{"id":926,"date":"2015-05-01T21:56:49","date_gmt":"2015-05-01T21:56:49","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&#038;p=926"},"modified":"2024-05-03T15:32:42","modified_gmt":"2024-05-03T15:32:42","slug":"operations-management","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/operations-management\/","title":{"raw":"Operations Management","rendered":"Operations Management"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Define operations management<\/li>\r\n \t<li>Explain the role of the operations manager<\/li>\r\n<\/ul>\r\n<\/div>\r\nIt's one thing to be in charge of getting\u00a0Thanksgiving dinner on the table, but it's another to manage\u00a0a\u00a0complex manufacturing process. Before we explore\u00a0what's involved in\u00a0such an undertaking, let's begin our study of processes and operations by defining some key terms you will use throughout this module.\r\n\r\n<strong>Production<\/strong>, the creation of products and services, is an essential function in every firm. Production turns inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services. This process is shown below.\u00a0Managing this conversion process is the role of\u00a0<strong>operations management<\/strong>.\r\n\r\n[caption id=\"attachment_15211\" align=\"aligncenter\" width=\"659\"]<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3006\/2015\/05\/31203007\/528537ee3b6f9d6c09171d1a538fdcdbe31fe477.png\"><img class=\"wp-image-15211\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3006\/2015\/05\/31203007\/528537ee3b6f9d6c09171d1a538fdcdbe31fe477-300x143.png\" alt=\"Production Process for Products and Services. The diagram shows that inputs, which are factors of production, include the following: natural resources, human resources, raw materials, and capital. A conversion process takes place, which produces outputs which are products and services. Another way of saying this is that the Production Process for Products and Services converts inputs of natural resources, raw materials, human resources, and capital, into products and services.\" width=\"659\" height=\"314\" \/><\/a> <strong>Production Process for Products and Services<\/strong> (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)[\/caption]\r\n\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/4850e772-7f64-4670-81f4-4466e2df059b\r\n\r\n<\/div>\r\n<strong>Operations managers<\/strong>, the people charged with managing and supervising the conversion process, play a vital role in today\u2019s firm. They control about three-fourths of a firm\u2019s assets, including inventories, wages, and benefits. They also work closely with other major divisions of the firm, such as marketing, finance, accounting, and human resources, to ensure that the firm produces its goods profitably and satisfies its customers. Marketing personnel help them decide which products to make or which services to offer. Accounting and human resources help them face the challenge of combining people and resources to produce high-quality goods on time and at reasonable cost. They are involved in the development and design of goods and determine what production processes will be most effective.\r\n\r\nProduction and operations management involve three main types of decisions, typically made at three different stages:\r\n<ol>\r\n \t<li><em data-effect=\"italics\">Production planning.<\/em>\u00a0The first decisions facing operations managers come at the\u00a0<em data-effect=\"italics\">planning stage.<\/em>\u00a0At this stage, managers decide where, when, and how production will occur. They determine site locations and obtain the necessary resources.<\/li>\r\n \t<li><em data-effect=\"italics\">Production control.<\/em>\u00a0At this stage, the decision-making process focuses on controlling quality and costs, scheduling, and the actual day-to-day operations of running a factory or service facility.<\/li>\r\n \t<li><em data-effect=\"italics\">Improving production and operations<\/em>. The final stage of operations management focuses on developing more efficient methods of producing the firm\u2019s goods or services.<\/li>\r\n<\/ol>\r\n<div class=\"textbox tryit\">\r\n<h3>PRactice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/d247e58d-5309-493a-a95d-29be3521834f\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Define operations management<\/li>\n<li>Explain the role of the operations manager<\/li>\n<\/ul>\n<\/div>\n<p>It&#8217;s one thing to be in charge of getting\u00a0Thanksgiving dinner on the table, but it&#8217;s another to manage\u00a0a\u00a0complex manufacturing process. Before we explore\u00a0what&#8217;s involved in\u00a0such an undertaking, let&#8217;s begin our study of processes and operations by defining some key terms you will use throughout this module.<\/p>\n<p><strong>Production<\/strong>, the creation of products and services, is an essential function in every firm. Production turns inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services. This process is shown below.\u00a0Managing this conversion process is the role of\u00a0<strong>operations management<\/strong>.<\/p>\n<div id=\"attachment_15211\" style=\"width: 669px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3006\/2015\/05\/31203007\/528537ee3b6f9d6c09171d1a538fdcdbe31fe477.