OPM H1 Using operations to
create value
Operations management = the
systematic design, direction, and control of
processes that transform inputs into
services and products for internal, as well
external, customers
Process = any activity or group activities
that takes one or more inputs, transform them, and provides one or more outputs for
its customer
Operation = a group of resources performing all or part of one or more processes
Supply Chain Management = the
synchronization of a firm’s processes with those
of its suppliers and customers to match the flow
of materials, services, and information with
customer demand
Supply Chain = an interrelated of processes
within and across firms that produces a service
or product to the satisfaction of customers
Role of operations in an organization
How Processes work:
Integration between Different Functional
Areas of a Business
- Every process and every person in the organization has customers:
o External suppliers
o Internal suppliers
- Every process and every person in the organization relies on suppliers:
o External suppliers
create value
Operations management = the
systematic design, direction, and control of
processes that transform inputs into
services and products for internal, as well
external, customers
Process = any activity or group activities
that takes one or more inputs, transform them, and provides one or more outputs for
its customer
Operation = a group of resources performing all or part of one or more processes
Supply Chain Management = the
synchronization of a firm’s processes with those
of its suppliers and customers to match the flow
of materials, services, and information with
customer demand
Supply Chain = an interrelated of processes
within and across firms that produces a service
or product to the satisfaction of customers
Role of operations in an organization
How Processes work:
Integration between Different Functional
Areas of a Business
- Every process and every person in the organization has customers:
o External suppliers
o Internal suppliers
- Every process and every person in the organization relies on suppliers:
o External suppliers
