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Mangment

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Submitted By Ramzi617
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Introduction to Operations Management

McGraw-Hill/Irwin

Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

 What is operations?
 The part of a business organization that is responsible

for producing goods or services

 How can we define operations management?
 The management of systems or processes that create

goods and/or provide services

Instructor Slides

1-2

Goods are physical items that include raw materials, parts, subassemblies, and final products. •Automobile •Computer •Oven •Shampoo Services are activities that provide some combination of time, location, form or psychological value. •Air travel •Education •Haircut •Legal counsel

Instructor Slides

1-3

Supply Chain – a sequence of activities and organizations involved in producing and delivering a good or service

Suppliers’ suppliers

Direct suppliers

Producer

Distributor

Final Customers

Instructor Slides

1-4

Instructor Slides

1-5

Organization Marketing Operations Finance

Instructor Slides

1-6

Value-Added

Inputs
•Land •Labor •Capital •Information

Transformation/ Conversion Process

Outputs
•Goods •Services

Measurement and Feedback Measurement and Feedback

Control

Measurement and Feedback

Feedback = measurements taken at various points in the transformation process Control = The comparison of feedback against previously established standards to determine if corrective action is needed.
Instructor Slides

1-7

Products are typically neither purely service- or purely goodsbased.
Goods Services
Surgery, Teaching Songwriting, Software Development Computer Repair, Restaurant Meal Home Remodeling, Retail Sales Automobile Assembly, Steelmaking

Instructor Slides

1-8

Manufacturing and Service Organizations differ chiefly because manufacturing is goods-oriented and service is

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