OM REVIEWER

• Operations are processes that either provide services or create goods.
• Operations are the core of what a business organization does.
• The traditional view of manufacturing management began in the eighteenth century.
• Adam Smith recommended breaking jobs into subtasks and recognizing workers as having specialized tasks in which they would become highly skilled.
• Adam Smith. Specialization of labor in manufacturing.
• Whitney and others. Interchangeable part, cost accounting.
• Frederick Taylor. Scientific Management
• Walter Shewhart. Statistical quality control (SQC).
• Charles Babbage. Division of labor.
• Frank Gilbreth. Motion of study of jobs.
• Henry L. Gantt. Scheduling techniques.
• F.W. Harris. Economic lot sizes for inventory control.
• Elton Mayo. Human Relation.
• H.F. Dodge & H.G. Roming. Statistical sampling plans.
• P.M. Blacker and others. Operation Research.
• John Mauchlly and J.P. Eckert. Digital Computer.
• G.B. Dantzig, Williams & others. Linear Programming.
• A. Charnes, W.W. Cooper. Mathematical Programming.
• Sperry Univac. Commercial digital computer.
• L. Cummings, L. Porter. Organizational behavior.
• W. Skinner, J. Orlicky, and G. Wright. Integrating operation.
• W.E. Deming and J. Juran. Quality and productivity applications.
• Production Management became an acceptable term from the 1930s to the 1950s.
• 1970. The name shifted from production management to operations management.
• Functions within Business Organizations

  • Operations
  • Finances
  • Marketing
• The operations function consists of all the activities that are directly related to producing goods or providing services. The production function exists not only in manufacturing and assembly operations, which are goods-oriented, but also in such areas as health care, transportation, food handling and retailing, which are primarily service-oriented.
• Finance has been defined as the "art and science of managing money". In as much as most business transactions affect the financial resources of a company, business finance, may be defined as the art and science and managing the financial resources of a business. As such, it is concerned with allocation, procurement and effective utilization of financial resources to enable a business concern to attain its predetermined objectives relative to growth, stability, profitability and liquidity
• The marketing functions main concern is with selling the organizations products or services. Primary marketing activities in addition to selling include advertising and promotion, generally developing and maintaining a market and sales forecasting.
• Production/operations management is the process, which combines and transforms various resources used in the production/operations subsystem of the organization into value added product/services in a controlled manner as per the policies of the organization. Therefore, it is that part of an organization, which is concerned with the transformation of a range of inputs into the required (products/services) having the requisite quality level.
• The set of interrelated management activities, which are involved in manufacturing certain products, is called as production management. If the same concept is extended to services, then the corresponding set of management activities is called as operations management. But nowadays the term operations management is used both for manufacturing & service business.
• Forecasting. Predict the future demand for raw materials, finished goods and services.
• Supply chain management. Manage the flow of materials, information, people and money from suppliers to customers.
• Facility layout and design


  • Determine the best configuration of machines, storage, offices, and departments to provide the highest levels of efficiency and customer satisfaction
• Technology selection


  • Use technology to improve productivity and respond faster to customers
• Quality management


  • Ensure that goods, services, and processes will meet customer expectations and requirements
• Purchasing


  • Coordinate the acquisition of materials, supplies, and services
• Resource and capacity management


  • Ensure that the right amount of resources (labor, equipment, materials, and information) is available when needed
• Process design


  • Select the right equipment, information, and work methods to produce high-quality goods and services efficiently
• Job design


  • Decide the best way to assign people to work tasks and job responsibilities
• Service encounter design


  • Determine the best types of interactions between service providers and customers, and how to recover from service upsets