Operations Management Strategic Decisions

Study Notes

Define operations management as the set of activities creating value by transforming inputs into outputs.
Identify the ten strategic decisions essential in operations management.
Explore various career opportunities within the field of operations management.
Distinguish between goods and services in the context of operations management.
Explain the concepts of production and productivity and their differences.
Compute single-factor and multifactor productivity metrics.
Recognize critical variables that enhance productivity within operations.

Production refers to the creation of goods and services.
Operations management (OM) involves managing processes that increase efficiency, effectiveness, and value of operations.

Marketing generates demand for products and services.
Production/operations focus on creating products.
Finance/accounting manages the financial health of the organization, including billing and collections.

A global network of organizations involved in the production and delivery of goods and services.
Collaboration among supply chain members is essential to achieve customer satisfaction and competitive advantage.

OM is a core function of organizations alongside marketing and finance.
Understanding OM provides insights into production processes and operational efficiency.
Operations managers play a crucial role in shaping organizational performance.
OM represents a significant cost component within businesses.

Design of Goods and Services: Affects cost, quality, and sustainability.
Managing Quality: Focuses on meeting customer quality expectations through policies.
Process and Capacity Strategy: Involves decisions on production technology and investments.
Location Strategy: Considers proximity to customers, suppliers, and labor.
Layout Strategy: Ensures effective flow of materials and personnel within facilities.
Human Resources and Job Design: Key to recruiting and retaining skilled workers.
Supply Chain Management: Integrates supply chain efforts with organizational strategy.
Inventory Management: Balances ordering and holding inventory to optimize satisfaction.
Scheduling: Manages short-term and intermediate schedules to meet demands.
Maintenance: Ensures reliable operations by considering facility and personnel needs.

Roles include introducing technology, enhancing response time, and managing customer service.
Opportunities exist for improving quality, inventory control, and overall productivity.
Operations management positions impact various sectors due to the universal need for efficient processes.