Chapter 19 Operations and Value Chain Management

Chapter 19 Operations and Value Chain Management - Chapter...

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Chapter 19 Operations and Value Chain  Management ANNOTATED OUTLINE 1. INTRODUCTION Studying the operating system of an organization is essential to an understanding of how a company’s efficiency, productivity, value chain management, e-manufacturing, and controls contribute to its success in producing goods and delivering services. 2. WHAT IS OPERATIONS MANAGEMENT AND WHY IS IT IMPORTANT? A. Operations management is the design, operation, and control of the transformation process that converts resources into finished goods or services. Exhibit 19-1 and PowerPoint slide 19-5 illustrate a simplified operations system. B. Operations management is important for three key reasons: 1. Operations management encompasses both manufacturing and services. a. Manufacturing organizations are organizations that produce physical goods. b. Service organizations are organizations that produce nonphysical outputs in the form of services. 2. Operations management is important in managing productivity. a. Productivity is the overall output of goods or services produced divided by the inputs needed to generate that output. b. W. Edwards Deming believed that managers, rather than workers, were the primary source of increased productivity. Deming presented 14 points for improving management’s productivity. (See Exhibit 19-2 and PowerPoint slide 19-8 .) 3. VALUE CHAIN MANAGEMENT This section of Chapter Nineteen examines several aspects of value chain management, including its definition, goals, benefits, and potential obstacles to successful implementation. A.What is value chain management? In order to understand the term
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This note was uploaded on 03/03/2010 for the course MGT 7625 taught by Professor Trappey during the Spring '10 term at National Taiwan University.

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Chapter 19 Operations and Value Chain Management - Chapter...

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