OM Chapter 1

Organizations Have 3 Basic Functions

Business Service activities that provide some combination of time, location, form or psychological value.

• Air travel, Education, Haircut, Legal counsel

• SPA, Salon, Park, Meat Shop

• bookstore, fastfood, bakery, gasoline station

• Car wash, Burger house, Eat-all-You can buffet, Cafe

A sequence of activities and organizations involved in producing and delivering a good or service, change in ownership

• Supply chain

• Operations

• Manufacturing

• Delivery

Measurements taken at various points in the transformation process.

• Corrective Action

• Error

• Feedback

• Deviation

One or more actions that transform inputs into outputs.

• Delivery

• Supply Chain

• Transportation

• Transformation Processs

These govern the operation of the entire organization Ex. include organizational governance and organizational strategy.

• Upper Level of Management

• Middle Level of Management

• Operations Manager

• Lower Level of Management

The management of systems or processes that create goods and/or provide services

• Control

• Feedback

• Supply Chain

• Operations Management

System that uses minimal amount of resources to produce a high volume of high-quality goods with some variety.

• Lean Systems

• Mass Production

• Control

• Process

It refers to making the right actions and plans in order to improve the business and add value for the customer.

• Efficiency

• Quality

• Effectiveness

• Dependability

It means doing things well at the lowest cost possible.

• Efficiency

• Quality

• Effectiveness

• Dependability