OPERATIONS MANAGENIENT CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 1
Chapter 1 Overview: Introduction to the Field CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 2 Chapter 1 Overview: Introduction to the Field
OBJECTIVES Operations Management Why Study Operations Management? Production System Defined Operations as a Service Plan of this book Historical Development of OM Current Issues in OM CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 3 • Operations Management • Why Study Operations Management? • Production System Defined • Operations as a Service • Plan of This Book • Historical Development of OM • Current Issues in OM OBJECTIVES
What is Operations Management? Defined Operations management (oM is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 4 What is Operations Management? Defined Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services
Why Study Operations Management? Systematic Approach to Org. Processes Business Education Operations Career Opportunities Management Cross-Functional Applications CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 5 Why Study Operations Management? Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications Operations Management
6 What is a Production System? Defined A production system is defined as a user of resources to transform inputs into some desired outputs CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 6 What is a Production System? Defined A production system is defined as a user of resources to transform inputs into some desired outputs
7 Transformations Physical--manufacturing Locational--transportation ° Exchange- retailing Storage--warehousing Physiological--health care Informational--telecommunications CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 7 Transformations • Physical--manufacturing • Locational--transportation • Exchange--retailing • Storage--warehousing • Physiological--health care • Informational--telecommunications
8 What is a service and what is a Good? If you drop it on your foot, it won't hurt you. (Good or service?) Services never include goods and goods never include services. ue or false?) CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 8 What is a Service and What is a Good? • “If you drop it on your foot, it won’t hurt you.” (Good or service?) • “Services never include goods and goods never include services.” (True or false?)
9 OM in the Organization Chart Finance Operations Marketing Plant Operations Director Manager Manager Manufacturing, Production control, Quality assurance, Engineering, Purchasing, maintenance etc CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 9 OM in the Organization Chart Operations Plant Manager Operations Manager Director Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc Finance Marketing
Core Services Defined Core services are basic things that customers want from products they purchase CTle McGraw-Hill Companies, Inc, 2004
©The McGraw-Hill Companies, Inc., 2004 10 Core services are basic things that customers want from products they purchase Core Services Defined