Operations Management: An Integrated Approach, 5th Edition

WITHIN OM: HOW IT ALL FITS TOGETHER

Just as OM decisions are linked with those of other business functions, decisions within the OM function need to be linked together. We learned that OM is responsible for a wide range of strategic and tactical decisions. These decisions directly impact each other and need to be carefully linked together, following the company's strategic direction. In the Gourmet Wafers example we observed that decisions on product design are directly tied to process selection (Chapter 3). The reason is that a company's process needs to be capable of producing the desired product (Chapter 6). Similarly, the forecast of expected demand (Chapter 8) directly impacts functions such as capacity planning (Chapter 9), inventory management (Chapter 12), and scheduling (Chapter 15). These are just a few examples of linkages within the OM function.

Throughout this book we will study different OM functions and will learn how each impacts the other. You will realize that OM decisions are not made in isolation. Rather, each decision is intertwined with other business functions and other OM decisions.