Chapter 1: Introduction to Operations Management Flashcards
What is Operations Management
OM is the management of actives and resources that create goods and/or provide services
Two types of organizations
- produce goods
- provide services
Organization use OM to improve:
- efficiency and operating at minimum cost and time
- effectiveness and achieving quality and timeliness and add value to the organization
What are operation management activities
- forecasting
- capacity planning
- scheduling
- managing inventories
- assuring quality
- motivating employees
- where to locate facilities
Why study OM?
- a large percentage of a company’s expenses occur in the OM area (improvements = more profits)
- a large number of all jobs are in OM area (purchasing, quality, planning, scheduling, inventory, etc..)
- Activities in all other areas (HR, MIS, Maintenance, finance, marketing) are interrelated with OM activities
Three basic functions of organizations
- operations
- finance/accounting
- marketing
Operations definitions
create goods and services
finance/accounting definition
provided funds and the economic analysis of investment proposals
marketing definition
assess customer wants and needs and communicate them to others
The operations manager’s job
planning
organizing
controlling
directing
planning responsibility
capacity, location, mix of products and services, make or buy, projects
organizing responsibility
degree of centralization, specialization, subcontracting, staffing, suppliers
controlling responsibility
inventory, quality, motivation, cost, productivity
directing responsibility
scheduling, incentive plans, work orders, job assignments
goods and services
most systems are a blend of both
-service sector accounts for >78% of jobs in Canada
