Chap001st - Chapter 01 - Introduction to Operations...

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Chapter 01 - Introduction to Operations Management CHAPTER 1 INTRODUCTION TO OPERATIONS MANAGEMENT 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 organization’s 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. 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. b. Frederick W. Taylor, who is often referred to as the father of scientific management, spearheaded the scientific management movement. The science of management was based on observation, measurement, analysis, improvement of work methods, and economic incentives. Management should be responsible for planning, carefully selecting and training workers, finding the best way to perform each job, achieving cooperation between management and workers, and separating management activities from work activities. c. Parts of a product made to such precision that each part would fit any of the identical items bring produced. It meant that individual parts would not have to be custom made because they were standardized. d.
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This note was uploaded on 02/29/2012 for the course BUSINESS 100 taught by Professor Allprofessor during the Spring '12 term at Virginia College.

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Chap001st - Chapter 01 - Introduction to Operations...

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