BU121 Chapter Notes - Chapter 7: Manufacturing Resource Planning, Tim Hortons, Operations Management
Document Summary
Production is turning inputs into outputs: managing this conversion process is called operations management. Operations management: management of the production process: main component of effective operations management is focusing on quality and customer satisfaction, operations managers control around 3/4ths of a company"s assets (ex. Inventories, machinery, building facilities) and make decisions that affect wages and benefits. They work closely with marketing, finance, accounting and hr. Challenge: combining people and resources to produce high-quality goods and services in a timely manner at a reasonable cost. Types of decisions that operations management makes: strategic (production) planning. Managers decide when, where and how production will occur. Obtains resources and determines locations of operations: tactical (production) control. Focuses on scheduling, controlling quality and costs and ay to day operations of running a factory or service facility: operational control. Developing more efficient methods of producing the company"s goods or services.
