OPERATIONS MAN MOD1&2.pdf - 1.1 Nature of Operations...

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1.1 Nature of Operations Management Good day dear students! Operations activity is the fundamental that all business organizations do. Business operations are processes that either provide services or create goods. Operations take place in businesses such as restaurants, gasoline stations, retail stores, supermarkets, factories, hospitals, and even in colleges and universities. In fact, they take place in every business organization. Moreover, operations are the core of what a business organization does. Technically we can define operations as the part of a business organization that is responsible for producing goods or services. Operation is literally a managing activity. In other words it is an Operations Management(OM). So how do we define Operations Management? Operations Management is defined as the management of systems or processes that create goods and/or provide services To understand more on what is Operations Management kindly watch the attached video link: What is Operations Management? (Links to an external site.) Why Study Operations Management?
Every aspect of business affects or is affected by operations Many service jobs are closely related to operations such as financial services, marketing services, accounting services and Information services Through learning about operations and supply chains you will have a better understanding of: The world you live in The global dependencies of companies and nations Reasons that companies succeed or fail The importance of working with others In managing the business organization there are three basic functions that should be present to be functional these are the finance, operations and marketing. Operations cannot stand on its own, it requires other external organizations before reaching the customers..Operations and supply chains are intrinsically linked, and no business organization could exist without both. A supply chain is the sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service. The sequence begins with basic suppliers of raw materials and extends all the way to the final customer. Below is the examples of a simple product supply chain: Below is another example of supply chain for a bread manufacturer::
Business provides goods and services to the customers. The creation of goods or services involves transforming or converting inputs into outputs. Various inputs such as capital, labor, and information are used to create goods or services using one or more transformation processes (e.g., storing, transporting, repairing). To ensure that the desired outputs are obtained, an organization takes measurements at various points in the transformation process ( feedback ) and then compares them with previously established standards to determine whether corrective action is needed ( control ). The figure below depicts the conversion system: The essence of the operations function is to add value during the transformation process: Value-added

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