COMM 225 Chapter Notes - Chapter 1: Operations Management, Lead Time, Cash Flow
19 Jan 2017
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Document Summary
Operations management: the management of activities and resources that create goods and/or provide services. Companies use operations management strategies, tactics, and actions to improve their efficiency and effectiveness. Large percentage of expenses occur in the operations area, such as purchasing materials, and workforce salaries more efficient operations can result in large increases in profit. Many management positions are in operations management. All other departments in a company, finance, marketing, accounting etc. are all interrelated with operations management activities. Typical organization has 3 basic functions: operations, finance, and marketing. The functions must interact to achieve the goals and objectives of the organization. Manages all activities directly related to producing goods or providing services. Exists in both manufacturing operations, and in industries. Core of most organizations: responsible for the creation of an organization"s goods or services. Inputs are used to obtain finished goods or services using one or more transformation/conversion process. Process: a sequence of activities/operations such as cutting, welding, and assembly.
