Opportunity!
1. A large percentage of a company’s expenses occur in OM area (improvements = more profits)
2. A large number of all jobs are in OM area
(purchasing, quality, planning, scheduling, inventory, etc.)
3. Activities in all other areas( finance, marketing) are interrelated with OM activities
Operations: create goods and services
Finance: provide funds and the economic analysis of investment proposals
Marketing: assess customer wants and needs and communicate them to others
Airline Company
Three Basic Functions
Is OM function adding value during the transformations process?
Is there any overlapping between the main functions? Operations