GMS 401 Chapter Notes - Chapter 1: Operations Management, Manufacturing Engineering, Material Requirements Planning

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Wally Whistance- Smith

Document Summary

Many companies use operations management strategies, tactics, and actions in order to improve their efficiency and effectiveness. Efficiency refers to operating at minimum cost and fast whereas effectiveness refers to achieving the intended goals (quality). Om activities are at the core of all business organizations. A large percentage of a company"s expenses occur in om area (om is such a costly part of any organization) A large number of all jobs are in om area (purchasing, quality, planning, scheduling, inventory, etc) Activities in all other areas( finance, marketing) are interrelated with om activities. We want (and need) to know how goods and services are produced in order to be able to produce them better. 3 basic functions within an organization operations, finance, and marketing. Operations function: performs all the activities directly related to producing goods or providing services. The essence of operations function is to add value during the transformation process.