Factors affecting women entrepreneurs success

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Introduction to Operations Management

Operations Management

William J. Stevenson

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Introduction to Operations Management

Operations Management

Figure 1.1

The management of systems or processes that create goods and/or provide services
Organization

Finance

Operations

Marketing

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Introduction to Operations Management

What Do Operations Managers Do?
•

What is ‘Operations’?
•

•

a function or system that transforms inputs into outputs of greater value

What is a Transformation Process? a series of activities along a value chain extending from supplier to customer
• activities that do not add value are superfluous and should be eliminated
•

•

What is Operations Management?
•

design, operation, and improvement of productive systems

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Introduction to Operations Management

Value-Added

Figure 1.2

The difference between the cost of inputs and the value or price of outputs.
Value added
Inputs
Land
Labor
Capital

Transformation/
Conversion
process

Outputs
Goods
Services

Feedback

Control
Feedback

Feedback

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Introduction to Operations Management

Goods-service Continuum

Figure 1.3

Steel production
Home remodeling
Auto Repair
Maid Service
Teaching
Automobile fabrication
Retail sales
Appliance repair Manual car wash Lawn mowing

High percentage goods
Low percentage service

Low percentage goods
High percentage service

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Introduction to Operations Management

Goods-service Continuum

Source: Adapted from Earl W. Sasser, R. P. Olsen, and D. Daryl Wyckoff, Management of
Service Operations (Boston: Allyn Bacon, 1978), p.11.

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Introduction to Operations Management

Food Processor

Table 1.2

Inputs

Processing

Outputs

Raw Vegetables
Metal Sheets
Water
Energy
Labor
Building
Equipment

Cleaning
Making cans
Cutting
Cooking
Packing
Labeling

Canned vegetables 1-8