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Chapter 1 History of Operations Management

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Chapter 1: History of Operations Management

TM BME 1: OPERATIONS MANAGEMENT in TM & H INDUSTRY


1St Semester | BSTM 3-1
S.Y. 2023 – 2024

What is OPERATION? transforming sources


into production.
 Set off all activities
associated with the What is PRODUCTION
production of goods MANAGEMENT?
and services.  Set of interrelated
management
What is MANAGEMENT? activities which are
involved in
 Combines and manufacturing certain
transforms various products.
resources used in the
operation subsystem What is OPERATIONS
of the organization MANAGEMENT?
into value added
services in a  Set of interrelated of
controlled manner as management
per the policies of the activities involved in
organization. producing of a
product and managed
What is PRODUCTION? services.

 Intentional act of  Encompasses


creating something planning
useful according to implementing and
quantity demanded supervising the
quality specification production of goods
and delivery or services.
schedule.  Responsible for
It is the process of designing and
converting or

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CHAPTER 1 : HISTORY OF OPERATIONS MANAGEMENT

managing the  A material


production of a good transformation
or services in order to process (input output
fulfil organizational activities)
goals.  An information
system superimposed
 Converting and labor on the physical
into goods and system
services as efficiently (organizational
as possible or structure directives
maximize the profit of and reports)
an organization.  A material process
flow (depend on the
product that is
The elements of production rendered)
system consists of a physical
network of men materials PRODUCTION/OPERATION
and processes and an MANAGEMENT
information network so plant
and built as to interact FREDERICK TAYLOR
harmoniously to subsystem (1856)
within the production system  "FATHER OF
are easily identified. SCIENTIFIC
MANAGEMENT"
• The physical system which  He said that
act in the transformation of management is
inputs to products output and knowing exactly
the information system which what mean to and
coordinates and controls the then seeing to eat
action of the physical system. that they do it in
the best and
• The production system is cheapest way.
characterized by:

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CHAPTER 1 : HISTORY OF OPERATIONS MANAGEMENT

 Went in Philip
Exter Academy in c. Directing or
New Hemisphere motivating people to
in 1872 perform to attain
 Accepted in these goals.
Harvard Law It is the process of
School turning plans into
reality by assigning a
MANAGEMENT IS OFTEN specific
DESCRIBED AS responsibilities to
CONSISTING OF: employees.

a. Planning and d. Controlling the


establishing goals performance or
and objectives. comparing actual
It is the process of progress with planned
establishing goals performance.
guidelines and It is the process of
actions should be monitoring and
pursued and when evaluating
they should be performance and
completed in order to correcting any
meet the goals of the problems as
organization. necessary.

b. Organizing input SCOPE OF PRODUCTION /


resources and OPERATIONS
staffing. MANAGEMENT
It is the process of  Production and
bringing together all operations
the resources management deals
necessary to with the supply of the
complete a task. work organization in

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CHAPTER 1 : HISTORY OF OPERATIONS MANAGEMENT

marketing deals with g) Materials


the demands side. management
Other functional h) Personnel
areas of management
responsibilities
include finance which
is concerned
supplying enough
equity and debt
capital at the right
time to be for labor
materials and
facilities.

• The production managers


aims to create the end
product in the market in the
right quantity of the right
quality at the right time
economically

a) Product planning
b) Process planning
c) Product planning and
control
d) Quality control
e) Methods
improvement

f) Work measurement

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