October 13, 2014

Introduction to Operations Management - Nigel Slack et al.

Summary of Chapter 1 of the book Operations Management by Nigel Slack, Stuart Chambers, and Robert Johnston

The operations function of the organization is concerned with the production and delivery of its products and services. Every organization has operations function as it producers some type of product or service or product/service combination.

Operations managers are the staff in the organization who have particular responsibility for managing some or all processes of operations function.

Operations management is the term that is used for the activities, decisions and responsibilities of operations managers.

Operations function is central to the organization because providing goods or services is the reason for its existence. It is one of the three core functions of the organization. The three core functions are:

* Marketing and Sales: Marketing collects and  provides the information regarding the customer needs and acceptance of the firm products in fulfillment of that need. Sales function gets in touch with potential customers in right time and place and presents the company's offerings as a solution for customer needs and gets orders or completed sales.

* New Product/Service Development Function: This function is responsible for developing and designing commercially profitable new products/services or modified products/services. They develop products based on marketing information.

* Operations Function: This function is responsible for creating the production facilities for anticipated/targeted demand and fulfilling the customer requirements at the requested deliver time.

In addition, there are many support services in an organization who facilitate the supply chain of the organization.

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