1.2
       Chapter Coverage
       •     Operations management in important
       •     Operations management is about process 
             management
       •     Operations processes have different 
             characteristics
      © Nigel Slack, Stuart Chambers & Robert Johnston, 2004                        Operations Management, 4E: Chapter 1
          1.3
       Operations Management
       •     Operations management is about how organizations produce 
             goods and services.
       Definitions
       •     The operations function of the organization is the 
             arrangement of the resources which are devoted to the 
             production and delivery of its products and services. 
       •     Operations managers are the staff of the organization who 
             have particular responsibility for managing some, or all, of 
             the resources which comprise the operations function.
       •     Operations management is the term used for the activities, 
             decisions and responsibilities of operation managers
      © Nigel Slack, Stuart Chambers & Robert Johnston, 2004                        Operations Management, 4E: Chapter 1
          1.4
                     Operations Management – Basic Principles
                     Materials                       Operations 
                                                 management is 
                 Information                     concerned with                       Products and 
                                                  producing and                       services
                  Customers                  delivering products 
                                                    and services
                   All types of enterprise have an operations function, even if 
                   it isn’t called ‘operations.
      © Nigel Slack, Stuart Chambers & Robert Johnston, 2004                        Operations Management, 4E: Chapter 1
          1.5                            Back office                         Kitchen unit 
                                         operation in                      manufacturing 
                                             a bank                            operation
                                         They are all 
                                          operations
                                                                   Take-out / 
                                     Retail                       restaurant 
                                  operation                        operation
      © Nigel Slack, Stuart Chambers & Robert Johnston, 2004                        Operations Management, 4E: Chapter 1
          1.6
       Operations Management is Important
       •     Operations management can
               • Reduce costs of producing products and service by being 
                   efficient.
               • Increase revenue by increasing customer satisfaction 
                   through good quality and service.
               • Reduce need for investment by increasing the effective 
                   capacity of the operation and by being innovative in how 
                   it uses its physical resources
               • Enhance innovation by building a solid base of 
                   operations skills and knowledge within the business.
      © Nigel Slack, Stuart Chambers & Robert Johnston, 2004                        Operations Management, 4E: Chapter 1