Learning Objectives * Define the term operations management * 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 * Describe the key aspects of operations management decision making * Briefly describe the historical evolution of operations management * Identify current trends that impact operations management
* To many people, the term production invokes up images of factories, machines, and assembly lines. Interestingly enough, the field of production management in the past focused almost exclusively on manufacturing management, with a heavy emphasis on the methods and techniques used in operating a factory. * In recent years, the scope of production management has broadened considerably. Production concepts and techniques are applied to wide range of activities and situations outside manufacturing; that is, in services, such as health care, food service, recreation, banking, hotel management, retail sales, etc. * Business organizations typically have three basic functional areas: finance, marketing, and operations. * All types of organizations, a retail store, a hospital, a manufacturing firm, a car wash – have these three basic functions.
* Finance is responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as, budgeting, analyzing investment proposals, and providing funds for operations. * Marketing and operations are the primary, or “line”, functions. * Marketing is responsible for assessing consumer wants & needs, & selling &