Chapter 1 - Operations Management
1. Why should one study operations management?
Operations Management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
• Operations Management is one of the three major functions of any organization, and it is generally related to all the other business functions. All organizations market (sell), finance (account), and produce (operate), and it is important to know how the Operations Management activity functions. Therefore, we study how people organize themselves for productive enterprise.
• We study Operations Management because we want to know how goods and services are produced. The production function is the segment of our society that creates the products we use.
• We study Operations Management to understand what operations managers do. By understanding what these managers do, you can develop the skills necessary to become such a manager. This will help you explore the numerous and lucrative career opportunities in Operations Management.
• We study Operations Management because it is such a costly part of an organization. A large percentage of the revenue of most firms is spent in the Operations Management function. Indeed Operations Management provides a major opportunity for an organization to improve its profitability and enhance its service to society.
2. Identify four people who have contributed to the theory and techniques of operations management.
Eli Whitney (1800)
Frederick W. Taylor (1881)
Henry Ford (1913)
Walter Shewhart (1924)
3. Briefly describe the contributions of the four individuals identified in the preceding question
Eli Whitney (1800)
Eli is credited for the early popularization of interchangeable parts, which was achieved through standardization and quality control. Through a contract he signed with the U.S. government for 10 000 muskets, he was able to command a premium price because of their interchangeable parts.
Frederick W. Taylor (1881)
Known
Operations Management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.
• Operations Management is one of the three major functions of any organization, and it is generally related to all the other business functions. All organizations market (sell), finance (account), and produce (operate), and it is important to know how the Operations Management activity functions. Therefore, we study how people organize themselves for productive enterprise.
• We study Operations Management because we want to know how goods and services are produced. The production function is the segment of our society that creates the products we use.
• We study Operations Management to understand what operations managers do. By understanding what these managers do, you can develop the skills necessary to become such a manager. This will help you explore the numerous and lucrative career opportunities in Operations Management.
• We study Operations Management because it is such a costly part of an organization. A large percentage of the revenue of most firms is spent in the Operations Management function. Indeed Operations Management provides a major opportunity for an organization to improve its profitability and enhance its service to society.
2. Identify four people who have contributed to the theory and techniques of operations management.
Eli Whitney (1800)
Frederick W. Taylor (1881)
Henry Ford (1913)
Walter Shewhart (1924)
3. Briefly describe the contributions of the four individuals identified in the preceding question
Eli Whitney (1800)
Eli is credited for the early popularization of interchangeable parts, which was achieved through standardization and quality control. Through a contract he signed with the U.S. government for 10 000 muskets, he was able to command a premium price because of their interchangeable parts.
Frederick W. Taylor (1881)
Known