OMGT.docx - Week 1 and 2 Introduction to Operations...

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Week 1 and 2 - Introduction to Operations Management Introduction to Operations Management (OM) Introduction to Operations Management This introductory lesson focuses on activating your prior knowledge on Management. It may sound repetitive on your part as you might have studied this already in Senor High School, however, we would like you to have a smooth transition from high school lesson to college lessons. Afterall, it is just practical to start our discussion with something you are familiar with, so that you may not find it difficult to adjust to the more complicated topics. So, when you hear the word Management, what comes into our mind? Perhaps you think of – a business, people, managers, and the like. Several ideas might be running in your head now, and slowly you are able to recall what you have learned in high school. Management, as a distinct field of study, encompasses what we call “The Managerial Functions” of Planning, Organizing, Staffing/Directing, Actuating, and Controlling . Now, our course, Operations Management or Production and Operations Management (as previously known), is just one of the areas of concern in management. However, we will still be talking about the Managerial Functions here as we study this course. NOTE: In the past, the term Production was considered to connote only the manufacture of tangible items . Later, the term Operations was added to include references to non-manufacturing operations. That’s why Production and Operations Management and Operations Management are just the same. But we stick with our course description that is, Operations Management (OM). Lesson Proper: Basic Concepts on Operations Management (OM) Operations as a competitive weapon is important to Accounting , which prepares financial and cost accounting information that aids operations managers in designing and operating production systems . The production system consists of inputs, processes, outputs, and information flows that connect with customers and the external environment. It uses operation resources to transform inputs into desired outputs. It is considered as the heart of Operations Management. Inputs – includes human resources (workers, managers), capital (equipment, facilities), purchased materials and services, land, and energy It may also be raw materials, a customer, or a finished product from another system Process – any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides output for a customer Finance , which manages the cash flows and capital investment requirements that are created by the operations function. Human Resources , which hires and trains employees to match process needs, location decisions, and planned production levels. Management Information Systems , which develops information systems and decision support systems for operations managers.

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