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  • The Management of Systems or Processes That Create Goods And/or Provide Services

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    Smiley Khalid
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    The document discusses operations management, which involves managing the processes that transform inputs into outputs through physical or informational transformation. The key functions of operations management are to add value during the transformation process, where value added is defined as the difference between the cost of inputs and the value of outputs. Operations management aims to ensure the transformation process is efficient and that the output has greater value than the sum of the inputs. It examines how to design and implement systems and processes to get work done as effectively and efficiently as possible within the constraints of the organization.

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    The document discusses operations management, which involves managing the processes that transform inputs into outputs through physical or informational transformation. The key functions of operations management are to add value during the transformation process, where value added is defined as the difference between the cost of inputs and the value of outputs. Operations management aims to ensure the transformation process is efficient and that the output has greater value than the sum of the inputs. It examines how to design and implement systems and processes to get work done as effectively and efficiently as possible within the constraints of the organization.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views14 pages

    The Management of Systems or Processes That Create Goods And/or Provide Services

    Uploaded by

    Smiley Khalid
    The document discusses operations management, which involves managing the processes that transform inputs into outputs through physical or informational transformation. The key functions of operations management are to add value during the transformation process, where value added is defined as the difference between the cost of inputs and the value of outputs. Operations management aims to ensure the transformation process is efficient and that the output has greater value than the sum of the inputs. It examines how to design and implement systems and processes to get work done as effectively and efficiently as possible within the constraints of the organization.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 14

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

    THE THREE BASIC FUNCTIONS OF BUSINESS ORGANIZATIONS

    ORGANIZATION

    FINANCE

    OPERATIONS

    MARKETING

    Production Systems use resources to transform inputs into some desired output.

    INPUTS
    1.
    2. 3.

    Raw Materials Customer Finished product from another system

    TRANSFORMATION PROCESSES
    1. 2. 3. 4.

    Physical (As in Manufacturing) Location (Transportation) Exchange (Retailing) Storage (Warehousing)

    4. 5. 6.

    Physiological (Healthcare) Informational (Telecommunications) Psychological (Entertainment)

    The

    essence of the operations function is to add value during the transformation process.

    Value

    Added the term used to describe the difference between the cost of inputs and the value or price of outputs.

    VALUE ADDED
    INPUTS -Land -Labor -Capital -Information Outputs -Goods -Services

    Transformation/ Conversion Process

    CONTROL

    In

    operations management, we must ensure that the transformation process is performed efficiently and that the output is of greater value than the sum of the input. Operations management is concerned with the design and implementation of system and process for getting work done.

    Operating

    management examines the objective of the firm and work within the constraints of the system to operate most effectively and efficiently.

    CHARACTERISTICS
    1. 2. 3. 4. 5. 6. 7.

    GOODS

    SERVICE High Low High Low Intangible Difficult Low Little More Difficult Not Usually

    8. 9. 10.

    Customer Contract Low Uniformity of Input High Labor Content Low Uniformity of Output High Output Tangible Measurement of Productivity Easy Opportunity to correct High quality problems before delivery Inventory Much Evaluation Easier Patentable Usually

    1. Product and service design 2. Process selection 3. Selection of Management of Technology 4. Design of work systems 5. Location planning 6. Facilities planning 7. Quality improvement of the organizations products and services

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