Business Behavior
Chapter 2 Effective Operations Management

* Read IKEA Case (page 13 – 14): The key point of this case is why IKEA is able to survive and succeed? - It certainly keeps a very tight control of its costs. - It understands its market and how it can serve the needs of its customers. - The products it designs and sells must be regarded by its customers as representing outstanding value for money. - The way it organizes the delivery of its services within its stores. All are engaged in operations management.

* Important Definitions:

- The Operations Function, it is the arrangement of resources which is devoted to the production of its goods and services, and could be called in other organizations as operation system.

- Operations Managers, are the staff who are responsible for managing some or all the resources which compromise the operation function and they are given different titles according to the function of the organization such as 'fleet manager' for distribution company or 'administrative manager' in hospitals an so on.

- Operation management, it is used for the activities, decisions and responsibilities of operation manager.

OPERATIONS IN THE ORGANIZATION

* Operation function is an important function but it is not the only one in any organization. Organizations are divided into three major functions beside operation: - The marketing function. - The accounting and finance function. - The product/service development function.

* Support functions: - The human resources function. - The production function. - The engineering / technical function.

See table 2.1 page 16 ---- The activities of functions in some