Analyzing Operations in Business: Issues, Tools, and Techniques

Analyzing Operations in Business: Issues, Tools, and Techniques

Analyzing Operations in Business: Issues, Tools, and Techniques

Analyzing Operations in Business: Issues, Tools, and Techniques

Synopsis

The field of operations management is increasingly recognized as being crucial to the success of a company. The premise of this book is that learning specific analytical techniques can provide a deeper understanding of the problems in operations management than merely reading about these problems. The book is concise while still providing a broad discussion of the issues and details to learn these valuable tools.

Excerpt

The ‘‘operations’’ of an organization are all of the activities directly related to accomplishing the main purpose of the organization, whether it be producing some product or providing some service. In either case the operations system will provide the conversion of certain inputs, such as materials and labor, into certain outputs, either products or services. Thus, the operations function can be distinguished from the other main functional areas of an organization, such as marketing, finance, personnel, and accounting, which are no less vital for the firm’s success but which are less directly related to the organization’s day-to-day pursuit of its main business. Of course, all main functional areas of an organization are intricately entwined; all interact with and provide support for the others, and the boundaries are not always clear between them.

‘‘Operations management,’’ then, refers to performing the traditional managerial functions (planning, organizing, directing, and controlling) on the organization’s operations. Operations managers include those with traditional line authority (the chain of command from the Vice President of Operations down through supervisors and foremen, for example) and those in staff positions (production planning, inventory control, and quality control, for example). Staff personnel are responsible mainly for preparing recommendations regarding the planning, organizing, and control of operations, while line personnel have the actual authority to direct the operations.

Goals of Operations Management

What is the goal of all this managerial activity in the operations area? Obviously, the goals of operations management must be supportive of the goals of

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