Chap 3.2: The relationship between OM and biz objectives

Front

Define OPERATION MANAGEMENT

Back

All the activities in which managers engage to produce goods or services.

Front

Define EFFICIENCY

Back

Refers to how well a business is using its resources to achieve objectives.

OR

Using minimal INPUT to produce maximum OUTPUT

Front

Define EFFECTIVENESS

Back

The degree to which a business achieves its stated objectives

Front

Importance of aligning Operation Management with Business Objectives

Back

Directly impacts revenue, costs, quality of output, and ultimately profits.

Front

How does OM help achieve the business objective of "To make a profit"?

Back

-Implementing technology into the production process reduces labor expenses and increases profit.

- Reduce costs through Just in Time strategies.

Front

How does OM help achieve the business objective of "To increase market share"?

Back

Checking that products are not faulty improves product quality and customer satisfaction.

Front

How does OM help achieve the business objective of "To meet shareholder expectations"?

Back

Creating a website for online sales increases profit and dividends for shareholders.

Front

How does OM help achieve the business objective of "To fulfill a market need"?

Back

Using technology to design new products meets customer needs that are underserved.

Front

How does OM help achieve the business objective of "To fulfill a social need"?

Back

-Recycling waste in production reduces waste and meets environmental preservation needs.

-Minimize waste through lean management.

Front

How does OM help achieve the business objective of "To improve efficiency"?

Back

Automating the production process increases productivity and reduces resource waste.