STUDY OUTLINE FOR CHAPTER 1
INTRODUCTION TO Operations Management 1. Operations management is: The management of systems or processes that create goods and/or provide services
2. What are the three basic functions in business organizations?
1)Marketing
2)Operations
3) Finance

2. A supply chain consists of A sequence of activities and organizations involved in producing and delivering a good or service

4. What is meant by the term value-added? The amount by which the price or value of an output is increased due to the addition of material, labor, or other resource.
5. The operations function oversees a transformation or conversion process. Explain briefly.

Input, Output and Value-added. Any operation can be described as a set of inputs (i.e. labor and materials) that are transformed into a set of outputs (i.e. goods and/or services), as illustrated in Figure. The essence of operations management is value-added, or the degree to which the value of all outputs of an operation exceed the value of its inputs.
6. Explain the term goods-service continuum. Products are typically neither purely service- nor purely goods-based.
7. List some ways that manufacturing systems and service systems differ. * Jobs in services are often less structured than in manufacturing * Customer contact is generally much higher in services compared to manufacturing * In many services, worker skill levels are low compared to those of manufacturing employees * Services are adding many new workers in low-skill, entry-level positions * Employee turnover is high in services, especially in low-skill jobs * Input variability tends to be higher in many service environments than in manufacturing * Service performance can be adversely affected by many factors outside of the manager’s control (e.g., employee and customer attitudes

8. What is a process?