GMS 401 Chapter Notes - Chapter 1: Management Information System, Operations Management, Product Design
20 Apr 2016
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Operations management: the management of activities and resources that create goods and services. The purpose of om is to improve efficiency and effectiveness. Efficiency operating at minimum cost and time. Effectiveness achieving quality and timeliness / intended goals. Decrease in operations costs = increase in profits. All areas in an organization are interrelated with om. Manages all the activities directly related to producing goods and services. Manufacturing operations is both goods oriented and services oriented. Responsible for the creation of goods and services using transformation/ To ensure desired outputs are obtained, measurements are taken at variour points then compared with established standards to determine whether corrective action is needed: input transformation output. Use the money generates for r & d, investments, salaries etc. By eliminating waste, cost of transformation decreases and value added increases. Performs activities related to securing funds at favourable prices and allocation funds throughout the organization.
