1. What Is Operations Management?
Organizing to Produce Goods and Services
What Is Operations Management?
Production is the creation of goods and services
Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs

2. Organizing to Produce Goods and Services
Essential functions:
Marketing – generates demand
Operations –creates the product
Finance/accounting – tracks organizational performance, pays bills, collects money

3. Organizational Functions
Marketing
Gets customers
Operations
creates product or service
© 1995 Corel Corp.
Finance/Accounting
Obtains funds
Tracks money

4. Sample Organization Charts

5. Functions - Bank Commercial Bank Operations Finance/ Accounting
Marketing
Check
Clearing
Teller
Scheduling
Transactions
Processing
Security
Commercial Bank
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6. Functions - Airline Airline Operations Finance/ Accounting Marketing
Ground
Support
Flight
Facility
Maintenance
Catering
Airline
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7. Functions - Manufacturer
Operations
Finance/
Accounting
Marketing
Production
Control
Manufacturing
Quality
Purchasing

8. Organizational Charts
Commercial Bank
Operations
Teller Scheduling
Check Clearing
Transactions processing
Facilities design/layout
Vault operations
Maintenance
Security
Finance
Investments
Real Estate
Accounting
Auditing
Marketing
Loans
Commercial
Industrial
Financial
Personal
Mortgage
Trust Department

9. Organizational Charts
Airline
Operations
Ground support equipment
Maintenance
Ground Operations
Facility maintenance
Catering
Flight Operations
Crew scheduling
Flying
Communications
Dispatching
Management science
Finance & Accounting
Accounting
Payables
Receivables
General Ledger
Finance
Cash control
International exchange rates
Marketing
Traffic administration
Reservations
Schedules
Tariffs (pricing)
Sales
Advertising

10. Organizational Charts
Manufacturing
Operations
Facilities:
Construction:maintenance
Production & inventory control
Scheduling: materials control
Supply-chain management
Manufacturing
Tooling, fabrication,assembly
Design
Product development and design
Detailed product specifications
Industrial engineering
Efficient use of machines, space, and personnel
Process analysis
Development and installation of production tools and equipment
Finance & Accounting
Disbursements/credits
Receivables
Payables
General ledger
Funds Management
Money market
International exchange
Capital requirements
Stock issue
Bond issues and recall
Marketing
Sales promotions
Advertising
Sales
Market research