Chapter 1 – Operations and Productivity
PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e
© 2008 Prentice Hall, Inc. 1–1
Outline
Global Company Profile: Hard Rock
Cafe What Is Operations Management? Organizing to Produce Goods and Services Why Study OM? What Operations Managers Do
How This Book Is Organized
© 2008 Prentice Hall, Inc. 1–2
Outline - Continued
The Heritage of Operations
Management Operations in the Service Sector
Differences between Goods and
Services Growth of Services Service Pay
Exciting New Trends in Operations
Management
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Outline - Continued
The Productivity Challenge
Productivity Measurement Productivity Variables Productivity and the Service Sector
Ethics and Social Responsibility
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Learning Objectives
When you complete this chapter you should be able to: 1. Define operations management 2. Explain the distinction between goods and services 3. Explain the difference between production and productivity
© 2008 Prentice Hall, Inc.
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Learning Objectives
When you complete this chapter you should be able to: 4. Compute single-factor productivity 5. Compute multifactor productivity 6. Identify the critical variables in enhancing productivity
© 2008 Prentice Hall, Inc.
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The Hard Rock Cafe
First opened in 1971
Now – 121 restaurants in over 40 countries
Rock music memorabilia Creates value in the form of good food
and entertainment 3,500+ custom meals per day in Orlando How does an item get on the menu? Role of the Operations Manager
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What Is Operations Management?
Production is the creation of goods and services Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into