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Operations

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

The Operations Function consists of all activities directly related to producing goods or providing services. * System Design
Capacity. Facility location. Facility layout. Product and service planning. Acquisition and placement of equipment * These are typically strategic decisions that * usually require long-term commitment of resources. Determine parameters of system operation * System Operation * These are generally tactical and operational decisions
Management of personnel. Inventory management and control. Scheduling
Project management * Quality assurance * Operations managers spend more time on system operation decision than any other decision area * They still have a vital stake in system design * The systems approach * Emphasizes interrelationships among subsystems * Main theme is that the whole is greater than the sum of its parts * The output and objectives of the organization take precedence over those of any one subsystem
Supply chain issues * The need to improve operations * Increasing levels of outsourcing * Increasing transportation costs * Competitive pressures * Increasing globalization * Increasing importance of e-business * The complexity of supply chains * The need to manage inventories

CHAPTER 2 * Mission * The reason for an organization’s existence * Mission statement * States the purpose of the organization * The mission

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