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
Planning, Organizing, Staffing/Directing, Actuating, and Controlling
. Now, our
Operations Management or Production and Operations Management (as
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
was considered to connote only the manufacture of
. Later, the term
was added to include references to non-manufacturing
Production and Operations Management
are just the same. But we stick with our course description that is,
Basic Concepts on Operations Management (OM)
Operations as a competitive weapon is important to
, which prepares financial and cost accounting information that aids operations managers
in designing and operating production systems
inputs, processes, outputs, and information flows
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
Process – any activity or group of activities that takes one or more inputs,
value to them, and provides output for a customer
, which manages the cash flows and capital investment requirements that are created by the
, 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.