1. Introduction to Operation Management

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

• Supply Chain Management
• Quality Control
• Product Development
• Operations Management

A sequence of activities and organizations involved in producing and delivering a good or service.

• Supply Chain
• Distribution Center
• Production Line
• Logistics Network

responsible for securing financial resources at favorable prices and allocating

those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations.

• Accountant
• Investment Analyst
• Treasurer
• Finance

responsible for assessing consumer

wants and needs, and selling and promoting the organization’s goods or services.

• Sales representative
• Product manager
• Customer service agent
• Marketing

The difference

between the cost of inputs

and the value or price of

outputs.

• Cost of goods sold
• Value-added

• Revenue
• Market value

Raw vegetables

Metal sheets

Water

Energy

Labor

Building

Equipment

• Inputs

• Plastic materials
• Natural resources
• Processed foods

One or more actions

that transform inputs into

outputs.

• Procedure
• Method
• Variable
• Process

the legal right to control all use of an original work, such as a book, play, movie, or piece of music, for a particular period of time.

• Copyright
• Trademark
• License
• Patent

official legal right to make or sell an invention

• Trade secret rights
• Patent

• Copyright rights
• Trademark rights

1. Upper-management processes.

2. Operational processes.

3. Supporting processes.

• Strategic planning processes
• Financial management processes
• Process Management

• Customer service processes