MGCR 472 Chapter Notes - Chapter 1: Operations Management, Service Design, Capacity Planning
6 Aug 2017
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Document Summary
The operations function in business organizations is responsible for producing goods and providing services. It is a core function of every business. Operations consists of processes that convert inputs into outputs. Failure to manage those processes effectively will have a negative impact on the organization. Supply chains are the sequential system of suppliers and customers that begins with basic sources of inputs and ends with final customers of the system. Operations and supply chains are interdependent one couldn"t exist without the other, and no business organization could exist without both. Operations management involves system design and operating decisions related to: product and service design, capacity planning, process selection, location selection, work management, inventory and supply management, production planning, quality assurance, scheduling, project management. The historical evolution of operations management provides interesting background information on the continuing evolution of this core business function. A key goal of business organizations is to achieve an economic matching of supply and demand.
