GMS 401 Study Guide - Midterm Guide: William Ouchi, Elton Mayo, Enterprise Resource Planning
24 Oct 2012
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Operations management - the management of processes or systems that create goods and or provide services. Process - a series of linked actions, changes or functions bringing about a result. There are three types of processes: core - directly create goods and or services support - support core processes. Example: for an airline company, core processes include reservations, boarding and flying the plane, handling the luggage etc. Support processes include forecasting, scheduling, managing inventories etc. Managerial processes include capacity planning, locating facilities and employee motivation. Companies use om to improve: efficiency - operating at minimum cost and time effectiveness - achieving quality and responsiveness. A typical organization has three basic functions: operations - performs all the activities directly related to producing goods or providing services; this function is the core of most organizations and involves the conversion of inputs into outputs. Value added - the difference between the cost of inputs and the value or price of outputs.
