•Operations management (OM): the management of an organization’s productive resources or its production system
•Production system: process that converts inputs into finished goods & services
•Conversion process: the predominant activity of a production system
•Primary concern of an operations manager: activities of the conversion process
•Planning –processes needed to operate an existing supply chain
•Sourcing – selection of suppliers that will deliver the goods and services needed to create the firm’s product
•Making – producing the major product or service
•Delivering – logistics processes such as selecting carriers, coordinating the movement of goods and information, and
collecting payments from customers
•Returning – receiving worn-out, excess, and/or defective products back from customers
Historical Milestones in OM
•The Industrial Revolution
•Post-Civil War Period
•Scientific Management
•Human Relations and Behaviorism
•Operations Research
•The Service Revolution
The Computer Revolution
•Order qualifiers are those dimensions that are necessary for a firm’s products to be considered for purchase
by customers
– Features customers will not forego
•Order winners are criteria used by customers to differentiate the products and services of one firm from
those of other firms
- Features that customers use to determine which product to ultimately purchase
Project – the product remains
in a fixed location, equipment
is moved to the product
Workcenter (Job Shop) similar equipment or
functions are grouped
together
Manufacturing cell (Cellular)a dedicated area where
products that are similar in
processing requirements are
produced
Assembly line - work
processes are arranged
according to the progressive
steps by which the product is
made
Continuous process assembly line only the flow is
continuous such as with
liquids
Value of output =
50 student
class
3 credit hours
student
$150 tuition +
$100 state support
credit hour