OPMT 303 1st Edition Lecture 1 Current Lecture Informal definition the objective of business id to make a product that cost a dime sells for a dollar and is habit forming Ex cigarettes cost nothing to make sell for a lot and it is one of the biggest addictive products on the market Goal of any company measure the effectiveness of making money Ideal situation would be to get an economic match of supply and demand Excess is wasteful and costly Too little could lead to customer dissatisfaction and lost opportunity Operations Management definition activities whereby resources flowing within a defined system are combined and transferred in a controlled manner to add value in accordance with policies communicated by management CONVERSION SYSTEM The creation of goods or services involves transforming or converting inputs into outputs Sometimes more than one transformation process if used on inputs Inputs Transformation Output Inputs are raw materials labor equipment money knowledge information The transformation process involves technological processes such as storing transporting and repairing The output is the goods are services that come from the transformation process Ex Input doctors nurses hospital Transformation examination surgery Output Healthy Patient Throughout the transformation process the product being made is compared to the control to get feedback on the item MANAGER RESPONSIBILITIES 1 2 3 4 planning all future managerial activities to meet the objective of the organization Organizing bringing together the resources Directing turning plans into realities Controlling evaluating the performance and if necessary taking corrective actions GOODS VS SERVICES Goods are physical items produced by business organizations Services are activities that provide some combination of time location form and psychological value GOODS SERVICES Physical durable products intangible perishable Outputs can be inventoried outputs can t be stored use it or lose it Low customer contact needs high customer contact tailored to customers Long response time short response time to meet daily demand Regional to international markets local markets for local demand Large facilities small factories to address individual needs Capital intensive labor intensive Quality easily measured perception quality not measures easily all depends on TYPES OF OPERATIONS Goods producing farming mining power generation construction manufacturing Storage transportation warehousing trucking mail service moving taxis buses hotels and airlines Exchange retailing wholesaling banking renting leasing library loans Entertainment films radio and television concerts recording Communication newspapers radio and tv newscasts telephone TECHNOLOGY The knowledge equipment and tools and procedures used to produce products and services The act of turning anything into a tool machine or procedure with a practical end in view
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