Operation Management

IT.455.91C_ A03.2

1. Briefly describe the terms operational management and supply chain.

Operational management- is the management of systems or processes that create goods and or provide service.

Supply Chain- is a sequence of activities and organizations involved in producing and delivering a good or service.

2. Identify the three major function areas of business organizations and briefly describe how they interrelate.

Finance, Operations, Marketing

The ideal situation for a business organization is to achieve an economic match of supply

and demand. Having too much supply is wasteful and costly. Have to little can mean lost opportunity and customer dissatisfaction. The key function one the supply side are operations and supply chains, and sales and marketing on the demand side.

5. Briefly discuss each of these terms related to the historical evolution of operation management:

a. Industrial Revolution- A number of innovations in the 18th century changed the face of production forever by substituting machine power for human power. One of the most significant inventions was the steam engine which provided power source to operate machines in factories.

b. Scientific management- A method based on observation, measurement, analysis and improvement of work methods, and economic incentives.

c. Interchangeable parts- Parts of a product made to such precision that they do not have to be custom fitted.

d. Division of labor- The breaking up of a production process into small task, so that each worker performs small portion of the overall job.

6. Why are services important? Why is manufacturing important? What are non-manufactured goods?

Many service activities are essential in goods-producing companies. These include training, human resource management, customer service, equipment repair, procurement, and administrative services. Productions of goods results in a...