© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

 The technical core is the heart of the organization: production of product/service  The organization is a value chain  Operations management pertains to the daily management of the technical core  Operations Management – use of tools and techniques to ensure that goods and services are delivered successfully to customers 2

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

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Managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods 5

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

7 All the equipment and materials that relate to a specific function are grouped together

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Machines and tasks are arranged according to the progressive steps in producing a single product

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 People and equipment are grouped into cells that perform all the tasks needed to serve a particular client

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 The product remains in one location, and employees and equipment are brought to it

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Radio-Frequency Identification (RFID) – identification tags that emit radio signals to track inventory  Digital Manufacturing Systems – the use of technology to adapt production processes  Lean Thinking – combining advanced technology and effective management to solve problems and cut waste 11

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Inventory is the goods that an organization keeps on hand for the production process; types of inventory:  Finished-goods inventory  Work-in-process inventory  Raw materials inventory  Inventory management is vital to an organization because it costs money 12

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Designed to reduce inventory and associated costs  The aim is to push the time that inventory sits on shelves to zero  Also called stockless systems, zero inventory systems, or kanban systems  Can aid in creating organizational flexibility 14

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Information technology consists of:  Hardware  Software  Telecommunications  Database management  Other data storage devices 15

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Information technology has positive implications for the practice of management  Can connect people from around the world: Boundaries Dissolve and Collaboration Reigns 16

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Knowledge management includes systems to gather and organize knowledge to foster a culture of learning and knowledge sharing  Business intelligence software  Expert-locator systems  Groupware (collaborative work systems) 17

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Web 2.0 includes blogs, wikis, and social networks  A blog includes individual posts, opinions, and ideas  Blogs are simple and informal  Large organizations use the micro-blogging service Twitter  A wiki uses software to create, share, and edit content  Web 2.0 easily supports knowledge sharing 18

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  ERP integrates and optimizes all the various business processes  Provides information to entire enterprise  Links all areas of activities  Customers and suppliers are linked into the exchange as well  ERP can cut costs, shorten cycle time, enhance productivity, and improve relationships with customers and suppliers 19

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 E-business is any business that takes place digitally over a computer network E-commerce is electronic business exchanges and transactions Intranet is an internal communication system Extranet is an external communications system to share with other organizations

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Internet provides a direct link to customers around the clock all over the world  Corporations are using Facebook fan pages and applications to engage customers  Web sites can help drive more traffic into the stores and expand to new markets 23

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  E-business strategies can increase productivity and cut costs  Companies are using Twitter to forecast sales  E-business can prompt significant productivity gains  Service organizations are using the Internet to negotiate and save money 25