COMM 225 Production and Operations Management Final Notes all what you need to know Concordia University

COMM 225 Production and Operations Management Final Notes all what you need to know Concordia University CHAPTER 1 – INTRODUCTION TO OPERATIONS MANAGEMENT Introduction Operations management: the management of processes that create goods and/or provide services Process: a sequence of activities, usually performed by more than one person, which uses resources and achieves desired results Good: a tangible item Service: an act or work for someone Examples of the 3 processes involved in operations using an airline: Core processes: taking customer reservations, communicating with customers, checking and boarding, in-flight service, and baggage handling Support processes: employee recruitment and training, buying and maintaining aircraft, and buying fuel and spare parts Managerial processes: forecasting travel demand, capacity and flight planning, locating maintenance facilities, scheduling planes/pilots/crew and counter staff/baggage handlers, man- aging inventories, and ensuring that quality standards are met. *Most of the managerial processes fall into the realm of operations management. Companies use operations management strategies, tactics and actions in order to improve efficiency and effectiveness Efficiency: operating at minimum cost and time. Effectiveness: achieving the intended goals (quality and timeliness) Why study operations management? - A large % of company’s expenses occur in the operations area - Number of management jobs are in operations management - activities in all other areas of organizations are interrelated with operations management activities - operations innovations lead to marketplace and strategic benefits Functions within organizations