This chapter introduces operations management as the design, operation, and improvement of systems that create and deliver a company's primary products and services. It defines key terms like transformation processes, goods, services, core services, and value-added services. The chapter also discusses why operations management is important, provides a brief history of its development, and outlines current issues in the field like global supply chain coordination and managing the customer experience.

2. Chapter 1 Introduction to the Field

3. Operations Management Why Study Operations Management? Transformation Processes Defined Operations as a Service The Importance of Operations Management Historical Development of OM Current Issues in OM OBJECTIVES

4. What is Operations Management? Defined Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services

5. Why Study Operations Management? Business Education Systematic Approach to Org. Processes Career Opportunities Cross-Functional Applications Operations Management

6. What is a Transformation Process? Defined A transformation process is defined as a user of resources to transform inputs into some desired outputs

7. Transformations Physical--manufacturing Locational--transportation Exchange--retailing Storage--warehousing Physiological--health care Informational--telecommunications

8. What is a Service and What is a Good? “ If you drop it on your foot, it won’t hurt you.” (Good or service?) “ Services never include goods and goods never include services.” (True or false?)

9. OM in the Organization Chart Operations Plant Manager Operations Manager Director Manufacturing, Production control, Quality assurance, Engineering, Purchasing, Maintenance, etc Finance Marketing

10. Core services are basic things that customers want from products they purchase Core Services Defined

11. Core Services Performance Objectives Operations Management Flexibility Quality Speed Price (or cost Reduction)

12. Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way Value-Added Services Defined

13. Value-Added Service Categories Operations Management Information Problem Solving Sales Support Field Support

14. The Importance of Operations Management Synergies must exist with other functional areas of the organization Operations account for 60-80% of the direct expenses that burden a firms profit.

15. Historical Development of OM JIT and TQC Manufacturing Strategy Paradigm Service Quality and Productivity Total Quality Management and Quality Certification

16. Historical Development of OM (cont’d) Business Process Reengineering Supply Chain Management Electronic Commerce

17. Current Issues in OM Coordinate the relationships between mutually supportive but separate organizations. Optimizing global supplier, production, and distribution networks. Increased co-production of goods and services

18. Current Issues in OM (cont’d) Managing the customers experience during the service encounter Raising the awareness of operations as a significant competitive weapon

19. End of Chapter 1