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    Mohammad Abid Miah
    This document provides an introduction to operations management. It defines key terms like operations, goods and services. It describes the transformation process and scope of operations management. It discusses the role of operations managers and why studying operations management is important. It also outlines some key issues and career opportunities in the field.

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    CH 1

    Uploaded by

    Mohammad Abid Miah
    17 views11 pages
    This document provides an introduction to operations management. It defines key terms like operations, goods and services. It describes the transformation process and scope of operations management. It discusses the role of operations managers and why studying operations management is important. It also outlines some key issues and career opportunities in the field.

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    This document provides an introduction to operations management. It defines key terms like operations, goods and services. It describes the transformation process and scope of operations management. It discusses the role of operations managers and why studying operations management is important. It also outlines some key issues and career opportunities in the field.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views11 pages

    CH 1

    Uploaded by

    Mohammad Abid Miah
    This document provides an introduction to operations management. It defines key terms like operations, goods and services. It describes the transformation process and scope of operations management. It discusses the role of operations managers and why studying operations management is important. It also outlines some key issues and career opportunities in the field.

    Copyright:

    © All Rights Reserved
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    You are on page 1of 11

    Chapter 1

    Introduction to Operations
    Management
    Operations Management
    • What is operations?
    – The part of a business organization that is
    responsible for producing goods or services
    • How can we define operations management?
    – The management of systems or processes that
    create goods and/or provide services

    1-2
    Good or Service?
    Goods are physical items that include raw materials, parts,
    subassemblies, and final products.
    •Automobile
    •Computer
    •Oven
    •Shampoo

    Services are activities that provide some combination of time, location,


    form or psychological value.
    •Air travel
    •Education
    •Haircut
    •Legal counsel

    1-3
    Supply Chain
    Supply Chain – a sequence of activities and
    organizations involved in producing and delivering
    a good or service

    Suppliers’ Direct Final


    Producer Distributor
    suppliers suppliers Customers

    1-4
    The Transformation Process
    Value-Added

    Inputs Transformation/ Outputs


    •Land Conversion •Goods
    •Labor •Services
    •Capital
    Process
    •Information

    Measurement
    and Feedback
    Measurement Measurement
    and Feedback and Feedback
    Control

    Feedback = measurements taken at various points in the transformation process

    Control = The comparison of feedback against previously established


    standards to determine if corrective action is needed.
    1-5
    Scope of Operations Management
    The scope of operations management ranges across
    the organization.
    The operations function includes many interrelated
    activities such as:
    ⚫ Forecasting
    ⚫ Capacity planning
    ⚫ Facilities and layout
    ⚫ Scheduling
    ⚫ Managing inventories
    ⚫ Assuring quality
    ⚫ Motivating employees
    ⚫ Deciding where to locate facilities
    ⚫ And more . . .
    1-6
    Role of the Operations Manager
    The Operations Function consists of all activities directly related
    to producing goods or providing services.

    A primary function of the operations manager is to guide the


    system by decision making.
    – System Design Decisions
    – System Operation Decisions

    1-7
    Why Study OM?
    • Every aspect of business affects or is affected by operations
    • Many service jobs are closely related to operations
    – Financial services
    – Marketing services
    – Accounting services
    – Information services
    • There is a significant amount of interaction and collaboration
    amongst the functional areas
    • It provides an excellent vehicle for understanding the world in
    which we live

    1-8
    OM and Supply Chain
    Career Opportunities
    • Operations manager
    • Supply chain manager
    • Production analyst
    • Schedule coordinator
    • Production manager
    • Industrial engineer
    • Purchasing manager
    • Inventory manager
    • Quality manager

    1-9
    Student Slides
    Decision Making
    ⚫ Most operations decisions involve many alternatives that can have quite
    different impacts on costs or profits
    ⚫ Typical operations decisions include:
    ⚫ What: What resources are needed, and in what amounts?
    ⚫ When: When will each resource be needed? When should the work be
    scheduled? When should materials and other supplies be ordered?
    ⚫ Where: Where will the work be done?
    ⚫ How: How will the product or service be designed? How will the work be
    done? How will resources be allocated?
    ⚫ Who: Who will do the work?

    1-10
    Key Issues for Operations
    Managers Today
    • Economic conditions
    • Innovating
    • Quality problems
    • Risk management
    • Competing in a global economy

    1-11

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