Chapter 1 Operations Management 11th Edition

Operations Management
The set of activities that creates value in the form of goods and services by transforming inputs into outputs.
Production
Creation of goods and services
Marketing
Generates the demand/ takes the order for a product or service
Finance/Accounting
tracks how well the organization is doing, pays the bills, and collects the money.
Supply chain
A global network of organizations and activities that supplies a firm with goods and services
10 Strategic OM Decisions
-Design of goods and services (ch 5)
-Managing quality (ch 6)
-Process strategy (ch 7)
-Location strategies (ch 8)
-Layout strategies (ch9)
-Human resources (ch10)
-Supply-chain management (Ch11)
-Inventory management (Ch12,14,16)
-Scheduling (Ch13,15)
-Maintenance (Ch17)
Services
Economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, and health services)
Service Sector
The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.
Productivity
the ratio of outputs (goods and services) divided by the inputs (resources, such as labor and capital)
Productivity Variables
The three factors critical to productivity improvement; labor, capital and the art and science of management
Knowledge society
Much of the labor force has migrated from manual work to work based on knowledge
Stakeholders
Those with a vested interest in an organization, including customers, distributors, suppliers, owners, lenders, employees, and community members.