1 9 Why Study Operations Management Every aspect of business affects or is

1 9 why study operations management every aspect of

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1-9 Why Study Operations Management? Every aspect of business affects or is affected by operations Many service jobs are closely related to operations Financial services Marketing services Accounting services 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 LO 1.3 LO 1.3
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1-10 Operations Operations Finance Finance Marketing Marketing Organization Organization Basic Functions of the Business Organization LO 1.4 LO 1.4
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1-11 Function Overlap Finance & Operations Budgeting Economic analysis of investment proposals Provision of funds Marketing & Operations Demand data Product and service design Competitor analysis Lead time data LO 1.4 LO 1.4
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1-12 OM and Supply Chain Career Opportunities Operations manager Supply chain manager Production analyst Schedule coordinator Production manager Industrial engineer Purchasing manager Inventory manager Quality manager
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1-13 OM-Related Professional Societies APICS - The Association for Operations Management American Society for Quality (ASQ) Institute for Supply Management (ISM) Institute for Operations Research and Management Science (INFORMS) The Production and Operations Management Society (POMS) The Project Management Institute (PMI) Council of Supply Chain Management Professionals (CSCMP)
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1-14 Process Management Process - one or more actions that transform inputs into outputs Process - one or more actions that transform inputs into outputs Three Categories of Business Processes: Upper-management processes These govern the operation of the entire organization. Operational processes These are core processes that make up the value stream. Supporting processes These support the core processes. LO 1.5 LO 1.5
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1-15 Supply & Demand Supply Supply Demand Demand > Supply Supply Demand Demand < < Supply Supply Demand Demand = = Wasteful Costly Wasteful Costly Opportunity Loss Customer Dissatisfaction Opportunity Loss Customer Dissatisfaction Ideal Ideal Operations & Supply Chains Operations & Supply Chains Sales & Marketing Sales & Marketing LO 1.5 LO 1.5
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1-16 Process Variation Four Sources of Variation: Variety of goods or services being offered The greater the variety of goods and services offered, the greater the variation in production or service requirements. Structural variation in demand These are generally predictable. They are important for capacity planning. Random variation Natural variation that is present in all processes. Generally, it cannot be influenced by managers. Assignable variation Variation that has identifiable sources. This type of variation can be reduced, or eliminated, by analysis and corrective action.
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  • Fall '17
  • Emily Yoon

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