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Key Concepts in Operations Management

Operations management involves planning, organizing, and controlling resources to achieve organizational goals, focusing on the production of goods and services. Key areas include product design, process selection, quality improvement, and decision-making regarding resources, scheduling, and location. Current trends impacting operations management include globalization, e-commerce, supply chain management, and ethical considerations.

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26 views11 pages

Key Concepts in Operations Management

Operations management involves planning, organizing, and controlling resources to achieve organizational goals, focusing on the production of goods and services. Key areas include product design, process selection, quality improvement, and decision-making regarding resources, scheduling, and location. Current trends impacting operations management include globalization, e-commerce, supply chain management, and ethical considerations.

Uploaded by

malatambanrizzamae
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Operations

Management
Learning Outcomes
• Identify the three major functional areas of organizations
and describe how they interrelate
• Compare and contrast service and manufacturing
operations
• Describe the operations function and the nature of the
operations manager’s job
• Differentiate between design and operation of production
systems
• Identify current trends in business that impact operations
management
Operations Management
• The process of planning, organizing, and controlling the resources of an
organization to achieve its goals and objectives. It is responsible for
ensuring that the organization's day-to-day activities are carried out
efficiently and effectively.
• The management of that part of the organization that is responsible for
producing goods and/or services.
• The collective success or failure of companies’ operations functions has
an impact on the ability of a nation to compete with other nations, and
on the nation’s economy.
Operations Management

Organization

Finance Operations Marketing


Operations Management
Scope of Operations Management
Operations Management people are involved in:
• Product and Service Design
• Process Selection
• Selection and Management of Technology
• Design of Work System
• Location Planning
• Facilities Planning
• Quality Improvement
• Purchasing
• Industrial Engineering
• Distribution
• Maintenance
Scope of Operations Management
Forecasting
Capacity Planning
Scheduling
Managing Inventories
Assuring Quality
Motivating and
Training Employees
Locating Facilities
Operations Management and Decision Making
Operations Management professionals make a number of key
decision that affect the entire organization. These includes the
following:
• What: What resources will be needed, and in what amount?
• When: When will each resource be needed? When should the
work be scheduled? When should materials and other
supplies be ordered? When is corrective actions needed?
• Where: Where will the work be done?
• How: How will the product or service be designed? How will
the work be done? How will resources be allocated?
• Who: Who will do the work?
Operations Management and Decision Making

Models are sometimes classified as:


• Physical models look like their real-life counter parts
• Schematic models are more abstract than their
physical counterparts; that is, they have less
resemblance to the physical reality
• Mathematical models are the most abstract, usually
the easiest to manipulate, and they are important
forms of inputs for computers and calculators.
Trends in Operations Management
• The Internet, e-commerce and e-business
• Management of Technology
• Globalization
• Management of Supply Chain
• Outsourcing
• Agility
• Ethical Behavior

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