TAILIEUCHUNG - Lecture Introduction to operations management - Chapter 1: The operations function

In this chapter we will discuss: Why study operations management? definitions of operations management and supply chains, decisions at pizza , operations decisions - a framework, cross-functional decision making, operations as a process, contemporary operations themes. | Operations Management Contemporary Concepts and Cases Chapter One The Operations Function Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Outline Why Study Operations Management? Definitions of Operations Management and Supply Chains Decisions at Pizza . Operations Decisions - A Framework Cross-Functional Decision Making Operations as a Process Contemporary Operations Themes Why Study Operations Management? Cross-functional nature of decisions Operations is a major function in every organization Principles of process thinking can be applied across the business Operations Management is an interesting and challenging field of study Definition of Operations Management The operations function of an organization is responsible for producing and delivering goods or services of value to customers of the organization. Operations managers make decisions to manage the transformation process that converts inputs into desired finished goods or services. Key Points in OM Definition Decisions: The operations manager must decide: Process, quality, capacity, inventory Function: Major functional areas in organizations: Operations, marketing, finance Process: planning and controlling the transformation process and its interfaces Expansion of these points follows on the next slides. Major Decisions at Pizza USA A Framework for OM Process How to produce & deliver? Quality Criteria, measurement & process for achieving? Capacity Physical facilities & labor? Inventory What, when & how much? Definition of Supply Chain Network of manufacturing and service operations that supply one another From raw materials through manufacturing to the end consumer Flows of materials, money, and information Links operations across organizations Cross-Functional Decision Making Operations as the primary function. Other primary functions: Marketing Finance Supporting functions: all others Major cross-functional decision making relationships .

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