Chapter 1 - The Operations Function

Contemporary Operations Challenges

Services and Manufacturing [differences and implications] Customer-Directed Operations ["voice of the customer"] Integration of Decisions Internally and Externally Environmental Sustainability Globalization of Operations and the Supply Chain

Three Aspects of Operations Management

Decisions - The operations manager must decide: Process, quality, capacity, inventory, and supply chain Function - Major functional areas in organizations: Operations, marketing, finance Process - Planning and controlling the transformation process and its interfaces [internal and external]

Contingency

Decisions related to process, quality, capacity, inventory, and suppy chain "There is no single set of [best] practices. The best decision-making will depend on the situation"

Operations Management

Operations management focuses on decisions for the production and delivery of the firm's products and services

Supply Chain

Network of manufacturing and service operations that supply one another From raw materials through production to the end consumer Flows of materials, money, and information Links operations across organizations

Cross-Functional Decision Making

Operations as the primary production function Other primary functions: Marketing Finance Supporting functions: All