Operations Management

Tutorial 1
Any business organization typically
have three basic functional areas, as
the following

Organizati
on
Finance

Operation
Marketing
s

Operations Management: is the part

of a business organization that is
responsible for producing goods and
services.

 The management of systems or

processes that create goods and
provide services.
Finance Tasks: Risk Analysis,
budgeting, profits
Marketing Tasks: Sales, Advertising,
Customers wants and needs
Operation Management: goods,
services, manage, production,
activities, system, Customer
preferences.
Transformation Process:

inputs

Transform
on Proce
Control

Inputs: Raw Materials, Equipment,

Labor, Capital, Information.
Transformation: Surgery, Therapy,
Medication,
Output: Results Achieved
Value Added: (Time + Flexibility+
speed)/Cost

 Manufacture & service Organization

Differs because manufacturing is
Goods-Oriented, Service-Act-Oriented
Differences Between Goods &
Services:
Category
Goods
Degree of
Low
Customer
Labor Content of Low
Jobs
Measurement of
Easy
Productivity
Amount of
Much
inventory
uniformity of
high
inputs
Typical Operations Decisions include:
What resources are needed, and in
what amounts?
When will each resource be needed?
When should the work be scheduled?
When should materials and other
supplies be ordered?

Ser
Hig

Hig

Diff

littl

low

 Where will the work be done?

How will the product or service be
designed? How will the work be
done? How will resources be
allocated?
Who will do the work?