Lecture Introduction to operations management - Chapter 1: The operations function

In this chapter we will discuss: Why study operations management? definitions of operations management and supply chains, decisions at pizza U.S.A, operations decisions - a framework, cross-functional decision making, operations as a process, contemporary operations themes.

Contemporary Concepts and Cases

Chapter OneThe Operations Function 

Why Study Operations Management?

Definition of Operations Management

organization is responsible for producing 

and delivering goods or services of value 

to customers of the organization.  

Key Points in OM Definition

Major Decisions at Pizza USA

Definition of Supply Chain

Cross-Functional Decision Making

Operations as a Process

Transformation (Conversion) Process Input Output

Operations as a Process

Transformation Fabrication

Input Transformation Output

Assembly

Fabrication: making the parts

Operations as a Process

(Figure 1.1)

Transformation (Conversion) Process

Feedback information for control of process inputs and process technology

Relation of Operations to its

Environment(Figure 1.2)

Operations transformation system

CUSTOMERS

COMPETITORS

Contemporary Operations Themes

Globalization: Who took my job?

WHO!?

• …which led to the breakup of the Soviet 

Union in 1991…

• …which led to the closing of U.S. smelters 

Why Study Operations Management?

Definition of Operations Management and Supply Chains

End of Chapter One