Chapter One Notes - Chapter One Operations and Productivity...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Chapter One – Operations and Productivity What is Operations Management – Production: the creation of goods and services. Operations Management (OM): activities that relate to the creation of goods and services through the transformation of inputs to outputs. Organizing to Produce Goods and Services – The three functions necessary for creating goods and services are: 1. Marketing: which generates demand, or at least takes the order for a product or service. 2. Production/Operations: which creates the product. 3. Finance/Accounting: which tracks how well the organization is doing, pays the bills, and collects the money. The Supply Chain – Supply Chain: a global network of organizations and activities that supplies a firm with goods and services. Increased specialization adds value to the supply chain at each step Why Study OM – 1. OM is one of the three major functions of any organization, and it is integrally related to all the other business functions. All organizations market (sell), finance (account), and produce (operate), and it is important to know how the OM activity functions. How people organize themselves for productive enterprise. 2. We want to know how goods and services are produced. 3. We want to understand what operations managers do. 4. OM is a costly part of an organization. OM provides a major opportunity for an organization to improve its profitability and enhance its service to society. What Operations Managers Do – 10 Strategic OM Decisions Design of goods and services Managing quality Process strategy Location strategies
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern