Scribd
Upload
140 views

Chapter 1 - Productions and Operation Management - Question 1

Define operations management and briefly explain 3 basic functions of organisation?

Uploaded by

AbdulAzeem
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
140 views

Chapter 1 - Productions and Operation Management - Question 1

Define operations management and briefly explain 3 basic functions of organisation?

Uploaded by

AbdulAzeem
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

Introduction to

Operations
Management
(Lecture 1)

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent o f McGraw-Hill Education.

1)Basic functions of business organizations


 Business organizations have three basic functional
areas:

 It doesn’t matter whether the business is a retail store,


a hospital, a manufacturing firm, a car wash, or some
other type of business; all business organizations have
these three basic functions.
1-2
1.1) Finance Function
 Finance is responsible for securing financial resources
at favorable prices and allocating those resources
throughout the organization,
 In addition to it, finance function is also responsible
for:
 budgeting,
 analyzing investment
proposals,
 and providing funds
for operations.

1-3

1.2) Marketing Function


 Marketing and operations are the primary, or “line,”
functions.
 Marketing is responsible for assessing consumer
wants and needs, and selling and promoting the
organization’s goods or services.

1-4
1.3) Operations Function
 Operations function is that part of business which is
responsible for producing the goods or providing
the services offered by the organization.
 In a business organization, operations is the core of
what the organization does.
 For example: If a business organization were a car,
operations would be its engine. And just as the engine
is the core of what a car does.

OPERATIONS MANAGEMENT IS RESPONSIBLE FOR


MANAGING THAT CORE.
1-5

1.5) Definition of operations management


 The management of systems or processes that create
goods and/or provide services (By William Stevenson).
 Operations management is the administration of
business practices to create the highest level of
efficiency possible within an organization in order to
increase profit (By Will Kenton).

1-6
1.6) Creating Goods/Providing Services
 The creation of goods or services involves transforming
or converting inputs into outputs.

1-7

1.7) Creating Goods/Providing Services – Example 1

1-8
1.7) Creating Goods/Providing Services – Example 2

1-9

1-10
THANK YOU

1-11

You might also like