Production and Operation Man

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ACourse Name: Production and Operations Management
Introduction to Operations Management

TABLE OF CONTENTS
LEARNING OBJECTIVES ...................................................................................2 ABSTRACT ..........................................................................................................2 1.1 INTRODUCTION ............................................................................................3 1.1.1

What is Operations Management?.................................................................. 4 1.2 WHY IS OPERATION MANAGEMENT IMPORTANT? .................................7 1.3 HISTORICAL MILESTONES IN OPERATION MANAGEMENT ....................8 1.3.1 Industrial Revolution............................................................................................... 8 1.3.2 Post-Civil War Period.............................................................................................. 8 1.3.3 Scientific Management ............................................................................................ 9 1.3.4 Human Relations and Behavioralism................................................................... 10 1.3.5 Operations Research.............................................................................................. 10 1.3.6 The Service Revolution.......................................................................................... 11 1.3.7 The Computer Revolution..................................................................................... 13 1.3.8 Today’s Development ............................................................................................ 13 1.4 HOW TO MAKE DECISION IN OPERATION MANAGEMENT....................14 1.4.1 Strategic Decisions ................................................................................................. 14 1.4.2 Operating Decisions ............................................................................................... 14 1.4.3 Control Decisions ................................................................................................... 15 SUMMARY .........................................................................................................16 ADDITIONAL MATERIALS ................................................................................17

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Course Name: Production and Operations Management
Introduction to Operations Management

LEARNING OBJECTIVES
At the end of this chapter, you will be able to:
Define the term operation management
Identify three basic functional areas of organizations and describe how they interrelate Understand the important of operation management
Describe the historical evolution of operation management
Understand and know to make decision in operation management.

ABSTRACT
For decades, companies have struggled with the seemingly competing forces of excellent customer service and best-in-class operational cost. The prevailing view dictated that customer satisfaction required a high price and aftermarket service was a necessary evil. Only recently have companies realized that they can run their service business as a profit center, making both their customers and their shareholders happy. The advantages of achieving excellence in service supply chain management, which includes those repairs, planning, sourcing, and logistics activities associated with servicing the equipment-installed base can be compelling. They include increased customer satisfaction and retention, product sales, and service contract revenue as well as higher margins.

In this topic, students will be exposed to the definition of operations management, the basic functions of business organizations and they will look at the production system model. Then, students will learn on why operation management is important as well as to look at the developments in operations management. Finally, students will learn on the categories of decisions that would help...
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