COMM 225 Chapter Notes - Chapter 1: Production Planning, Outsourcing, Capacity Planning
31 Jan 2017
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Document Summary
Operations management: management of processes & the systems that create goods & services. A typical organization has 3 basic functions: finance, operations, and marketing. Operations: performs all the activities directly related to producing goods or providing services. Hence, it exists both in fabrication & assembly operations (goods oriented) and areas like health care, transportation, restaurant, retailing (service oriented). The essence of om is to add value during the transformation process. Value added describes the difference between the cost of inputs & the value/price of outputs. The greater the value added, the greater the efficiency. Om is involved in designing, planning, executing, & controlling the elements that make up the processes. Lead time: time between ordering a g/s and receiving it. System design: decisions that relate to g/s design, system capacity, geographic location of facility, arrangement of departments & placement of equipment within physical structures, and acquisition of equipment. Om managers require both technical & behavioural competence.
