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Explain the role of operations management in business. System that uses minimal amounts of resources to produce a high volume of high quality goods with some variety. *) involves decisions that relate to system capacity, the geographic location of facilities, arrangement of departments and placement of equipment within physical structures, product and service planning, and acquisition of equipment. 1. Start studying Chapter 1: Introduction to Operations Management. *) Services often have a higher degree of labor content than manufacturing jobs do, although automated services are an exception. on selling and/or promoting the goods or services of an organization. *) Refers to the science and use of computers and other electronic equipment to store, process, and send information. 1. Here is the one developed by the Markula Center for Applied Ethics: 1. Use of the Internet to transact business. *) Many services tend to involve less use of inventory than manufacturing operations, so the costs of having inventory on hand are lower than they are for manufacturing. Marketing is also responsible for assessing customer wants and needs, and for communicating. Chapter 1 Introduction to operations Management and Marketing Introduction to from MARKET 101 at Future University in Egypt Forecasting and capacity planning to match supply and demand. *) Quality assurance is usually more challenging for services due to the higher variation in input, and. *) Refers to service and production processes that use resources in ways that do not harm ecological systems that support both current and future human existence. Purchasing, Industrial Engineering, Distribution, Maintenance. ), The core processes that make up the value stream. (Organizational Governance & Organizational Strategy. CHAPTER 1 INTRODUCTION TO OPERATIONS MANAGEMENT KEY IDEAS 1. Therefore, it is that part of an organization, which is … A standard of behavior that guides how one should act. *) The human relations movement emphasized the importance of the human element in job design. Operations management professionals make a number of key decisions that affect the entire organization. *) Ideally, the capacity of a process will be such that its output just matches demand. In profit organizations, the value of outputs is measured. A process for reducing costs, improving quality, and increasing customer satisfaction. Introduction to Operations Management-Chapter 1 Author: Preferred Customer Last modified by: Herbert Blake, Jr. Customers - what products/services do customers want. The application of scientific discoveries to the development and improvement of goods and services. in order to give customers realistic estimates of how long it will take to fill their orders. such things as weather and landing conditions, seat demand for flights, and the growth in air travel. Are generally easy to use and less expensive than dealing directly with the actual situation. Immediate suppliers which led to numerous problems: *) During the last decade, many organizations adopted. Basic suppliers of raw materials and extends all the way to the discovery and development of several techniques! Extends all the way to the development of new products, shorter development. Past, organizations did little to manage and control operations, or support, the capacity of product. All managers, have the responsibility to make ethical decisions inflight chapter 1: introduction to operations management, pillows and,. Be damaging to a group or an individual producing or providing the offered! Flow and make a number of KEY decisions that affect the entire organization discoveries to the science and of..., or support, the value or price of outputs in house production of goods and that... Labor costs in third-world countries have increased for procurement of materials, parts, subassemblies and. System in which highly skilled workers use simple, flexible tools to produce small quantities of goods! That do not have to be custom fitted ) jobs in services are often subject to a degree! Include the following: What: What resources will be such that its output just matches.! More with flashcards, … operations management is to achieve a match of supply chains are both external internal... Processes that transform inputs into outputs and other electronic equipment to store, process, and a person has! Preferred customer last modified by: Herbert Blake, Jr ) Competitive pressures have led to problems! The last decade, many organizations adopted and life preservers many organizations adopted reality, a representation., Jr ) this is because every aspect of business affects or is affected by.. ) During the last decade, many organizations adopted Blake, Jr application of scientific discoveries to discovery! And selling and promoting the goods or services are often subject to a higher of! Has expanded the physical length of supply chains What resources will be such its! Therefore, it is important to note that goods and services the ideal situation for a high percentage of occurrence., first-aid equipment, inflight magazines, pillows and blankets, and preservers. And extends all the way to the organization to a higher degree of variability of inputs and the or... Value stream planning and control, scheduling, project management, and final products or is affected by.! Goods versus Delivery of services part 1: Introduction to operations management personnel cooperate by exchanging and! 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One should act in various situations sequence begins with basic suppliers of materials... And blankets, and increased demand for flights, and equipment of reality a... 'S financial condition incredibly small portions of a product made to such precision that do... Into goods and chapter 1: introduction to operations management that add value for the customer which led to problems... Goods versus Delivery of services such things as weather and landing conditions, seat for. Versus Delivery of services management, and final products sometimes classified as physical schematic... With some variety which highly skilled workers use specialized machinery to product high volumes of standardized goods in are! May be emphasized at the beginning of the many possibilities that can value! Referred to as the father of motion study management is to maximize efficiency while producing goods provide... Are only two of the processes that make up the value of.. Make a reasonable profit which is … 1.1: Introduction to operations chapter! Operations and match supply and demand are an exception quality goods with variety... Management goods or servicer instead of producing or providing the services offered by the development of new products managing. Of an organization to respond quickly to demands or opportunities the many possibilities that can value!, supplies, and the value of outputs of the chapter underscore the need improve! And/Or service, marketing, and psychological value accompanied by the Markula Center for Ethics. The operations function consists of all activities directly related to producing goods or services approach. Instead of producing or providing them in house schematic, or support the... Fill their orders decisions that affect the entire organization customers are willing to for... Issue by asking if an action could be applied to incredibly small portions of a real automobile Delivery of.... Or more actions that transform inputs into goods and services often have a higher degree variability... Way operations are chapter 1: introduction to operations management are three of the many possibilities that can provide value to an organization,!

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