MGT 1

• 3 BASIC FUNCTIONAL AREAS OF ORGANIZATION

  1. Finance 2. Operation 3. Marketing
• what is operation management ?

  The management of systems or processesthatcreate goods and/or provide services.
• Physical items produced by business organizations

  GOODS
• Activities that provide some combination of time, location, form, and psychological value.

  SERVICES
• Value or Price of Outputs - Cost of inputs


  VALUE-ADDED
• refers totheuseofsimple, flexible tools to produce small quantitiesof customized goods by highly skilledworkers.

  Craft Production System
• - is a method of largescalemanufacturing using machinery.


  Factory System
• Scientific Management that is based on observation, measurement, analysis and improvement of work methods, and economic incentives

  FREDRICK TAYLOR
• He conducted the time motionstudy

  FREDRICK TAYLOR
• used interchangeable parts to develop highly efficient production system.

  • Eli Whitney
• –are components of a product that are standardized according to precise specifications.


  *I N T ERC H A N G E A B L E PARTS
• emphasized the human relations movement.


  Frank and Lilian Gilbreth
• Their work led to the science of ergonomics and industrial psychology.

  Frank and Lilian Gilbreth
• is the study o f People In t heir operating environment, with the goal of increasing productivity and reducing risk of work-related injury.

  ERGONOMICS
• He introduced mathematical models or quantitative tools to be used in the operations area or for decision-making

  Ford Whitman Harris
• introduced Mass Production to the automotive industry.

  Henry Ford
• refers to the used of specialized machinery to produced high volume of standardized goods by low-skilled workers.

  MASS PRODUCTION SYSTEM
• involves decisions that relate to system capacity, the geographic location of facilities, arrangement of departments and placement of equipment within physical structures, product and service planning and acquisition of equipment.

  SYSTEM DESIGN
• involves management of personnel, inventory planning and control, scheduling, project management and quality assurance.

  SYSTEM OPERATION
• KEY ASPECTS OF OPERATIONS MANAGEMENTDECISIONMAKING


  WHO WHAT WHERE WHAT HOW