BU385 Chapter Notes - Chapter 1: Anti-Lock Braking System, Total Quality Management, E-Commerce
Document Summary
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. Using example of an airline: core processes: reservations, boarding and flying the planes, handling luggage, support processes: forecasting, scheduling, managing inventories, managerial processes: capacity planning, locating facilities, employee motivation. Efficiency operating at minimum cost and time. Effectiveness achieving the intended goals (quality and responsiveness) Value added the difference between the cost of inputs and the value or price of outputs. In non-profit organizations, the value of outputs (police, fire protection) is their value to society. In for profit organizations , the value of outputs is measured by the prices customers are willing to pay. A company may find that it is producing an item much earlier than the scheduled delivery. This causes the item to sit in storage longer than necessary which adds no value.
