Operation and Productions Management

Operation and Productions Management

  • Submitted By: kissesxo
  • Date Submitted: 01/15/2014 5:46 AM
  • Category: Religion
  • Words: 3392
  • Page: 14
  • Views: 1



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:
* Finance
* Operations
* Marketing

Simple Product Supply Chain example:
1. Suppliers’ supplier
2. Direct Supplier
3. Producer
4. Distributor
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
2. Cost
3. Location
4. Quality
5. Quick Response
6. Flexibility
7. Inventory Management
8. Supply Chain...

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