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1. Why study operations management?

The study of operations management allows management to understand the design, managing, controlling, and improvement of business activities that provide details to the overall performance of products and services that are produced. Operations management is one of the three primary functions of a business. The other primary functions, noted by the text, are marketing and finance.

2. What is the difference between the terms “production management” and “operations management”?

The production management has a focus on the physical goods produced. For example, a manager over production would be concerned if orders were not meeting customer’s quotas. Operations management has a focus on how goods and services are produced and delivered to customers. Operation managers will be concerned of adding customer value while decreasing waste or increasing costs.

3. What is the difference between operations management and supply chain management?

Operations management is primary focused on the inputs and processes required to produce a service or product for a customer. On the other hand, managers over supply chains are tasked with the responsibility of getting the goods or materials to the place of production. A high emphasis on the supply chain managers is getting those raw materials to the operation at the precise time that the materials will be converted by the operation. If the delivery timing is off, an operation will face either shortages or increased inventories.

4. What are the key decisions made by purchasing and logistics managers?

The purchasing and logistics managers are keenly focused on decisions regarding the sourcing of inputs or supply materials needed by an organization. Both are concerned with the flow of materials, however purchasing managers are generally responsible for the