GMS 401 Chapter Notes - Chapter 1: Operations Management, Capacity Planning, Lead Time
16 Oct 2011
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Operations management: the management of processes or systems that create goods and/or provide services. Forecasting: forecasting the demand for flights and the growth in the industry. Capacity planning: the number of planes to use. Assuring quality: with reservations, safety and in-flight service. Location of facilities: where to provide service and maintenance etc. Buying materials: fuel, food bags, spare parts etc. A large percentage of a company"s expenses occur in om area (om is such a costly part of any organization) Value added: difference between the cost of inputs and the value or price of outputs. Lead time: the time between ordering a good and receiving it. Marketing, finance, design, manufacturing engineering, personnel/human resources, accounting Creation of goods and services involves designing and operating the production process: Standardized: high degree of uniformity, radios, tvs cars etc or automatic car washes, fast food service. Customized: good designed for a specific case, eye glasses, custom fitted clothing, taxi rides, surgery.
