Elaborate summary of the book Operations Management 9th edition. Can be used for the course Operations Management for the first year (second module) of the program International Business Administration at the University of Twente. Contains chapters 1, 2, 3, 6, 7, 8, 10 and 11. Can also be used for ...
,Chapter 1
Operations management = the activity of managing the resources that create and deliver
services and products uses recourses to appropriately create outputs that fulfill defined
market requirements
Operations managers = the people who have particular responsibility for managing some, or
all, of the resources that comprise the operations function (also known as fleet managers
(distribution company), administrative managers (hospital) or store managers
(supermarket))
Operating profit (EBIT) = earnings before interest and tax
EBIT = net sales - operating expenses
Core functions of any organisation
1. Marketing function
2. Product/service function
3. Operations function
Marketing (including sales) function = responsible for communicating the organisation’s
services and products to its markets in order to generate customer requests
Product/service function = responsible for coming up with new and modified serves and
products in order to generate future customer requests
Operations function = responsible for the creation and delivery of services and products
based on customer requests
, Adjustments to the activities of operations managers
- New technologies
- Different supply arrangements
- Increased emphasis on social and environmental issues
Inputs outputs
Transformed resources = the resources that are treated, transformed or concerted in the
process
1. Materials
2. Information
3. Customers
Transforming recourses = the recourses which act upon the transformed recourses
1. Facilities
2. Staff
Process = an arrangement of resources and activities that transform inputs into outputs that
satisfy (internal or external) customer needs
Hierarchy of operations/process hierarchy = the idea to analyze businesses at three levels
1. The process
2. The operation
3. The supply network
There could be many different ‘levels of analysis’, moving upwards from small to larger
processes, right up to the huge supply network that describes a whole industry.
Four smaller processes for the manufacturing process
1. One that designs the sets
2. One that constructs the sets
3. One that acquires the props
4. One that finishes (paints) the set
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