GMS 401 Chapter 1: Chapter 1.docx
19 Apr 2012
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Document Summary
Operations management: the management processes or systems that create goods and/or provide services. A system is a set of interrelated parts that must work together. Process: a series of linked actions, changes, or functions bringing in a result. Types of processes: core (or operational): directly create goods and/or services, support: support core processes, managerial: govern the system. Some activities performed that fall into the realm of operations mgmt: forecasting, capacity planning, scheduling, managing inventories, assuring quality, employee motivation and training, location of facilities, buying materials. Many companies use operations mgmt strategies and actions to improve efficiency and effectiveness. Efficiency: operating at minimum cost and time. Organizations are formed to pursue goals by the efforts of a group of people; they are devoted to producing goods and/or providing services. Three basic functions: operations, finance, and marketing; they each perform different but related activities necessary for the operation of the organization.
