© Wiley Chapter 1 - Introduction to Operations Management Operations Management by R. Dan Reid & Nada R. Sanders 2 nd Edition © Wiley 2005 PowerPoint Presentation by R.B. Clough - UNH

© Wiley What is Operations Management? The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services

© Wiley Typical Organization Chart

© Wiley Business Information Flow

© Wiley OM’s Transformation Role

© Wiley Productivity

© Wiley Differences between Manufacturers and Service Operations Services: Intangible product Service cannot be inventoried High customer contact Short response time Labor intensive Manufacturers: Tangible product Product can be inventoried Low customer contact Longer response time Capital intensive

© Wiley Service and Manufacturers All use technology Both have quality, productivity, & response issues All must forecast demand Each will have capacity, layout, and location issues All have customers and suppliers All have scheduling and staffing issues

© Wiley Trends in OM Service sector growing to 80% of non-farm jobs- See Figure 1-4 Global operations Demands for higher quality Huge technology changes Time based competition

© Wiley OM Decisions

© Wiley Operations Management Decisions Strategic: Product/Service Design Process Selection Capacity Planning Facility Location Facility Layout Job Design Tactical: Quality Control Demand Forecasting Supply Chain Management Production Planning Inventory Control Scheduling