Operations Management = OM
    Management of ANY activities/process that create goods and provide services
         » Exemplary Activities: Forecasting, Scheduling, Quality management
    Why to study OM
         » At a typical manufacturing company
                          Profit 5%
                         OM Cost 21%
                          Marketing 
                           Cost 26%
                        Manufacturing 
                           Cost 48%
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   Operations Management = OM
    The management of systems or processes that create goods and/or 
    provide services
                           Organization
         Finance            Operations          Marketing
     The distinct –active- role of operations:
        Inputs   become   Outputs   after    some    
        Transformation 
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      Operations example in Manufacturing: 
      Food Processing
         INPUTS               PROCESS              OUTPUTS
    Raw vegetables      Cleaning                Clean vegetables
    Metal sheets        Cutting/Rolling/Welding Cans
    Energy, Vegetables  Cutting                 Cut vegetables
    Energy, Water,      Cooking                 Boiled 
    Vegetables                                  vegetables
    Energy, Cans, Boiled  Placing               Can food
    vegetables
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           Operations example in service: 
                       Health care
        Inputs            Processing      Outputs
        Doctors, nurses    Examination     Healthy 
        Hospital           Surgery         patients
        Medical Supplies Monitoring
        Equipment          Medication
        Laboratories       Therapy
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    Types of Operations
                    Operation                              Examples
          Goods producing                    Farming, mining, construction
          Storage/transportation             Warehousing, trucking, mail, taxis, 
                                             buses, hotels, location
          Exchange                           Trade, retailing, wholesaling, renting, 
                                             leasing, loans
          Entertainment                      Radio, movies, TV, concerts, recording
          Communication                      Newspapers, journals, magazines, radio, 
                                             TV, telephones, satellite
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