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GMS 401 Study Guide - Final Guide: Operations Management, Customer Service, Human Resources

Global Management Studies
Course Code
GMS 401
Wally Whistance- Smith
Study Guide

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Week 1
Operations Management
A process by which objectives are achieved through the use of resources. Management
almost always involves dealing with:
Conflicting objectives
Limited resources
Those activities within an organization that are directly related to providing goods or
services to customers
Production is the creation of goods and services
Operations management (OM) is the set of activities that create value in the form of goods and
services by transforming inputs into outputs
Organizing to Produce Goods and Services
Essential functions:
Marketing generates demand
Production/operations creates the product
Finance/accounting tracks how well the organization is doing, pays bills, collects the
Why study Operations Management?
OM is one of three major functions of any organization. We want to study how people organize
themselves for productive enterprise
We want (and need) to know how goods and services are produced
We want to understand what operations managers do
OM is such a costly part of an organization
What Operations Managers Do
Basic Management Functions
The Critical Decisions
1. Design of goods and services
a. What goods or services should we offer?
b. How should we design these products and services?
2. Managing quality
a. How do we define quality?
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b. Who is responsible for quality?
3. Process and capacity design
a. What process and what capacity will these products require?
b. What equipment and technology is necessary for these processes?
4. Location strategy
a. Where should we put the facility?
b. On what criteria should we base the location decision?
5. Layout strategy
How should we arrange the facility?
How large must the facility be to meet our plan?
6. Human resources and job design
How do we provide a reasonable work environment?
How much can we expect our employees to produce?
7. Supply-chain management
Should we make or buy this component?
Who should be our suppliers and how can we integrate them into our strategy?
8. Inventory, material requirements planning (MRP), and JIT
How much inventory of each item should we have?
When do we reorder?
9. Intermediate and shortterm scheduling
Are we better off keeping people on the payroll during slowdowns?
Which jobs do we perform next?
10. Maintenance
How do we build reliability into our processes?
Who is responsible for maintenance?
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Where are the Operations Managements Jobs
Strategic issues
Response time
Customer service
Cost reduction
Inventory reduction
APICS, the Association for Operations Management
Canadian Institute of Management (C.Mgr)
Standards Council of Canada
Institute for Supply Management (ISM)
Project Management Institute (PMI)
Council of Supply Chain Management Professionals
New Challenges in OM
Organizations in Each Sector
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