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Introduction to Operations Management
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What is Operations Management?
The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services
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Typical Organization Chart
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OM’s Transformation Role
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Differences between Manufacturers and Service Organizations
Services: Intangible product Product 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
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Similarities-Service/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
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Trends in OM Service sector growing to 80% of non-farm jobs
Global competitiveness Demands for higher quality Huge technology changes Time based competition Work force diversity
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OM Decisions
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Today’s OM Environment
Customers demand better quality, faster deliveries, and lower costs Increased cross-functional decision making Recognized need to better manage information using ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems
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Business Information Flow
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