1. 1 Operations Management

2. 2 Organization Three Legged Stool Finance Operations Marketing

3. 3 Operations Management Management of systems Management of processes For the creation of goods and/or services

4. 4 Function of Operations Transform or convert inputs to outputs Inputs PeopleMaterials Tools & machines EnergyInformation FinancesTime

5. 5 Transformation Conversion of inputs to desired output “Value added” process Measurement is the dollar Value added is greater than cost

6. 6 Goods vs. Services Production of goods results in an object with mass Service delivery implies an act

7. 7 Is it a Good or Service Degree of customer contact Uniformity of input Uniformity of output Labor Content of job Measurement of productivity Production and delivery Quality assurance Amount of inventory

8. 8 Scope of Operations Management Forecasting Capacity planning Scheduling

9. 9 Scope of Operations Management Managing inventories Assuring quality Motivating and training employees Locating facilities

10. 10 Operation Function All activities directly related to: Producing Goods Providing Services

11. 11 Decisions Guidance by decision making Design of system Operation of system

12. 12 In addition Purchasing Industrial Engineering Distribution Maintenance

13. 13 At the Core Operations is the reason for existence Additional functions are supporting Finance—Marketing Half of all employees in Nation work in operations

14. 14 Why Study Operations Mgmt? Organizations operate most efficiently when all functions work together Requires an understanding of individual role and the role’s or functions of others

15. 15 Leads to: Exchange of information Cooperative decision making Stronger Organization = Success