OM 300 Module 1:What is Operations Management?
The Supply Chain
A ___global_____ ____network_______of organizations and activities that supplies a firm with goods and services
Essential functions:
Marketing,finance/accounting, and production/operations
Why Study OM?
OM is one of three major functions of any organization; we want to study how people organize themselves for productive enterprise We want (and need) to know how goods and services are produced We want to understand what operations managers do OM is such a costly part of an organization
The Base
People Product Process
Important note about productivity
Production is a measure of output only and not a measure of efficiency
The Stuff
Quality Management Inventory Management Supply Chain Management
The Face
Scheduling Maintenance
4 groups of strategic OM decisions
The base, the stuff, the place, and the face
Operations activities are performed in
both manufacturing and services Distinction not always clear Few pure services
What do members of the supply chain do?
collaborate to achieve high levels of customer satisfaction, efficiency and competitive advantage
Production/Operations
creates the product
Marketing
generates demand
Production
is the creation of goods and services
Productivity
is the ratio of outputs (goods and services) divided by the inputs (resources such as labor and capital)
Manufacturers produce
tangible___________ product, services often ___intangible_________.
Operations management (OM)
the set of activities that ___creates___ __value_____in the form of goods and services by ____transforming________ inputs into outputs
Finance/Accounting
tracks how well the organization is doing, pays bills, collects the money
What Operations Managers Do
▶Planning ▶Organizing ▶Staffing ▶Leading ▶Controlling
The Place
Location Layout