First Lecture

First Lecture – Operations Management Operations - activities that would transform inputs into outputs. What is Management for Students? Here are their perceptions:  Proper handling of situations  Planning activities  Performing a certain task to achieve a mission  How a manager manages his people  Goals of a manager  Manner of managing  Manage a company What is Operations Management (OM)? Production is the creation of goods and services. OM is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Raw materials Capital

product/good or services

Labor Management = handling Organizational Charts Commercial Bank  Operations  Finance  Marketing Operations  Teller scheduling  Check clearing  Collection Airline  Operations  Finance/Accounting  Marketing Manufacturing  Operations  Finance/Accounting  Marketing Why study OM? OM – 3 major functions of any organization.

 Want (and need) to know how goods and services  Want to understand what managers do  Such a costly part of an organization What Operations Managers do? Basic Management Functions? < Planning < Leading < Organizing < Controlling Where are OM jobs? Plant Managers Quality Managers Process Improvement Consultant Significant Events in OM? Cost focus Quality focus Customization focus