MANAGIN

G
PRODUCTI
ON AND
CHAPTER 10
SE
RVICE OPE
RATIONS
 ORGANIZATIO
NS

PRODUCTS SERVICES

Tangible items that Intangible offerings

are manufactured, provided by a
produced, or acquired business to
for sale to customers. customers.
 OPERATION
S
Any process that accepts
inputs and uses
resources to change
those inputs in useful
ways.
 PRODUCTION PROCESS

INPUT PROCES OUTP

S UT
Inputs are the Transformation Outputs represent
materials, labor, and process converts the final products,
capital that are used in the inputs into final goods, or services
the production process goods or services. that result from the
to create goods or production process.
services.
 OPERATIONS
MANAGEMENT
RAMON ALDAG

Operations Management is the

process of planning, organizing, and
controlling operations to reach
objectives efficiently and effectively.

- Aldag and Stearns

TIMOTHY STEARNS
PLANNIN ORGANIZI CONTROLLI
G NG NG
The process of This involves The process of
setting goals, arranging monitoring progress,
determining resources, comparing actual
the actions tasks, and performance with
needed to people in a planned goals, and
achieve those structured way taking corrective
goals, and to achieve the actions when
outlining the goals set during necessary to ensure
strategies to the planning that objectives are
reach them. phase. met.
EFFICIENC
Y
Efficiency refers to how well resources are utilized to achieve a
goal. It focuses on minimizing waste and maximizing output
with the resources available.

EFFECTIVEN
ESS
Effectiveness measures how well objectives are met and goals
are achieved. It assesses the extent to which the desired
results are accomplished.
OPERATION
S AND
ENGINEER
MANAGER
ENGINEER MANAGER
The engineer manager is expected to produce some output at
whatever management level he is.

Engineering manager is responsible for

overseeing a team of engineers and
coordinating their work to ensure projects are
completed successfully. They often have both
technical expertise and leadership skills to
effectively manage engineering teams and
projects.
ENGINEER MANAGER
If he is assigned as the manufacturing engineer, his function is “to
determine and define the equipment, tools, and processes
required to convert the design of the desired product into reality in
an efficient manner.”

The engineer in charge of operations in a

construction firm is responsible for the actual
construction of whatever his company has
agreed to put up. He is required to do it using
the least expensive and the easiest methods.
OPERATIONS MANAGER
The engineer, as operations manager, must find ways to
contribute to the production of quality goods or services and
the reduction of costs in his department.

The typical operations manager is one

with several years of experience in the
operations division and possesses an
academic background in engineering.
 ORGANIZATION CHART OF A
MANUFACTURING FIRM

TOP MANAGEMENT

PRODUCTION/ FINANCE/
MARKETING
OPERATIONS ACCOUNTING
 ORGANIZATION CHART OF A
CONSTRUCTION FIRM

PRESIDENT

VICE PRESIDENT FOR FINANCE/

MARKETING
OPERATIONS ACCOUNTING

MANAGER,
GENERAL ACCOUNTING SALES
CONSTRUCTION

MANAGER,
CONSTRUCTION CASHIER ADVERTISING
EQUIPMENT

MANAGER, STEEL HUMAN

CONSTRUCTION RESOURCES