Operations and Productions Management - the management of systems or processes that create goods and/or provide services
Operations - the part of a business organization that is responsible for producing goods or services
Goods – physical items that include raw materials, parts, subassemblies, and final products
Services- are activities that provide some combination of time, location, form, or psychological value.
Supply Chain – is the sequence of organizations –their facilities, functions and activities –that are involved in producing and delivering a product or service.
Three basic functions of a business organization:
Simple Product Supply Chain example:
1. Suppliers’ supplier
2. Direct Supplier
5. Final customers
Value-Added – is the term used to describe the difference between the cost of inputs and the value of price of outputs
Process – it consists of one of more actions that transform inputs into outputs.
Four basic sources of variation:
1. The variety of goods and services being offered
2. Structural variation in demand – trends and seasonal variations are predictable
3. Random variation – natural variability
4. Assignable variation – caused by defective inputs, incorrect work methods, etc.
Why learn about OPM?
* Because every aspect of business affects or is affected by operations
Competitiveness – it is an important factor in determining whether a company prospers, barely gets by, or fails.
Marketing’s influences on competitiveness:
1. Identifying consumer wants and/or needs
2. Price and quality
3. Advertising and promotion
Operation’s influence on competitiveness:
1. Product and service design
5. Quick Response
7. Inventory Management
8. Supply Chain...