Chapter 1 Operations Management
* Operations Management – the management of resources and processes required by an organization o produce goods or services. * Operations Function – the part of the organization that has the responsibility for operations management. * Efficiency – a measure of the success of an operation in converting inputs to outputs. * Low operating costs
* Effectiveness - a measure of the success of an operation in producing outputs that satisfy customers. * Ensuring customers receive high value
* Transformation Process the system by which inputs of resources (people, equip, materials, energy, and information) are converted into outputs of goods and service. * Facilities – the resources that are necessary to undertake the operation but are not used up in the operation. Land, buildings, plant, equip, vehicles. * Consumables – the resources that are used up as part of operation. Energy used to power buildings, plant machinery, and the materials necessary to maintain, repair, and operate them. * People – the human resources necessary to undertake the operation. Different Types of Operations
* Materials processing operations – materials are transformed either from 1 form to another, and/or from 1 place to another. * Information processing operations – information is transformed from 1 form to another, and/or from 1 place to another. Accountancy, banking, financial services. * Customer processing operations – the customer is transformed by the operation. Hospitals, hairdressers, education.
* Services – the intangible outputs from an operation
* Tangibility – goods are physical products that can be touched, seen, tasted, or smelled. * Simultaneity - services are distinguishable from goods in that their productions and consumption usually take place simultaneously. * Customer contact – services normally require some degree of contact with the customer *...
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