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Outline Global Company Profile: Hard Rock Cafe Outline - Continued Outline - Continued The Productivity Challenge Productivity Measurement Productivity Variables Productivity and the Service Sector Ethics and Social Responsibility Learning Objectives Learning Objectives The Hard Rock Cafe What Is Operations Management? Production is the creation of goods and services Organizing to Produce Goods and Services Essential functions: Marketing – generates demand Production/operations – creates the product Finance/accounting – tracks how well the organization is doing, pays bills, collects the money Organizational Charts Organizational Charts Organizational Charts Why Study OM? OM is one of three major functions (marketing, finance, and operations) of any organization Options for Increasing Contribution What Operations Managers Do Planning Organizing Staffing Leading Controlling Ten Critical Decisions The Critical Decisions Design of goods and services What good or service should we offer? How should we design these products and services? Managing quality How do we define quality? Who is responsible for quality? The Critical Decisions Process and capacity design What process and what capacity will these products require? What equipment and technology is necessary for these processes? Location strategy Where should we put the facility? On what criteria should we base the location decision? The Critical Decisions Layout strategy How should we arrange the facility? How large must the facility be to meet our plan? Human resources and job design How do we provide a reasonable work environment? How much can we expect our employees to produce? The Critical Decisions Supply chain management Should we make or buy this component? Who are our suppliers and who can integrate into our e-commerce program? Inventory, material requirements planning, and JIT How much inventory of each item should we have? When do we re-order? The Critical Decisions Intermediate and short–term schedulin