.

2. Online Services (B2B): Platforms like Alibaba connect businesses globally for wholesale trade, creating an online marketplace for various industries.

M-commerce (Mobile Commerce):

M-commerce is a subset of e-commerce that specifically focuses on transactions conducted through mobile devices, such as smartphones and tablets.

1. Mobile Banking: Services like mobile banking apps allow users to check account balances, transfer funds, and pay bills directly from their mobile devices.

2. Mobile Shopping Apps: Retailers with dedicated mobile apps, such as the Amazon mobile app, enable users to browse, shop, and make purchases directly from their smartphones.

3. Mobile Wallets: Applications like Apple Pay, Google Pay, and Samsung Pay facilitate mobile payments, allowing users to make transactions using their smartphones.

Thus, we can see that while e-commerce encompasses a broad spectrum of online transactions conducted over the internet, m-commerce specifically focuses on transactions carried out through mobile devices, leveraging the unique capabilities and convenience offered by smartphones and tablets.

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Dear Dr. Siti Zakiah and Wonderful Classmates,

I wanted to express my sincere gratitude for the incredible journey we've had together in the Operations and Knowledge Management class. Dr. Siti Zakiah, your guidance and expertise have been invaluable in helping me grasp the complexities of the subject.

To my amazing classmates, thank you for the insightful discussions and sharing moments that made the learning experience truly enriching. Your perspectives have broadened my understanding and enhanced my overall comprehension of the subject.

I feel fortunate to have had such a supportive lecturer and a group of classmates who made the learning process enjoyable. Here's to the collaborative spirit that defined our class and the knowledge we gained together.

With heartfelt appreciation,

Nuryn.