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-15211\" class=\"wp-image-15211\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/3006\/2015\/05\/31203007\/528537ee3b6f9d6c09171d1a538fdcdbe31fe477-300x143.png\" alt=\"Production Process for Products and Services. The diagram shows that inputs, which are factors of production, include the following: natural resources, human resources, raw materials, and capital. A conversion process takes place, which produces outputs which are products and services. Another way of saying this is that the Production Process for Products and Services converts inputs of natural resources, raw materials, human resources, and capital, into products and services.\" width=\"659\" height=\"314\" \/><\/a><\/p>\n<p id=\"caption-attachment-15211\" class=\"wp-caption-text\"><strong>Production Process for Products and Services<\/strong> (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)<\/p>\n<\/div>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_4850e772-7f64-4670-81f4-4466e2df059b\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/4850e772-7f64-4670-81f4-4466e2df059b?iframe_resize_id=assessment_practice_id_4850e772-7f64-4670-81f4-4466e2df059b\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<p><strong>Operations managers<\/strong>, the people charged with managing and supervising the conversion process, play a vital role in today\u2019s firm. They control about three-fourths of a firm\u2019s assets, including inventories, wages, and benefits. They also work closely with other major divisions of the firm, such as marketing, finance, accounting, and human resources, to ensure that the firm produces its goods profitably and satisfies its customers. Marketing personnel help them decide which products to make or which services to offer. Accounting and human resources help them face the challenge of combining people and resources to produce high-quality goods on time and at reasonable cost. They are involved in the development and design of goods and determine what production processes will be most effective.<\/p>\n<p>Production and operations management involve three main types of decisions, typically made at three different stages:<\/p>\n<ol>\n<li><em data-effect=\"italics\">Production planning.<\/em>\u00a0The first decisions facing operations managers come at the\u00a0<em data-effect=\"italics\">planning stage.<\/em>\u00a0At this stage, managers decide where, when, and how production will occur. They determine site locations and obtain the necessary resources.<\/li>\n<li><em data-effect=\"italics\">Production control.<\/em>\u00a0At this stage, the decision-making process focuses on controlling quality and costs, scheduling, and the actual day-to-day operations of running a factory or service facility.<\/li>\n<li><em data-effect=\"italics\">Improving production and operations<\/em>. The final stage of operations management focuses on developing more efficient methods of producing the firm\u2019s goods or services.<\/li>\n<\/ol>\n<div class=\"textbox tryit\">\n<h3>PRactice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_d247e58d-5309-493a-a95d-29be3521834f\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/d247e58d-5309-493a-a95d-29be3521834f?iframe_resize_id=assessment_practice_id_d247e58d-5309-493a-a95d-29be3521834f\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-926\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Practice Questions. <strong>Authored by<\/strong>: Robert Danielson. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Production and Operations Management - An Overview. <strong>Provided by<\/strong>: OpenStax. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/cnx.org\/contents\/4e09771f-a8aa-40ce-9063-aa58cc24e77f@8.5\">http:\/\/cnx.org\/contents\/4e09771f-a8aa-40ce-9063-aa58cc24e77f@8.5<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em>. <strong>License Terms<\/strong>: Download for free at http:\/\/cnx.org\/contents\/4e09771f-a8aa-40ce-9063-aa58cc24e77f@8.5<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":78,"menu_order":4,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Production and Operations Management - An Overview\",\"author\":\"\",\"organization\":\"OpenStax\",\"url\":\"http:\/\/cnx.org\/contents\/4e09771f-a8aa-40ce-9063-aa58cc24e77f@8.5\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"Download for free at http:\/\/cnx.org\/contents\/4e09771f-a8aa-40ce-9063-aa58cc24e77f@8.5\"},{\"type\":\"original\",\"description\":\"Practice Questions\",\"author\":\"Robert Danielson\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"79e0b601-9ad4-43bc-9bf5-210c3eb95f65, 9e1b7d8b-e999-4a06-bfe1-ae61542e0f85, 23a1b384-65b7-44e1-8d66-312b88a86f73","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-926","chapter","type-chapter","status-publish","hentry"],"part":91,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/users\/78"}],"version-history":[{"count":43,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/926\/revisions"}],"predecessor-version":[{"id":15333,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/926\/revisions\/15333"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/91"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/926\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/media?parent=926"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=926"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=926"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/license?post=926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}