Filled Notes for Chapter 1: Introduction to Operations Management
Highlights of the chapter:
1. Operations as one of the three main functional concerns of most organizations.
2. The role and job of the operations manager as a planner and decision-maker.
3. Different ways of classifying (and understanding) production systems.
4. System design versus system operation.
5. Major characteristics of production systems.
6. Contemporary issues in operations management.
7. Operations as essentially managerial (planning, staffing, etc.)
8. The historical evolution of production/operations management.
9. Manufacturing operations versus service operations.

Reading: The Challenges of Managing Services
1. In comparison to manufacturing industry, services have:
a. Less structured jobs.
b. Higher customer contact.
c. Lower worker skills.
d. Low skill entry-level positions.
e. Higher employee turnover.
f. Higher input variability.
2. Because of the factors listed in the answer to question 1, in service industry it is more difficult to control costs and quality resulting in lower productivity. In addition the risk of customer dissatisfaction is greater and employee motivation is lower.

Reading: Why Manufacturing Matters
1. Since the U.S. economy is becoming more service based, the percentage of employment in manufacturing is declining while the percentage of employment in service industry is increasing. An agile manufacturer is able to switch quickly and economically from one product to another with very little disruption.
2. Yes, the business leaders and the government officials should be concerned about declining percentage of manufacturing jobs because of a variety of reasons including the following:
a. Manufacturing provides 70% of the U.S. exports.
b. The average compensation for a worker from manufacturing industry is 20% greater than the average