OPERATIONS MANAGEMENT AND DECISION MAKING Operating Management focuses on the production and operations within the organization. It is concerned with the inputs and outputs, converting efficiently the raw materials into tangible or intangible products. And by having satisfying product helps to maximize the profit. KEY DECISIONS What: What resources will be needed and in what amounts? Upon the production, capital and natural resources are needed to come up with a better product. And prior to the creation of goods, the materials should be identified and prepared. After deciding on what materials to be considered and bought, the quantity should be also distinguished. When: When will each resource be needed? When should the work be scheduled? When should materials and other supplies be ordered? When is corrective action needed? The estimated timeframe when the materials will be needed, when the production will start and when the products will be finished. Where: Where will the work be done? This tackles about the site or setting where the production will be done. How: How will the product or service be designed? How will the work be done (organization, methods, equipment)? How will resources be allocated? This includes packaging, the process and resource allocation. Who: Who will do the work? The production cannot be done without the people or workers. MODELS Models are the representation of something to make it simple and easy to understand. There are three classification of models namely physical, schematic and mathematical. Physical: real-life replication. One of the great examples is miniature of houses, transportation, human dolls (Mannequins), or ideas converted into a real product. Schematic: the symbolic or graphic representation. Mathematical: using mathematical structures such as equation or formulas, numbers and concepts. QUANTITATIVE APPROACHES Linear programming considers various inequalities relating to real life situations and obtaining the best value that can be chosen under conditions. Inventory model is a mathematical model that helps to distinguish the optimum level of inventories that a business has to maintain such as deciding on the quantity of goods or raw materials to be stored. Project models such as PERT (program evaluation and review technique) and CPM (critical path method) tackle about initiating, planning, executing and controlling activities or large- scale projects to achieve the goals within the specific period of time. Forecasting technique uses past or present data to determine or predict the future. It should be updated based on the changing information. However, this kind of technique is too risky and uncertain. Statistical models monitor the progress and measure the future risks that an organization or business might encounter. PERFORMANCE METRICS Is a measurement which is used to monitor the progress of an organization. It measures its behavior, activities and performance that indicate the overall quality or progress of a business. This includes profits, costs, quality, productivity, flexibility, assets, inventories, schedules, and forecast accuracy. ANALYSIS OF TRADE-OFFS Tackles about the situational decisions that includes losing or gaining a quantity, quality or an important matter upon choosing from the alternatives. There are times that a business has several options and some alternatives to choose from. Having a wise analyzation will elicit a good or an optimal option that stands out among others. The option to be chosen should be the best one. In order to gain something, you have to let go some things. DEGREE OF CUSTOMIZATION Involves innovation in goods and services to entice market and enhance customer satisfaction and increase customer demand. SYSTEMS APPROACH An old practice where a complex concept or work is breaking down into a simple concept to understand it fully and make things work easier. And each interrelated part works together to perform excellently and produce better and organized outcomes. ESTABLISHING PRIORITIES Pareto phenomenon, a practice where a situation is being examined to determine the factors that should be prioritized for its function or impact. HISTORICAL SUMMARY OF OPERATIONS MANAGEMENT