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MGTA04 notes for chapters 1-4.docx

6 Pages

Management (MGT)
Course Code
Chris Bovaird

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The function of a business is to make a profit Have people- human resources Make things - operations Information- mis, management information systems Operations: defined  The direction and control of processes that transform resources into finished goods or  The management of the creation of goods and services, using the factors of production Why Its Called “Operations” (Not productions)  “Production” implies that Canadian businesses make “products”.  In fact: 80% of Canadians work in “services”  Bankers, doctors, lawyers, professors, accountants: DON’T make products They provide ideas, analyses, information.  But: These things still need to be planned, managed, supplied.  Thus: “operations” Differences between products and services  Products can be stored and made without a customer and should all be the same  Services cannot be stored or made without a customer and should NOTall be the same Operations managers  Demand planning- forecast how much they will need to make  Capacity planning- enough space and workers to meet demand  Location planning- find best location for getting employees, materials, and transport to market  Layout planning- arrange store or factory for best flow of materials  Schedule - to finish on time, start on time Operations: take factors of production and add value or utility by turning them into products How does operations add value?  Fabrication: Cut something in half, bend it. Make a tree into paper.  Assembly: Put pieces/different ingredients together. Make bread and cheese into a sandwich.  Transport: Moving products/raw material from A to B. Move furniture from Halifax to Winnipeg.  Clerical: Add information/advice/packaging knowledge. Turn financial data into an investment analysis.  Chemical: Through heat/cold/mixture change material's composition. Today:  Principle Points Productivity: Explained & defined  Productivity: Some common measures  Productivity: Why it’s important  Quality: Explained & defined  Quality: Why it’s important  Quality: Total Quality Management (TQM) Productivity is the ratio between  Resources and products  Inputs and outputsNational productivity is  GDP of workers or population A country is productive when it has plentiful, cheap, high quality factors of production Business productivity: an individual business' measure of outputs: inputs  Outputs: goods/services  Inputs: labour, $$$$, materials  Higher ratio of output:input means higher products *Productivity: Common Ratios*  Manufacturing: Labour hours / product  Retailing: Sales / square foot  Restaurants: Revenue / table Or Revenue / store Productivity: Why It Matters  People and raw materials cost $$  The more time you spend making a product: the more it costs  The more materials you spend making a product: the more it costs  Operations managers concerned with the best way to “make” things Quality Defined  A product’s fitness for use in terms of offering the features that consumers want.  Meeting or surpassing the customer’s expectations  both mention: customer expectations Benefits of quality:  1. Fewer costs  2. Additional revenues Fewer costs  because no returns, repairs, less time oncustomer service, defective products, and less bureaucracy More revenues  Give the customers what they want: Easy sales, repeat customers, and then u can charge more If customers arem't happy then they complain If customers aren’t happy: They demand repairs They demand refund They stop buying They tell others Unhappy customers: 90% don’t complain!  They just…don’t go back.  Business loses all future sales  Unhappy customers, on average… Tell 9 other people about their experience Businesses must recognize the relationship between quality (make it right the first time, meet expectations) and productivity (fewer defects and fewer repairs) Total Quality Management  Everyone in the business is responsible for ensuring that product/service meets customer needs.  Cheaper to do it properly the first time, then to repair or replace defects. Business must minimise time, cost, and effort of making products Today's Main Points:  Why Businesses need information  Data vs. information vs. knowledge  Information technology: explained  Electronic Information Technologies  Impact of more and better Information Why Businesses Need Info World’s worst Coffee Shop:  Know when to make coffee  Know how much to make  Know when to order sugar World’s worst restaurant:  Know when to order salmon  Know when to order Merlot wine  Know how to cook customer’s steak Data is raw facts and figures, lacking analyses and context ( useless on its own) Examples are: temp is 39, midterm marks is 78 Information is data analyzed and given context Example: My midterm mark was 78%, and the class average was 72%. The highest mark was 82% The temperature is 30○ C. Yesterday it was 28 ○ C. Tomorrow will be 31○ C. Knowledge: Through education and experience, the use of information to make decisions. Examples: My marks are above average. I’m near the top of the class. I won’t drop MGTA04, and I’ll continue my current study habits. It’s very hot. I will buy summer clothes. Management Information Systems Textbook definition:  Systems that support an organization’s managers by providing daily reports, schedules, pla
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