Professional Documents
Culture Documents
Operman CHPTR 1
Operman CHPTR 1
Operations Management (COB 300 C)versus Management Science (COB 291) OM is a field of management Management Science is the application of quantitative methods to decision making in all fields OM decisions are made in the context of the firm as a whole -- starting with customers (i.e., the marketplace) and explicitly considering a firms corporate strategy.
Inputs
RMH - patients BW3 - hungry/thirsty customers General Motors - sheet steel, engine parts JMU - high school students Pier One - shoppers Target Distribution Center - stockkeeping units (SKUs)
Transformations
RMH - health care procedures BW3 - preparation/service of food/drink General Motors - fabrication and assembly of cars JMU - imparting of knowledge and skills Pier One - filling of orders Target Distribution Center - storage and redistribution
Desired Outputs
RMH - healthy individuals BW3 - satisfied customers General Motors - high quality cars JMU - educated and employable individuals Pier One - sales to satisfied customers Target Distribution Center - right item at right place at right time.
Functions must interact to achieve the goals and objectives of the organization. Success depends not only on the individual functional area, but on the interface.
OM/Finance Interrelationship
Budgeting: Operating performance standard costs versus actual costs Economic Analysis: Evaluation of various plant/equipment alternatives Funding/Provision of funds: Cash Flow issues - how much/when
OM/Marketing Interrelationship
Advertising/pricing decisions are made by marketing people. Marketing is closest to customer wants/needs and can communicate these to operations (short and long term requirements). Marketing is in tune with competition.
OM/HR Relationship
Aggregate Planning
Hiring/Firing Decisions Undertime/Overtime Issues
Current Event