GMS 401 Lecture Notes - Lecture 1: Operations Management, Quality Assurance, Job Design
22 Oct 2015
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Document Summary
Operations management: management of systems and the process that create goods. Process is a series of linked actions that will bring a result. Core: directly creates the g/s like maintenance, handing products, reservations. Support: support core processes: forecasting, scheduling managing inventories, assuring quality, buying material. Managerial: govern the system which include capacity planning, location, employee motivation. Companies use operations management strategies to improve their efficiency(minimum cost and time) and effectiveness (achieving your goals) A company needs three functions to be successful: Operations- performs all the activities directly related to producing g/s. Inputs like building, labour machines, customers are used to take finished goods in a transformation process like storing, transportation and cutting. Value added: the difference between the cost of inputs and the value or price of inputs. Value of outputs are measured by the prices that customers are willing to pay for the g/s. Taking out operations that slow down operations increases value added.
