Chapter 19: Operations Management
                •
                   Explain the role of operations management
                •
                   Define the nature and purpose of value chain 
                management
                •
                   Describe how value chain management is 
                done
                •
                   Discuss contemporary issues in managing 
                operations
                                                                                Copyright © 2012 Pearson Education, Inc. 
                              Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter                ©2012 Pearson Education                                                      19- 2 
                                                                                           Publishing as Prentice Hall 
              The Role of Operations Management
              • Operations management - the transformation 
                      process that converts resources into finished 
                      goods and services.
                                                                                Copyright © 2012 Pearson Education, Inc. 
                              Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter              ©2012 Pearson Education                                                        19- 3 
                                                                                           Publishing as Prentice Hall 
              Managing Productivity
              • Productivity
                         – The overall output of goods or services produced divided 
                                by the inputs needed to generate that output
                         – A composite of people and operations variables
              • Benefits of Increased Productivity
                         – Economic growth and development
                         – Higher wages and profits without inflation
                         – Increased competitive capability due to lower costs
                                                                                Copyright © 2012 Pearson Education, Inc. 
                              Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter              ©2012 Pearson Education                                                        19- 4 
                                                                                           Publishing as Prentice Hall 
              Services and Manufacturing
              • Manufacturing organizations - organizations 
                      that produce physical goods.
              • Service organizations - organizations that 
                      produce nonphysical products in the form of 
                      services.
                                                                                Copyright © 2012 Pearson Education, Inc. 
                              Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter              ©2012 Pearson Education                                                        19- 5 
                                                                                           Publishing as Prentice Hall 
                              Exhibit 19-1: The Operations System
                                                                                Copyright © 2012 Pearson Education, Inc. 
                              Management, Eleventh Edition, Global Edition by Stephen P. Robbins & Mary Coulter              ©2012 Pearson Education                                                        19- 6 
                                                                                           Publishing as Prentice Hall