1. Operations & Productivity

What is production?

the creation of goods and services

What is operations management?

the set of activities that create value in the form of goods and services by transforming inputs into outputs

To create goods and services all organizations perform what 3 essential functions? Briefly explain them.

1. marketing - generates demand

2. production/operations – creates the product

3. finance/accounting – tracks how well the organization is doing, pays bills, collects the money

Give 4 reasons why you should study operations management.

1. it is one of three major functions (marketing, finance, and operations) of any organization

2. we want (and need) to know how goods and services are produced

3. we want to understand what operations managers do

i4. t is is such a costly part of an organization

Name the 8 critical decisions of operations management.

1. design of goods and services

2. managing quality

3. process & capacity design

4. location strategy

5. layout strategy

6. human resources & job design

7. supply chain management

8. inventory, material requirements planning and JIT