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Operations Management

Operations Management. Organization Three Legged Stool. Finance Operations Marketing. Operations Management. Management of systems Management of processes For the creation of goods and/or services. Function of Operations. Transform or convert inputs to outputs Inputs People Materials

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Operations Management

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  1. Operations Management

  2. Organization Three Legged Stool • Finance • Operations • Marketing

  3. Operations Management • Management of systems • Management of processes For the creation of goods and/or services

  4. Function of Operations • Transform or convert inputs to outputs • Inputs • People Materials • Tools & machines • Energy Information • Finances Time

  5. Transformation • Conversion of inputs to desired output • “Value added” process • Measurement is the dollar • Value added is greater than cost

  6. Goods vs. Services • Production of goods results in an object with mass • Service delivery implies an act

  7. Is it a Good or Service • Degree of customer contact • Uniformity of input • Uniformity of output • Labor Content of job • Measurement of productivity • Production and delivery • Quality assurance • Amount of inventory

  8. Scope of Operations Management • Forecasting • Capacity planning • Scheduling

  9. Scope of Operations Management • Managing inventories • Assuring quality • Motivating and training employees • Locating facilities

  10. Operation Function • All activities directly related to: • Producing Goods • Providing Services

  11. Decisions • Guidance by decision making • Design of system • Operation of system

  12. In addition • Purchasing • Industrial Engineering • Distribution • Maintenance

  13. At the Core • Operations is the reason for existence • Additional functions are supporting • Finance—Marketing • Half of all employees in Nation work in operations

  14. Why Study Operations Mgmt? • Organizations operate most efficiently when all functions work together • Requires an understanding of individual role and the role’s or functions of others

  15. Leads to: • Exchange of information • Cooperative decision making • Stronger Organization = Success

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