MAN 4504 Chapter Notes - Chapter 1: Capacity Planning, Facility Location Problem, Operations Management
Document Summary
Process variation: variations can be disruptive to operations and supply chain processes. They are important for capacity planning (seasons like christmas: random variation, natural variation that is present in all processes. Generally, it cannot be influenced by managers: assignable variation, variation that has identifiable sources. This type of variation can be reduced, or eliminated, by analysis and corrective action. Scope of operations management: ranges across the organization, the operations function includes many interrelated activities such as, forecasting, capacity planning, facilities and layout, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities. System design decisions: system design, capacity, facility location, facility layout, product and service planning, acquisition and placement of equipment, these are typically strategic decisions that, usually require long-term commitment of resources, determine parameters of system operation. System operation decisions: system operation, these are generally tactical and operational decisions, management of personnel.
