Chapter 1 - Chapter 1 The Ideal situation for a business...

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Unformatted text preview: Chapter 1 The Ideal situation for a business organization is to achieve a match of supply and demand. The key functions on the supply side are operations and supply chains, and sales and marketing on the demand side. Operations function is responsible for producing products and delivering services. Business Organizations three basic functional areas o Finance o Marketing o Operations Finance is responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations. Marketing and operations are the primary Functions Marketing is responsible for accessing consumer wants and needs, and selling and promoting the organizations goods or services. Operations is responsible for producing the goods or providing the services offered by the organization. Operations is the core of an organization. A supply chain is the sequence of organizations; their facilities, functions, and activities; that are involved in producing and delivering a product or service. Supply chains are both external and internal to the organization. External provide raw material, parts, equipment, supplies, and other inputs to the organization, and they deliver outputs that are goods to the organizations customers. Internal parts are the parts of the operations function itself, supplying operations with parts and material, performing work on products and services, and passing the work on to the next step in the process. Inputs include capital, labor, and information. The goods-service combination is a continuum. Value-added is the difference between the cost of inputs and the value or price of outputs. Tangible output is anything that we can see or touch. The difference in goods and services o Degree of customer contact o Uniformity of input o Labor content of jobs o Uniformity of outputs o Measurement of productivity o Production and delivery o Quality assurance o Amount of inventory o Evaluation of work o Ability to patent design A key aspect of operations management is process management A process is one or more actions that transform inputs into outputs Three categories of business processes o Upper-management process-these govern the operation of the entire organization. o Operational processes- these are the core processes that make up the value stream. o Supporting processes- these support he core processes Business process management (bmp) activities include process design, process execution, and process monitoring. The two basic aspects of this for operations and supply chain management are managing processes to meet demand and dealing with process variability....
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This note was uploaded on 03/27/2011 for the course FIN 3410 taught by Professor Jones during the Spring '09 term at U. Memphis.

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Chapter 1 - Chapter 1 The Ideal situation for a business...

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