chapter 9 (NMM) - NMM AEM 1200 Intro to Bus Mgmt Chapter 9...

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NMM – AEM 1200 Intro to Bus Mgmt Chapter 9: Producing World – Class Goods and Services Operations Management  Specialized area of management that converts or transforms resources into goods and  services Firms in both manufacturing and service sectors use operations managers Functions Facility location o Process of selecting a geographic location for a company’s operations o Criteria for evaluating sites Labor costs Land costs Whether resources are plentiful and inexpensive Skilled workers are available or trainable Taxes are low and local gov’t offers support Energy and water are available Transportation costs are low Quality of life and education are high Facility layout o Physical arrangement of resources (including ppl) to produce goods and services o Types of layouts Assembly line – when workers do only few tasks at a time; used to  produce large quantities of a few types of products Process – when teams of workers produce more complex units of a final  products; frequently used in operations that serve different customers’  different needs Cellular or module – when similar equipment or functions are grouped 
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