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The part of a business organization that is responsible for producing goods and services
Operations Management
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Physical items that include raw materials, parts, subassemblies, and final products
Goods
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Activities that provide some combination of time, location, form or psychological value
Services
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Example for goods
- Automobile
- Computer
- Oven
- Shampoo
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Example for services
- Air travel
- Education
- Haircut
- Legal counsel
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A sequence of activities and organization involved in producing and delivering a good or service
Supply chain
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Sequence of supply chain
- 1. Suppliers suppliers
- 2. Direct suppliers
- 3. Producers
- 4. Distributor
- 5. Retailers
- 6. Final customers
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What are the transformational processes?
- 1. Inputs (land, labor, capital, information)
- 2. Transformation/ Conversion process
- 3. Outputs (goods and services)
- 4. Control
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Measurements taken at various points in the transformation process
Feedback
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Comparison of feedback against previously established standards to determine if corrective actions are needed
Control
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Products are typically neither____?
- 1. Purely service
- 2. Purely goods based
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Why do we study operations manager?
- •every aspect of business affects or is affected by operations.
- 2.Many service jobs are closely related to operations such as:
- (Financial services, marketing services, accounting services, information services)
- 3. Better understanding: (to the world you live in, global dependencies of companies and nations, reasons that companies fail or succeed, importance of working with others)
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The basic business organization function
Organization, marketing, operations, finance
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Under finance and operations
- •Budgeting
- •economic analysis of investment
- •proposals
- •provision of funds
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Under marketing operations
- Demand data
- Product and service design
- Competitor analysis
- Lead time data
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OM and supply chain career opportunities
- •Operations manager
- •Supply chain manager
- •Product analyst
- •Schedule coordinator
- •Production Manager
- •Industrial Engineer
- •Purchasing Manager
- •Inventory Manager
- •Quality Manager
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One or more actions that transforms input into output
Process
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3 categories of business process
- •Upper management processes
- •operational process
- •supporting process
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These govern the operation of the entire organization
Upper management process
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Core processes that make up the values stream
Operational processes
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These support the core processes
Supporting process
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4 sources of variations
- •Variety of goods and services being offered
- •structural variation in demand
- • random variation
- •assignable variation
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The Greater the variety of goods and services offered, the greater the variation in production
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