Is responsible for producing the goods or providing the services offered by the organization?

1. The sequence begins with basic suppliers of raw materials and extends all the way to the final customer.
2. Facilities might include warehouses, factories, processing centers, offices, distribution centers, and retail outlets.
3. Functions and activities include forecasting, purchasing, inventory management, information management, quality assurance, scheduling, production, distribution, delivery, and customer service.
*) Notice that the value of the product increases as it moves through the supply chain.

*) Variation occurs in all business processes. It can be due to variety or variability.
1. The variety of goods or services being offered. The greater the variety of goods and services, the greater the variation in production or service requirements.
2. Structural variation in demand. These variations, which include trends and seasonal variations, are generally predictable. They are particularly important for capacity planning.
3. Random variation. This natural variability is present to some extent in all processes, as well as in demand for services and products, and it cannot generally be influenced by managers.
4. Assignable variation. These variations are caused by defective inputs, incorrect work methods, out-of-adjustment equipment, and so on. This type of variation can be reduced or eliminated by analysis and corrective action.
*) Variations can be disruptive to operations and supply chain processes. They may result in additional costs, delays and shortages, poor quality, and inefficient work systems.

*) Operations management people are involved in product and service design, process selection, selection and management of technology, design of work systems, location planning, facilities planning, and quality
improvement of the organization's products or services.
*) The operations function includes many interrelated activities, such as forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, and more.
*) example: airline

*) Purchasing has responsibility for procurement of materials, supplies, and equipment.
Close contact with operations is necessary to ensure correct quantities and timing of
purchases.
The purchasing department is often called on to evaluate vendors for quality, reliability, service, price, and ability to adjust to changing demand. Purchasing is also
involved in receiving and inspecting the purchased goods.
*) Industrial engineering is often concerned with scheduling, performance standards, work methods, quality control, and material handling.
*) Distribution involves the shipping of goods to warehouses, retail outlets, or final customers.
*) Maintenance is responsible for general upkeep and repair of equipment, buildings and grounds, heating and air-conditioning; removing toxic wastes; parking; and perhaps security.

*) Physical models look like their real-life counterparts. Examples include miniature cars, trucks, airplanes, toy animals and trains, and scale-model buildings.
@ The advantage of these models is their visual correspondence with reality.
*) Schematic models are more abstract than their physical counterparts; that is, they have less resemblance to the physical reality.
Examples include graphs and charts, blueprints, pictures, and drawings. The advantage of schematic models is that they are often relatively simple to construct and change. @ Moreover, they have some degree of visual correspondence.
*) Mathematical models are the most abstract: They do not look at all like their real-life counterparts.
Examples include numbers, formulas, and symbols.
@ These models are usually the easiest to manipulate, and they are important forms of inputs for computers and calculators.

*) The factory movement was accompanied by the development of several quantitative techniques.
*) F. W. Harris developed one of the first models in 1915: a mathematical model for inventory order size.
*) In the 1930s, three coworkers at Bell Telephone Labs, H. F. Dodge, H. G. Romig, and W. Shewhart, developed statistical procedures for sampling and quality control.
*) In 1935, L.H.C. Tippett conducted studies that provided the groundwork for statistical-sampling theory.
*) At first, these quantitative models were not widely used in industry.
*) After the war, efforts to develop and refine quantitative
tools for decision making continued, resulting in decision models for forecasting, inventory management, project management, and other areas of operations management.
*) During the 1960s and 1970s, management science techniques were highly regarded; in the
1980s, they lost some favor. However, the widespread use of personal computers and user friendly
software in the workplace contributed to a resurgence in the popularity of these techniques.

*) Organizations are increasing their levels of outsourcing,
buying goods or services instead of producing or providing them themselves.
*) As outsourcing increases, organizations are spending increasing amounts on supply-related activities
(wrapping, packaging, moving, loading and unloading, and sorting).
*) A significant amount of the cost and time spent on these and other related activities may be unnecessary. Issues with imported products, including tainted food products, toothpaste, and pet foods, as well as unsafe tires and toys, have led to questions of liability and the need for companies to take responsibility for monitoring the safety of outsourced goods.

Sets with similar terms

Is that part of an organization which produces products of an organization?

Is the sequence of organizations their facilities functions and activities that are involved in producing and delivering a product or service?

Which management is involved with the management of systems and processes that creates goods and or provide services?