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Flashcards in C1-Basics Of Operations Management Deck (15)
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1

3 Major Functions of Business

FOMM
1. Finance
2. Marketing
3. Operations Management

2

Other business functions

APEHR
1. Accounting
2. Purchasing
3. Engineering
4. Human Resources
(Support the three major functions)

3

What is the function of Marketing?

Responsible in:
a. managing customer demands
b. generating sales for goods and services
c. understanding customer wants and needs

4

What is Operations Management (OM)?

Is the business function that plans, organize, coordinates, and controls the resources needed to produce a company's goods and services.
A management function

5

What is the function of Finance?

It is the one responsible for cash flow, current assets, and capital investments

6

Central core function of every company

Operations Management

7

Role of Operations Management

Transform a company's inputs into the finished goods or services

8

Different inputs

HR-FP-MTI
1. Human Resources
2. Facilities and Processes
3. Materials
4. Technology
5. Information

9

Orchestrating all the resources includes

1. Designing the product
2. Deciding what resources are needed
3. Arranging schedules, equipment, and facilities
4. Managing inventory
5. Controlling quality
6. Designing the jobs to make the product
7. Designing work methods

10

The Transformation Process

Inputs ➡️ Transformation Process ➡️ Outputs
(Customer feedback and Performance Information are used to continually adjust the inputs, the transformation process, and characteristics of the outputs)

11

Value added

The net increase between the final value of a product and the value of all the inputs. (An obvious way to add value is to reduce cost of activities in the transformation process)

12

Efficiency

Means being able to perform activities well and at the lowest possible cost

13

Important role of operations management

1. Analyze all activities
2. Eliminate those that do not add value
3. Restructure processes and jobs to achieve greater efficiency

14

Organization into 2 broad categories

Manufacturing Organizations
Service Organizations

15

Manufacturing Organization distinctions

Produces physical,