Is that part of a business organization that is responsible for producing goods and or services?

1.1 INTRODUCTIONOperationsis that part of a business organization that is responsible for producing goods and/orservices.Goodsare physical items that include raw materials, parts, subassemblies such asmotherboards that go into computers, and final products such as cell phones andautomobiles.Servicesare activities that provide some combination of time, location, form, orpsychological value.Examples of goods and services are found all around you. Every book you read, everyvideo you watch, every e-mail or text message you send, every telephone conversationyou have, and every medical treatment you receive involves the operations function ofone or more organizations. so does everything you wear, eat, travel in, sit on, andaccess the Internet with.The ideal situation for a business organization is to achieve an economic match of supply anddemand. Having excess supply or excess capacity is wasteful and costly; having too little means lostopportunity and possible customer dissatisfaction.The key functions on the supply side are operations and supply chains, and sales andmarketing on the demand side. While theoperationsfunction is responsible for producing productsand/or delivering services, it needs the support and input from other areas of the organization.Business organizations have three basic functional areas, as depicted in Figure 1.1: finance,marketing, and operations. It doesn’t matter whether the business is a retail store, a hospital, amanufacturing firm, a car wash, or some other type of business; all business organizations have thesethree basic functions.Financeis responsible for securing financial resources at favorable prices and allocatingthose resources throughout the organization, as well as budgeting, analyzing investmentproposals, and providing funds for operations.Marketingis responsible for assessing consumer wants and needs,and selling and promoting the organization’s goods or services.Operationsis responsible for producing the goods or providing the services offered by theorganization.To put this into perspective, if a business organization were a car, operationswould be its engine. And just as the engine is the core of what a car does, in abusiness organization, operations is the core of what the organization does.Operations managementis responsible for managing that core. Hence, operationsCBME 101 – OPERATIONS MANAGEMENT W/ TQM BY: MR. JASTIN R. SORIA1

Chapter 1 Objectives:

  1. Define Operations Management (4): The management of systems or processes that create goods and/or provide services.
  1. The three major functional areas of organizations are (4):

����� a. Finance: responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, ��� analyzing investment proposals, and providing funds for operations.

����������� b. Marketing: responsible for assessing consumer wants and needs, and selling ����������� and promoting the organizations goods and services.

����������� c. Operations:management of systems or processes that create goods and/or provide services.

  1. Compare and Contrast service and manufacturing operations (6):

����������� ����������� Service: low percentage of goods, High percentage service, intangible ������������������������������������� ���output

����������� ����������� Manufacturing: high percentage of goods, low percentage service, ����������������������������������������� ���tangible output

����������� ����������� Differences:

����������������������� ����������� Degree of customer Contact

����������������������� ����������� Uniformity of input

����������������������� ����������� Labor contents of job

����������������������� ����������� Uniformity of output

����������������������� ����������� Measurement of productivity

����������������������� ����������� Production and delivery

����������������������� ����������� Quality Assurance

����������������������� ����������� Amount of inventory

  1. Describe the operations function (8): 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. The operations function consists of all activities directly related to producing goods or services.

����� What is the nature of the Operation Manager�s job? (9): The primary function ����� of the operation manager is to guide the system by decision making. He/she is the �������� key figure in the system: he or she has the ultimate responsibility for the creation ��������� of goods or provision of services.

  1. Differentiate between design and operation of production systems (10):

����� The design of a production system includes long-range capacity, process ��������� selection, layout, design of work systems, and location.

����� The operations of a production system include quality control, aggregate planning, �������� inventory management, materials requirement planning, scheduling, supply chain ����� management, and project management. *See Table 1.5 for more information*

  1. Describe the key aspects of operations management decision making (12):���� Operations management make many key decisionsthat affect the entire organization, such as:

����������������� What: What resources will be needed, and in what amounts? How will ����������������������������������� ����� resources be allocated?

����������������� When: When will each resource be needed? When should the work be ����������������������������������� ����� scheduled? When should supplies be ordered? When is corrective ������������������������������������������� action needed?

����������������� Where: Where will the work be done?

����������������� How: How will the product/service be designed? How will the work be ����������������������������������� ����� done (organization, methods, equipment)?

����������������� Who: Who will do the work?

  1. Briefly describe the historical evolution of operations management (18-21):

����� During the industrial revolution (1770s), goods were produced in small shops by ������ craftsmen and their apprentices. In the 18th century a number of innovations ���� substituted machine power for human power (steam engine). The development of ���������� the gauging system gave the industrial revolution a boost, reducing the need for custom made goods. The scientific management era brought Fredrick Taylor�s ��� methods to light. He studied work methods of work to identify the best method ����������� for doing each job. His method�s emphasized maximizing output. In the early 10th ���������� century, mass production, interchangeable parts, and division of labor maximized �������� output in the automobile industry as well as others. The human relations movement emphasized the importance of the human element in job design. �������� Managers became aware of the idea that worker motivation is critical to improve ��������� productivity.�� **See Table 1.7 on page 22 for timeline**

  1. Identify current trends in business that impact operations management (21-24):

����� Although different organizations have different priorities, and are affected ��������� differently by trends, major trends that impact operations management are:

����������������� The internet, ecommerce, e business

����������������� Management of technology

����������������� Globalization

����������������� Management of supply chains

����������������� Agility

�����

�����������������������

WHAT is organization to produce goods and services?

The organization of production is a process whereby production factors such as labour, capital and land are coordinated within and across organizations to produce goods and services. This includes an organization's managerial practices and routines, and its cooperative ties to other organizations.

Which of the type of business is responsible for the creation of goods and services?

Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company's goods and services.

Which management are responsible for the production of goods and services?

Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Who are directly responsible for and oversee the production of goods and services?

In addition, operations managers are involved in planning and controlling the systems that produce goods and services. In other words, operations managers manage the process that transforms inputs into outputs. Figure 10.2 illustrates these traditional functions of operations management.