Operations and Project Management: Principles and Formulas
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Introduction to Operations Management
Key Operations Definitions
- Operation: Activities that create value by transforming inputs into outputs.
- Operations Management (OM): The planning, organizing, and supervising of business activities to make operations efficient.
- Input: Resources used in a process.
- Examples: Labor, raw materials, machines/equipment, capital, information.
- Transformation Process: Activities that convert inputs into outputs.
- Examples: Manufacturing, cooking, healthcare services.
- Output: The goods or services produced by a process.
- Examples: Coffee, car, banking service, medical treatment.
- Productivity: A measure of efficiency.
- Formula: Productivity = Output / Input
- Higher productivity = more output with fewer inputs.
- Single-Factor Productivity