In doing so managers use various approaches from the. It is important to note that goods and services often occur jointly. The part of a business organization that is responsible for producing goods or services. The Goal of Operations Management The goal of operations management is to maximize efficiency while producing goods and services that effectively fulfill customer needs. Describe decisions … - Selection from Operations Management: An Integrated Approach, 5th Edition [Book] is an abstraction of reality, a simplified representation of something. according to managers' decisions on which cities to provide service for, where to locate maintenance facilities, and where to locate major and minor hubs. CHAPTER 1 Introduction to Operations Management LEARNING OBJECTIVES After completing this chapter you should be able to Define operations management. 1-3 Introduction to Operations Management Goods or Services Goodsare physical items that include raw materials, parts, subassemblies, and final products. Operations is that part of an organization responsible for the creation of value in the form of goods and/or services, ideally balancing the supply of these items with customer demand. • Financial statements: accurately representing the organization's financial condition. *) All managers use metrics to manage and control operations. Quantitative information may be emphasized at the expense of qualitative information. Parts of a product made to such precision that they do not have to be custom fitted. *) Increasing globalization has expanded the physical length of supply chains. The difference between the cost of inputs and the value or price of outputs. Physical items produced by business organizations. These govern the operation of the entire organization. One or more actions that transform inputs into outputs. *) Many services tend to involve less use of inventory than manufacturing operations, so the costs of having inventory on hand are lower than they are for manufacturing. Is there more to it than just what is legal? Recognize an ethical issue by asking if an action could be damaging to a group or an individual. Decisions that relate to system capacity, geographic location of facilities, arrangement of departments and placement of equipment within structures, product and service planning and more. For example, having the oil changed in your car is a. A sequence of activities and organizations involved in producing and delivering a good or service. 1. Business organizations have three basic functional areas, for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations. It can be due to variety or variability. In the earliest days of manufacturing, goods were produced using @ craft production: Movement was led by efficiency engineer, Frederick Winslow Taylor. Chapter 5 10. Therefore, it is that part of an organization, which is … *) Purchasing has responsibility for procurement of materials, supplies, and equipment. System that uses minimal amounts of resources to produce a high volume of high quality goods with some variety. A set of interrelated parts that must work together. (Organizational Governance & Organizational Strategy. Parts of a product made to such precision that they do not have to be custom fitted. Introduction to Operations Management-Chapter 1 Author: Preferred Customer Last modified by: Herbert Blake, Jr. 1. *) The chief role of an operations manager is that of planner/decision maker. More specifically, it is the management of the conversion of land, labor, capital, technology and management inputs into desired outputs of goods or services. Capital, labor, and information are used to create goods or services, To ensure that the desired outputs are obtained, an organization takes measurements at various points in. They include purchasing. In non-profit organizations, the value of outputs is measured by, Production of Goods versus Delivery of Services. Purchasing, Industrial Engineering, Distribution, Maintenance. … Principles of Management CHAPTER 1: Definition ,Principles and Basics of Management By: Rafiullah Sherzad Lecturer, Kardan Institute of Higher Education Supply chains are both external and internal to the organization. The following are three of the more important limitations: 1. Chapter 1: Introduction to Operations Management study guide by wregono includes 35 questions covering vocabulary, terms and more. compares them with previously established standards to determine whether corrective action is needed. *) Services deliver and consume at the same time. Chapter 1. *) Operations management people are involved in product and service design, process selection, selection and management of technology, design of work systems, location planning, facilities planning, and quality. *) Service are often subject to a higher degree of variability of output. important in achieving effective use of workers and equipment. Similarities between managing the production of products and managing services: a. • The Utilitarian Principle is that the good done by an action or inaction should outweigh any harm it causes or might cause.
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