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Unformatted text preview: CHAPTER 1 INTRODUCTION TO OPERATIONS MANAGEMENT Teaching Notes Many students come to this course with negative feelings, perhaps because they have heard that the course includes a certain amount of quantitative material (which many feel uncomfortable with), or perhaps because the course strikes them as how to run a factory. Others seem to have very little idea about what operations management is. I view the initial meeting with my classes, and this first chapter, as opportunities to dispel some of these notions, and to generate enthusiasm for the course. Highlights of the chapter include the following: 1. Operations as one of the three main functional concerns of most organizations. 2. The role and job of the operations manager as a planner and decision-maker. 3. Different ways of classifying (and understanding) production systems. 4. System design versus system operation. 5. Major characteristics of production systems. 6. Contemporary issues in operations management. 7. Operations as essentially managerial (planning, staffing, etc.) 8. The historical evolution of production/operations management. 9. Manufacturing operations versus service operations. Answers to Discussion and Review Questions 1. The term production/operations management relates to the management of systems or processes that create goods and/or provide services. These processes involve the planning, coordination, and execution of all activities that create goods and services. 2. The three primary functions are operations, finance, and marketing. Operations is concerned with the creation of goods and services, finance is concerned with provision of funds necessary for operation, and marketing is concerned with promoting and/or selling goods or services. 3. The operations function consists of all activities that are directly related to producing goods or providing services. It is the core of most business organizations because it is responsible for the creation of an organizations goods or services. Its essence is to add value during the transformation process (the difference between the cost of inputs and value and price of outputs). 4. Among the important differences between manufacturing and service operations are: a. The nature and consumption of output. b. Uniformity of input. c. Labor content of jobs. d. Uniformity of output. e. Measurement of productivity. Instructors Manual, Chapter 1 1 5. a. The Industrial Revolution began in the 1770s in England, and spread to the rest of Europe and to the U.S. in the late eighteenth century and the early nineteenth century. A number of inventions such as the steam engine, the spinning Jenny, and the power loom helped to bring about this change. There were also ample supplies of coal and iron ore to provide the necessary materials for generating the power to operate and build the machines that were much stronger and more durable than the simple wooden ones they replaced....
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