Module 1: Intro to OM Flashcards
is the creation of goods and services
Production
is the set of activities that create value in the form of goods and services by transforming inputs into outputs
Operations Management
generates demand
Marketing
creates the product
Production/operations
tracks how well the organization is doing, pays bills, collects the money
Finance/accounting
A global network of organizations and activities that supply a firm with goods and services
Supply Chain
3 major functions of an organization
OM
Marketing
Finance
What Operations Managers Do
Planning
Organizing
Staffing
Leading
Controlling
10 Strategic Decisions
- Design of goods and services
- Managing quality
- Process and capacity design
- Location strategy
- Layout strategy
- Human resources and job design
- Supply-chain management
- Inventory management
- Scheduling
- Maintenance
Defines what is required of operations
Product design determines quality, sustainability and human resources
Design of goods and services
Determine the customer’s quality expectations
Establish policies and procedures to identify and achieve that quality
Managing quality
How is a good or service produced?
Commits management to specific technology, quality, resources, and investment.
Process and capacity design
Nearness to customers, suppliers, and talent.
Considering costs, infrastructure, logistics, and government.
Location strategy
Integrate capacity needs, personnel levels, technology, and inventory
Determine the efficient flow of materials, people, and information.
Layout strategy
Recruit, motivate, and retain personnel with the required talent and skills.
Integral and expensive part of the total system design.
Human resources and job design
Integrate supply chain into the firm’s strategy.
Determine what is to be purchased, from whom, and under what conditions.
Supply-chain management
Inventory ordering and holding decisions.
Optimize considering customer satisfaction, supplier capability, and production schedules
Inventory management
