The document discusses key concepts in operations and value chain management. It defines operations management as focusing on the physical production of goods and services, and explains its role in supporting a company's overall competitive strategy. It also discusses considerations for designing efficient operations systems, such as product design, facilities layout, and capacity planning. Finally, it summarizes techniques for inventory management, lean manufacturing, and improving productivity.

1. Operations and Value Chain Management CHAPTER 16 0

6. The Organization as a Value Chain System Products & Facilities Product design Facilities layout Capacity planning Facilities location Structure Reporting relationships Teams Control Processes Inventory management Productivity Quality The Technical Core Exhibit 16.1 0 Operations Management Inputs Raw materials Human resources Land, buildings Information Technology Outputs Products Services Competitive Strategy Feedback

7. Manufacturing and Service Organizations Source: Based on Richard L. Daft, Organization Theory and Design (Cincinnati, OH: South-Western College Publishing, 1998), 130; and Byron J. Finch and Richard L. Luebbe, Operations Management (Fort Worth, Texas: The Dryden Press, 1995), 50. Exhibit 16.2 0

10. The Integrated Enterprise 0 16.3

12. Product Design Objectives 1 Producibility Cost Quality Reliability 2 3 4 0

13. Service Design Objectives 1 Producibility Cost Quality Reliability 2 3 4 Timing 5 0

20. Inventory Management Finished goods inventory Work-in-process inventory Raw materials inventory 0

21. Techniques for Inventory Management Economic order quantity Material requirements planning Just-in-Time inventory systems Logistics & Distribution management 0