1. In this section:
Operations are the activities a company engages in to produce its goods or services. This section discusses:
The Role of the Operations Manager
Operating Systems and Activities
Computer Technology for Operations Management
Process Selection
Site Selection
Facilities Layout

2. What You’ll Learn What operations managers do.
How the two types of operating systems differ.
How mangers use computers to design, engineer, and produce products.
Factors to consider when selecting equipment.
Factors to consider in choosing a site.
The advantages and disadvantages of the three different types of facilities layouts.

3. Why It’s Important
To be able to compete with other businesses, companies must be able to produce their goods or services efficiently.

4. Key Terms operations manager • site selection
operating system • facilities layout
continuous-flow system • materials-handling system
intermittent-flow system

5. The Role of the Operations Manager
Operations managers are responsible for the activities involved in producing the goods or services for their companies. These include:
choosing a process for producing the company’s goods or services
selecting a production site
laying out the production facility
designing production workers’ jobs
planning day-to-day production operations

6. Operating Systems and Activities
Operating systems consist of the processes and activities needed to produce goods or services.
They are made up of people, material, facilities, and information.
Continuous-flow systems function all the time, regardless of customer orders.
Intermittent-flow systems operate only when an order needs to be filled.

8. Computer Technology for Operations Management
Computer-Aided Design (CAD)
Computer-Aided Engineering (CAE)
Computer-Aided Manufacturing (CAM)
Computer-Integrated Manufacturing (CIM)

11. Facilities Layout
Most companies use one of three types of facility layouts:
1. Product layout
2. Process layout
3. Fixed-position layout

12. Fact and Idea Review 1. What is the role of the operations manager?
2. What are the two types of operating systems? How do they differ?
3. Name four ways that businesses use computers to produce goods they sell.
4. Name five factors to be considered when choosing equipment.