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Chapter 1
Introduction to Production & Operation Management
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OBJECTIVES
Production & Operations Manag ement Why Study POM? Transformation Processes Defined Operationsas a Service The Importanceof Operations
Management
Historical Development of OM Current Issues in OM
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Production System
Transformation Process:
Output:
Product Service
Continuous Feedback:
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Input Output Materials Labour Machines Energy Process Transformation Products Services Information
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Business Education
Operations Management
Career Opportunities
Cross-Functional Applications
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Transformations
Physical--manufacturing Locational--transportation Exchange--retailing Storage--warehousing Physiological--health care Informational--telecommunications
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you.(Good or service?)
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Plant Manager
Operations Manager
Director
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Core Services Defined Core services are basic things that customers want from products they purchase
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Flexibility
Operations Management
Speed
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Value-Added Services Defined Value-added services differentiate the organization from competitors and build relationships that bind customers to the firm in a positive way
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Information
Operations Management
Sales Support
Field Support
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functional areas of the organization Operations account for 60-80% of the direct expenses that burden a firms profit.
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Historical Development of OM
JIT and TQC Manufacturing Strategy Paradigm Service Quality and Productivity Total Quality Manag ement and Quality Certification
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Current Issues in OM
Coordinate the relationships between
services
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