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The Management of Systems or Processes That Create Goods And/or Provide Services
The Management of Systems or Processes That Create Goods And/or Provide Services
ORGANIZATION
FINANCE
OPERATIONS
MARKETING
Production Systems use resources to transform inputs into some desired output.
INPUTS
1.
2. 3.
TRANSFORMATION PROCESSES
1. 2. 3. 4.
4. 5. 6.
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
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