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1

production

is the creation of goods and services

2

Operations management ( OM)


- creating the highest level of efficient
- converting materials and labor into goods and services

3

three functions of a company

1. marketing
2. production/operations
3. finance/accounting

4

supply chain


is a global network of organizations and activities that supply a firm with goods and services.
- today there is competition between supply chains

5

why study OM?

1. one of the 3 major functions
2. want to know how goods and services are produced
3. to understand what operations managers do
4. because it is such a costly part of an organisation

6

10 OM Decisions

1. Design of goods and services
2. Managing quality
3. Process strategy
4. Location strategies
5. Layout strategies
6. Human resources
7. Supply-chain management
8. Inventory management
9. Scheduling
10. Maintenance

7

Productivity

is the ratio of outputs ( goods and services) divided by the inputs ( resources, such as labor and capital)

units produced/inputs used

8

single factor productivity

the use of just one resources input to measure productivity

9

multifactor productivity

all inputs (capital, labor, material..), also known as total factor productivity

10

productivity increases are dependent on three productivity variables:

1. Labor
2. Capital
3. Management

11

knowledge society

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