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Introduction to Operations Management Chapter

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This chapter introduces operations management as the management of an organization's production system, which takes inputs and converts them into outputs. It discusses the historical milestones in operations management, from the Industrial Revolution to modern developments like scientific management, behavioralism, and the computer and service revolutions. Finally, it outlines how operations management is studied as a system involving inputs, conversion processes, and outputs, and the three levels of decisions - strategic, operating, and control - that operations managers must make.

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Chapter 1 ,[object Object]
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object]
Introduction ,[object Object],[object Object],[object Object],[object Object]
Organizational Model Marketing MIS Engineering HRM QA Accounting Sales Finance OM
Entry-Level Jobs in OM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Historical Milestones in OM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Industrial Revolution ,[object Object],[object Object],[object Object],[object Object]
The Industrial Revolution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Post-Civil War Period ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Scientific Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Scientific Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Human Relations and Behavioralism ,[object Object],[object Object],[object Object]
Operations Research ,[object Object],[object Object],[object Object],[object Object]
The Service Revolution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Computer Revolution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Today's Factors Affecting OM ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Studying Operations Management ,[object Object],[object Object]
Operations as a System Inputs Outputs Conversion Subsystem Production System Control Subsystem
Inputs of an Operations System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conversion Subsystem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Outputs of an Operations System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Production as an Organization Function ,[object Object],[object Object],[object Object]
Decision Making in OM ,[object Object],[object Object],[object Object]
Strategic Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object]
Operating Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object]
Control Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object]
What Controls the Operations System? ,[object Object],[object Object],[object Object]
Wrap-Up: World Class Practice ,[object Object],[object Object],[object Object],[object Object]
End of Chapter 1

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Introduction to Operations Management Chapter

Editor's Notes

  1. 1700’s Cottage Industry.... Machine power for human power.... factory system which resulted in greater productivity. 1790 Eli Whitney invented concept of interchangeable parts. Forced consistent production of parts. Variation evil. 1865 -1900 Joint stock companies formed changing capital structure of companies. Expansion into West created demand for products, development of rail lines provided quick, cheap transportation of goods. Also influx of labor from farm to urban centers. Early 1900’s Frederick Taylor developed the concept of Shop System. Henry Ford put concepts into practice with assembly lines that utilized modern scientific management concepts..... Standardized product design, mass production for low mfg. costs, mechanized the lines, specialization of labor, & interchangeable parts. 1927 -32 Hawtorne studies at Western Electric plant demonstrated human factors also impacted production. World War II required enormous qty’s of supplies, people, etc. Operations Research teams formed to develop models to manage the complex logistics. Linear programming, PERT/CPM, forecasting developed/refined. Accelerated after WWII, 2/3’s workforce in service and 2/3’s GNP generated by service industry.
  2. Table 1.5 discusses the concepts, Figure 1.2 shows the model of inputs, conversion, and outputs, and Table 1.6 shows the diversity of production systems. Table 1.7 shows various jobs available in OM. Highly paid, active market right now. More companies recognize strategic importance of OM. E.G.. Assets management..... inventory. Millions of $ tied up that could be applied to NPI, process improvement, R&D. Strategic ... what kind of product, process, and facility... location.. LONG-TERM Operating .... Planning production to meet demand Control .... Day-to-day activity of workers, product, process