Operations MGMT Lecture Note (Chapter 1) MLT
Operations MGMT Lecture Note (Chapter 1) MLT
Operations MGMT Lecture Note (Chapter 1) MLT
11/07/22 1
Course outline
CHAPTER 1 : INTRODUCTION to OPERATIONS
MANAGEMENT
Operations Finance
Marketing
Lecture Note/Mebratu L. 11/07/22 6
Lecture Note/Mebratu L. 11/07/22 7
• Operations management is responsible for managing this (operations) core.
• Operations management (OM) is, thus, the management of systems or processes that
create goods and/or provide services.
• Operations management is the administration of business practices to create the highest
level of efficiency possible in converting materials and labour into goods and services as
efficiently as possible to maximize the profit of an organization.
• Broadly, Operations management (OM) is the set of activities, which include planning,
designing, organizing, executing and monitoring operations, that creates value in the form
of goods and services by transforming inputs into outputs, and implementing business
strategy.
However, the major changes were not supported by management theory and practice;
thus an enlightened and more systematic approach to management was much needed.
B. Scientific Management (1911):
The scientific management era brought widespread changes to the management of
factories.
All these decisions are operational decisions that operational managers are
responsible for.