STUDY OUTLINE FOR CHAPTER 1
INTRODUCTION TO Operations Management

1. Operations management Operations management is the management of processes or systems that create goods or provide services. It encompasses forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, buying material and equipment and maintaining them, and more. There are examples of these goods and services all around us. Every book we read, every video we watch, every e-mail we send, every telephone conversation we have, and every medical treatment we receive involves the operations function of one or more organizations.

2. What are the three basic functions in business organizations? http://highered.mcgraw-hill.com/sites/0073041912/student_view0/ebook/chapter1/chbody1/introduction.html

3. What is meant by the term value-added? The amount by which the price or value of an output is increased due to the addition of material, labor, or other resource.

4. The majority of service jobs fall into about seven categories:

• Government

• Wholesale/retail

• Healthcare

• Education

• Financial services

• Personal services

• Business services

5. Name some ways that manufacturing and systems and service systems differ. 1. Jobs in services are often less structured than in manufacturing 2. Customer contact is generally much higher in services compared to manufacturing 3. In many services, worker skill levels are low compared to those of manufacturing employees 4. Services are adding many new workers in low-skill, entry-level positions 5. Employee turnover is high in services, especially in low-skill jobs 6. Input variability tends to be higher in many service environments than in