What is the difference between the terms "production management" and "operations management"? Production management deals primarily with the manufacture of goods, whereas operations management encompasses the production of not only goods, but services as well.
How does the function of an operations manager differ from the function of a marketing manager or a finance manager? The operations manager's function is to create the supply of goods, whereas the marketing manager's function is to create the demand for goods, and the finance manager's role is to secure and allocate the capital necessary to produce the goods.
How are these functions similar? Decisions made by all three managers affect all four of the types of operations decisions; therefore a high level of integration is needed between decisions made by the marketing, finance, and operations managers.
How is the operations management field related to the fields of human resources, information systems, or accounting? Much like finance, accounting interacts with all four decision categories in operations, particularly when measurement of operations is required. The human resources function directly affects the skills level of operations personnel, their capacity and availability to perform work, and their ability to work as a team towards common goals. Operations is a major internal customer of information systems, and as a result, these systems generally support specific operations decisions such as capacity determination, forecasting, quality management, inventory control, and scheduling.
Describe the nature of operations management in the following organizations. In doing this, first identify the purpose and products of the organization; then use the four decision types to identify important operations decisions and responsibilities.
a. A college library
Purpose - to make information available to students and faculty
Products - services and goods in the forms of books, periodicals, reference materials, the internet, etc.
Process - decide how the facility is going to be laid out with an emphasis on fiction, non-fiction, reference, periodical, and administrative sections; decide what type of office equipment will be necessary to support the students and staff; determine the process by which materials will be filed, checked in/out, and returned to their proper locations; determine the type of information technology architecture that will be needed to support the circulation process and student internet access; determine what each member of the staff will be responsible for and who will monitor and evaluate their performance
Quality - ensure that materials are up to date and relevant; ensure that staff are available, properly trained and able to assist library patrons in locating and checking in/out materials; ensure that a patron feedback system is in place to monitor student and faculty satisfaction
Capacity - determining the demand for library services and materials will influence the size of the building, what it carries, how many employees the library has, and when those employees are scheduled
Inventory - how many books, magazines, encyclopedias, computers, etc. will the library need to meet the demands of students and faculty
b. A hotel
Purpose - to provide a comfortable overnight stay for guests
Products - services and goods in the forms of premium linens, room service, king sized beds, etc.
Process - decide what type of information architecture will be required to support the guest reservation, payment, check in/out, and entertainment processes; determine what types of equipment will be needed to support the room, housekeeping, and food service divisions; determine job descriptions and performance standards for staff in each of these divisions; decide upon a method for monitoring employee performance and soliciting guest feedback...
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