Opm 530 Topic 1 Introduction

OPM 530 TOPIC 1 INTRODUCTION What Is production? - CORRECT ANSWER -Production is the creation of goods and services Characteristics of Goods - CORRECT ANSWER -♦ Tangible product Consistent product definition ♦ Production usually separates from consumption Can be inventoried Low customer interaction What is Operations management? - CORRECT ANSWER -the set of activities that creates value in the form of goods and services by transforming inputs into outputs Services - CORRECT ANSWER -♦ Reselling unusual Difficult to inventory Quality difficult to measure Selling is part of service ♦ Provider, not product is transportable Site of facility important for customer contact Often difficult to automate ♦ Revenue generated primarily from intangible service Marketing - CORRECT ANSWER -generates demand Characteristics of Services - CORRECT ANSWER -♦ Intangible product Produced &consumed at same time Often unique High customer interaction Inconsistent product definition Often knowledge-based Frequently dispersed Operations - CORRECT ANSWER -creates the product Example : Commercial bank (Teller scheduling check clearing transaction processing security) manufacturer (manufacturing, production control, quality control, purchasing) Goods - CORRECT ANSWER -♦ Can be resold Can be inventoried Some aspects of quality measurable Selling is distinct from production Product is transportable Site of facility important for cost Often easy to automate Revenue generated primarily from tangible product Finance/accounting - CORRECT ANSWER -tracks organizational performance, pays bills, collects money Why Study OM? - CORRECT ANSWER -1. OM is one of three major functions of any organization, we want to study how people organize themselves for productive enterprise 2. We want (and need) to know how goods and services are produced 3. We want to understand what operations managers do 4. OM is such a costly part of an organization Essential functions - CORRECT ANSWER -Marketing Operations