Chapter 1 : Introduction to Operations Management

Production

The creation of goods and services.

Operations Management

(OM) Activities that relate to the creation of goods and services through the transformation of inputs to outputs.

Supply Chain

A global network of organizations and activities that supplies a firm with goods and services.

Ten strategic OM decisions

Design of goods/services

Managing quality/ statistical process control

Process and capacity strategies

Location strategies

Layout strategies

Human resource/ job design and work measurement

Supply chain management

Inventory management

Scheduling

Maintenance

Services

Economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, and health services).

Service sector

The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.

Productivity

The ratio of outputs (goods and services) divided by one or more inputs (such as labor, capital, or management).

Single factor- Productivity

Indicates the ratio of goods and services produced (outputs) to one resource (input).

Multifactor Productivity

Indicates the ratio of goods and services produced (outputs) to many or all resources (inputs).

Productivity Variables

The three factors critical to productivity improvement-labor, capital, and the art and science of management.

Knowledge Societies

A society in which much of the labor force has migrated from manual work to work based on knowledge.

Industry 4.0

The fourth industrial revolution with widespread real-time digitalization.

From raw materials to design to manufacturing to logistics, services, and ultimately the end consumer

Stakeholders

Those with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members.