GMS 401 Lecture Notes - Lecture 1: Operations Management, Quality Assurance, Capacity Planning

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Payman Ahi

Document Summary

Operations management is the set of activites that creates value in the form of goods and services by transforming inputs into outputs. Activities creating goods and services take place in all organizations. In manufacturing firms, the production activities that create goods are usually obvious. Generates demand: at least takes the order for a product or service (nothing happens until there is a sale) Ex advertising to show that this product/service can satisfy customers needs: production/operations. Ex assembly line, quality control, inventory control, logistics: finance/accounting. E(cid:454) pa(cid:455)roll, (cid:272)o(cid:374)trolli(cid:374)g the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s finances, budgeting, bookkeeping, investments. Services are economic activities that typically produce an intangible product. The service sector is the segment of the economy that includes trade, financial, lodging, government, legal, medical, insurance, real estate transportation and other professional occupations. Goods are: tangible, consistent product definition, low customer interaction, can be stored (inventoried, production and consumption are usually separated, high uniformity of input and output.