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GSM5113notes - 1 GSM 5113 OPERATIONS MANAGEMENT Operations...

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GSM 5113 – OPERATIONS MANAGEMENT Operations Management deals with processes that produce goods and services that people use everyday Processes are the fundamental activities that organizations use to do work and achieve their goals Examples o Application process at GSM to gather information and communicate to students o Order-fulfillment process at an importer and distributor of merchandise to retail stores o The patient care process used by hospitals’ cardiac unit Every organization, whether public or private, manufacturing or service, must manage processes and operations where these operations are performed A process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides one or more outputs for its customers Inputs Process Output 1 Processes and Operations Inputs Workers Managers Equipment Facilities Materials Services Land Energy Information Outputs Services Goods Information on performance Internal and External Customers
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Every process and every person in an organization has customers and suppliers Customers can be either internal or external. Processes must be managed with customers in mind. Suppliers can be either internal or external Fundamental role of inputs, processes, and customer outputs holds true for processes at all organizations Processes can be broken down into sub-processes, which can in turn be broken down into more sub-processes – nested process Value chain – an interrelated series of processes that produces a product or service Core process – a chain of activities that delivers value to external customers Support process – a process that provides vital resources and inputs to the core processes and therefore essential to the management of businesses Four core processes – customer relationship process—also referred to as customer relationship management, new service/product development process, order fulfillment process, supplier relationship process The term operations management refers to the systematic design, direction and control of the processes that transform inputs into product or services for internal as well as external customers 2
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Operations area manages the processes that produce the primary services or products for the external and internal customers but is closely involved with other areas of the firm Each part of an organization, not just the operations function, must design and operate processes that deal with quality, technology, and staffing issues Each part of an organization has its own identity and yet is connected with operations In managing operations both strategic and tactical decisions are involved o Strategic decisions – long term in nature, focuses on entire organization cutting across departments o Tactical decisions – short term in nature, focuses on departments, teams, and tasks Types of OM decisions o
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