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Chapter 1 – Operations and Productivity

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Chapter 1 – Operations and Productivity
Operations Management
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
© 2008 Prentice Hall, Inc. 1–3

Outline - Continued
 The Productivity Challenge
 Productivity Measurement  Productivity Variables  Productivity and the Service Sector

 Ethics and Social Responsibility

© 2008 Prentice Hall, Inc.

1–4

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.

1–5

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.

1–6

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
© 2008 Prentice Hall, Inc. 1–7

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

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