Introduction

Both chains started in 1962 In 1987, Kmart had 2,223 stores to Wal-Marts 1,198. Kmarts sales were $25.63 billion to WalMarts $15.96 billion By 1991, Wal-Marts sales exceeded Kmarts Kmart still had more stores

Diversity and Importance of Operations

Improvements in operations can simultaneously lower costs and improve customer satisfaction. Improving operations often dependent on advances in technology. Can obtain competitive advantage by improving operations. Diversity of operations

Operations
Heart of every organization Operations are the tasks that create value

The Production System

Facilitating Good Concept

Often confusion in trying to classify organization as manufacturer or service Facilitating good concept avoids this ambiguity All organizations defined as service The tangible part of the service is defined as facilitating good Pure services

The Range From Services to Products

Operations Activities
Strategy Output Planning Capacity Planning Facility Location Facility Layout Aggregate Planning Inventory Management Materials Requirements Planning Scheduling Quality Control