Operations management is identified within the organizational chart and its role in the organization is defined. Chapter one presents a concept map and outlines the textbook chapters. The chapters are grouped by the key themes of strategic planning, project management, decision analysis, quality, supply chain management, and e-commerce. | Chapter 1 Introduction to the Field Operations Management Why Study Operations Management? Transformation Processes Defined Operations as a Service The Importance of Operations Management Historical Development of OM Current Issues in OM OBJECTIVES 2 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? Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications Operations Management What is a Transformation Process? Defined A transformation process is defined as a user of resources to transform inputs into some desired outputs Transformations Physical--manufacturing Locational--transportation Exchange--retailing Storage--warehousing Physiological--health care Informational--telecommunications 7 What is a Service and What is a Good? “If you drop it on your . | Chapter 1 Introduction to the Field Operations Management Why Study Operations Management? Transformation Processes Defined Operations as a Service The Importance of Operations Management Historical Development of OM Current Issues in OM OBJECTIVES 2 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? Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications Operations Management What is a Transformation Process? Defined A transformation process is defined as a user of resources to transform inputs into some desired outputs Transformations Physical--manufacturing Locational--transportation Exchange--retailing Storage--warehousing Physiological--health care Informational--telecommunications 7 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?) 8 OM in the Organization Chart Operations Plant Manager Operations Manager Director Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc Finance Marketing 8 Core services are basic things that customers want from products they purchase Core Services Defined 11 Core Services Performance Objectives Operations Management Flexibility Quality Speed Price (or cost Reduction) Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way Value-Added Services Defined 12 Value-Added Service Categories Operations Management Information Problem Solving Sales Support Field Support The Importance of Operations Management Synergies must exist with other functional areas of the organization Operations account for 60-80% of the direct expenses that burden a .
