1-2
                           Chapter One
                    Introduction 
                                 to 
                     Operations 
                   Management
                                        Operations Management, Seventh Edition, by William J. Stevenson
      McGraw-Hill/Irwin                 Copyright © 2002 by The McGraw-Hill Companies, Inc.  All rights reserved.
       1-3    Introduction to Operations Management
                           Operations Management
             The management of systems or processes that 
             create goods and/or provide services
                                         Organization
               Finance                     Operations                     Marketing
                                                    Operations Management, Seventh Edition, by William J. Stevenson
        McGraw-Hill/Irwin                           Copyright © 2002 by The McGraw-Hill Companies, Inc.  All rights reserved.
       1-4    Introduction to Operations Management
         • Operations Management includes:
             –Forecasting
             –Capacity planning
             –Scheduling
             –Managing inventories
             –Assuring quality
             –Motivating employees
             –And more . . .
                                                    Operations Management, Seventh Edition, by William J. Stevenson
        McGraw-Hill/Irwin                           Copyright © 2002 by The McGraw-Hill Companies, Inc.  All rights reserved.
       1-5    Introduction to Operations Management
                       Business Operations Overlap
                                         Operations
                    Marketing                                   Finance
                                                    Operations Management, Seventh Edition, by William J. Stevenson
        McGraw-Hill/Irwin                           Copyright © 2002 by The McGraw-Hill Companies, Inc.  All rights reserved.
       1-6    Introduction to Operations Management
                           Goods-service continuum
                              Steel production
                            Automobile fabrication
                                     House building
            Low service content     Road construction
            High goods content
                                               Dressmaking
                                                  Farming
                                                       Auto Repair
                                                     Appliance repair
                                                                   Maid Service
          Increasing                                              Manual car wash
         goods content
                              Increasing                                        Teaching
                            service content                                   Lawn mowing
                                                High service content
                                                Low goods content
                                                    Operations Management, Seventh Edition, by William J. Stevenson
        McGraw-Hill/Irwin                           Copyright © 2002 by The McGraw-Hill Companies, Inc.  All rights reserved.