ch 20 MGT

operations management

the performance of managerial activities that involve selecting, designing, operating, controlling, and updating production systems

productivity

relationship between the total amount of goods or services being produced (output) and the organizational resources needed to produce them (input). This relationship is usually expressed by the following equation outputs/inputs

operations management is the systematic direction and control of the operations processes that transform resources into finished goods and services. This concept conveys three key notions:

1. Operations management involves managers—people who get things done by working with or through other people. 2. Operations management takes place within the context of the objectives and policies that drive the organization's strategic plans. 3. The criteria for judging the actions taken as a result of operations management are standards for effectiveness and efficiency.

Efficiency

degree to which organizational resources contribute to productivity: "doing things right.

quality

how well a product does what it is intended to do—how closely it satisfies the specifications to which it was built.

production

transformation of organizational resources into products. organizational resources are all the assets available to a manager to generate products, transformation is the set of steps necessary to change these resources into products, and products are various goods or services aimed at meeting human needs

The distinction between periodic activities and continual activities involves the relative frequency of their performance:

Periodic activities are performed from time to time, whereas continual activities are performed essentially without interruption.

effectiveness

degree to which managers attain organizational objectives: "doing the right things