GMS 401 Chapter Notes - Chapter 1: Operations Management, Mass Customization, Time And Motion Study
21 Jan 2017
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Document Summary
Chapter 1 the challenge of operations management. Production is the creation of goods and services. Operations management (om) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs (production activities). To create goods and services (value), organizations perform three functions: marketing generates demand/takes order for product or service, productions/operations creating the product, finance/accounting tracks monetary success/responsibilities. Why study operations management: to see how people organize themselves for productive enterprise, to see how goods and services are produced, to understand what operations managers, do, because it is a very costly part of an organization. Services includes repair and maintenance, government, food and lodging, transportation, insurance, trade, financial, real estate, education, law, medicine, entertainment, and other professional occupations. Inconsistent product definition: operations are similar for both since both have quality standards established. Growth of services: services constitute the largest economic sector. Service pay: service managers for airlines, perhaps, get paid very well.
