INTRODUCTION TO OPERATIONS MANAGEMENT
STUDY OUTLINE FOR CHAPTER 1
INTRODUCTION TO Operations Management
1. Operations management is…
1) Operations management is the management of systems or processes that create goods and/or provide services.
2. What are the three basic functions in business organizations?
2) 1) Finance
3) 2) Operations
4) 3) Marketing
3. A supply chain consists of
4. What is meant by the term value-added? The value-added is the difference between the cost of inputs and the value or price of outputs. In for profit companies the value-added is measured by the prices that customers are willing to pay for those goods and services.
5. The operations function oversees a transformation or conversion process. Explain briefly. The operations of a company help to transform inputs into outputs; it is done through a conversion process. Some inputs can be land, labor, capital, and information, in turn there is a transformation done to create product or service. One example is a company that makes apple sauce; they must take an input of apples, and transform it to an output of a new product, apple sauce. The point in which the apple is converted into apple sauce is the operation function.
6. Explain the term goods-service continuum. Products are typically neither purely service nor purely goods based.
7. List some ways that manufacturing and systems and service systems differ.
1) Degree of customer contact
2) Labor content of jobs
3) Uniformity of inputs
4) Measurement of productivity
5) Quality Assurance
6) Inventory
8. List some similarities of manufacturing and systems and service systems.
1) Forecasting and capacity planning to match supply and demand
2) Process management
3) Managing variations
4) Monitoring and controlling costs and productivity
5) Supply chain management
6) Location planning, inventory management, quality control, and scheduling
9. What is a process? A process consists of one or more action that transforms
INTRODUCTION TO Operations Management
1. Operations management is…
1) Operations management is the management of systems or processes that create goods and/or provide services.
2. What are the three basic functions in business organizations?
2) 1) Finance
3) 2) Operations
4) 3) Marketing
3. A supply chain consists of
4. What is meant by the term value-added? The value-added is the difference between the cost of inputs and the value or price of outputs. In for profit companies the value-added is measured by the prices that customers are willing to pay for those goods and services.
5. The operations function oversees a transformation or conversion process. Explain briefly. The operations of a company help to transform inputs into outputs; it is done through a conversion process. Some inputs can be land, labor, capital, and information, in turn there is a transformation done to create product or service. One example is a company that makes apple sauce; they must take an input of apples, and transform it to an output of a new product, apple sauce. The point in which the apple is converted into apple sauce is the operation function.
6. Explain the term goods-service continuum. Products are typically neither purely service nor purely goods based.
7. List some ways that manufacturing and systems and service systems differ.
1) Degree of customer contact
2) Labor content of jobs
3) Uniformity of inputs
4) Measurement of productivity
5) Quality Assurance
6) Inventory
8. List some similarities of manufacturing and systems and service systems.
1) Forecasting and capacity planning to match supply and demand
2) Process management
3) Managing variations
4) Monitoring and controlling costs and productivity
5) Supply chain management
6) Location planning, inventory management, quality control, and scheduling
9. What is a process? A process consists of one or more action that transforms