Ch16_IM_Daft AISE - Chapter 16 Operations and Service...

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This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 16 Operations and Service Management Chapter Outline I. Organizations as Production Systems A. Manufacturing and Service Operations B. Operations Strategy C. The Integrated Enterprise II. Designing Operations Management Systems A. Product and Service Design B. Procurement C. Facilities Layout D. Technology Automation E. Facility Location F. Capacity Planning III. Inventory Management A. The Importance of Inventory B. Economic Order Quantity C. Materials Requirement Planning D. Just-in-Time Inventory E. Logistics and Distribution Management IV. Logistics and Distribution Management A. Lean Manufacturing B. Measuring Productivity C. Improving Productivity Annotated Learning Objectives After studying this chapter, students should be able to: 1. Define operations management and describe its application within manufacturing and service organizations.
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This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 426 PART 5 Controlling Operations management is defined as the field of management that specializes in the application of special tools and techniques to the physical production of goods and services. Operating managers are concerned with all production activities within the organization. An organization can be described as a system used for transforming inputs into outputs. At the center of this transformation process is the technical core, which is the heart of the organization’s production of its product or service. Inputs into the technical core include human resources, land, equipment, buildings, and technology. Outputs from the technical core include the goods and services that are provided for customers and clients. Operations management pertains to the day-to-day management of the technical core of the transformation process. Manufacturing organizations produce physical goods, and service organizations produce nonphysical outputs such as medical, educational, or transportation services provided for customers. 2. Discuss the role of operations management strategy in the company’s overall competitive strategy. Operations strategy is the recognition of the important role of operations in organizational success and the involvement of operations managers in the organization’s strategic planning. The stages in the evolution of operations strategy are: Stage 1, business strategy is set without considering the capability of operations; Stage 2, the operations department sets objectives according to industry practice; Stage 3, operations strategy is in concert with company strategy; and Stage 4, operations managers may pursue new technologies to do the best possible job of delivering the product or service. In the last stage customer orders are won through
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Ch16_IM_Daft AISE - Chapter 16 Operations and Service...

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