CHAPTER 1 INTRODUCTION TO THE FIELD

Review and Discussion Questions

1. What is the difference between OM and OR/MS? Between OM and IE? Operations Management (OM) is a synthesis of concepts and techniques that relate directly to production systems and enhance their management. Operations Management has a distinct management role that differentiates it from OR and IE. Operations Managers use the tools of OR in decision making and are concerned with many of the same issues as Industrial Engineers. Operations Research/Management Science (OR/MS) is a branch of applied mathematics, while Industrial Engineering (IE) is an engineering discipline. 2. How would you distinguish OM from management and organizational behavior as taught at your university?

Management and organizational behavior is concerned with the formulation of corporate strategic policy. Operations Management is concerned with the operations strategy, which specifies how the firm will employ its production capabilities to support its corporate strategy.

5. Using Exhibit 1.2 as a model, describe the input-transformation-output relationships found in the following systems: a. An airline Inputs: passengers Components: planes, crews, equipment, terminals Primary functions: transportation Output: satisfied, safe customers b. A state penitentiary Inputs: criminals Components: legal system, physical plant (prison), guards and support staff Primary functions: segregation of prisoners from society, punishment, rehabilitation Output: reformed society members A branch office of a bank Inputs: customers Components: tellers, bank officers, teller windows, systems Primary functions: deposit and withdrawal handling, loan initiation, storing money and valuables Output: satisfied customers, positive return on loan ratios The home office of a major banking firm Inputs: paperwork from customers and other institutions Components: loan underwriters, clerks, computer systems Primary function: record-keeping, loan processing, coordinating cash flows Output: satisfied customers, sound investment portfolios

c.

d.