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Operations Management
In any business whether it is large or small, a car company or a hospital there must be some type of organization that keeps the business going. Obviously without organization there would be chaos all over. Operations Management is a big part keeping things organized and flowing correctly. Operation Management is the management of that part of an organization that is responsible for producing good and/or services, according to William J. Stevenson.(Chapter 1) Recognizing the importance of operations management and knowing how it works among society today, is the key to learning what it is. Business organizations typically have three basic functional areas which are finance, marketing, and operations.
Finance department is responsible for ensuring financial resources at good agreeable prices and distributing those resources throughout the organization. This would include budgeting, analyzing investment propositions and providing funds for operations. Marketing department would be responsible for assessing consumer wants and needs, selling and promoting the organization's goods and services. Operations department is mostly responsible for producing the goods or providing the services offered by the organization. (Stevenson, 2005)
Noticing what is a good and what is a service is important in order to know just how much operations management affects our daily life. A good example would be to imagine a person going for an oil change and receives Pennzoil in his motor. The service here would be the manual labor part of the oil change and the good wo ...