CBME: ACTIVITY 1

1. Define the terms operations management and supply chain.

 OPERATIONS MANAGEMENT is concerned with converting raw

materials and labor into goods and services to produce a profit to an
organization.
 SUPPLY CHAIN is the step by step procedure on how the product or
services from businesses reach the customers.

2. Identify similarities and differences between production and service

operations.

 SIMILARITIES: Production and service operations exist to meet the

needs and demand of customers in the market place. They normally
provide a package of good services.
 DIFFERENCES: Production operations produce tangible products
which can be stored for a long period of time while, service operations
produce intangible products that cannot be produced ahead of time.

3. Explain the importance of learning about operations management.

 Learning operations management helps individuals or business owners

to effectively manage an organization. Learning this skill and tools for
the future purposes is advantageous to the owner for it can be used to
bring innovation and creativity for the goods and service the company
offers at.

4. Identify the three major functional areas of organizations and describe how
they interrelate.

 The tree major functional areas of organizations are finance,

marketing, and operations. Finance is responsible for securing and
distributing funds for the operations. Marketing is responsible for
ensuring the business has customers while, operation is responsible
for creating the goods and services of a business. This means that
operations works due to the money the funds provide to create
products. Then this products will be sold to the customers in the market
which generate them profit that falls in the finance department. In short
these 3 functional areas revolve around each other in order to
advance.