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Management
TO: All Employees

From: Nakyra Gillen Email: nakyragillen@yahoo.com

Re: Operations Management

Date: April 23, 2013

The objective of this memo is to discuss and apply with examples key concepts and principles of operations management. The topics that will be covered are operations management and completive advantage, improving responsiveness to customers, improving quality, and improving efficiency.

Operations Management and Competitive Advantage

Operations management is the management of any aspect of the production system that transforms inputs into finished goods and services. A production system is the system that an organization uses to acquire inputs, convert inputs into outputs, and dispose of the outputs. Operations managers are managers who are responsible for managing an organization’s production system. Operations managers are responsible for ensuring that an organization has sufficient supplies of high quality, low-cost inputs, and they are responsible for designing a production system that creates high-quality, low-cost products that customers are willing to buy.

Improving Responsiveness to Customers

Responsiveness to customers refers to actions taken to meet the demands and needs of customers. Organizations produce outputs that are consumed by customers. All organizations, profit seeking or not-for-profit, have customers. Without customers, most organizations would cease to exist because customers are vital to the survival of most organizations, managers must correctly identify customers and promote organizational strategies that respond to their needs.

The credo pf pharmaceutical company Johnson & Johnson’s, for example begins “We believe out first responsibility is to the doctors, nurses, and patients, to mothers and fathers and all others who use our products and services. Given that satisfying customer demands is central to the survival of an organization, an important question is,

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