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input, the degree to which inputs are changed, and the number of technologies

employed in the conversion.

2. Operations management often begins with the research and product

development activities. The results of R&D may be entirely new products or
extensions and refinements of existing products. The limited life cycle of every

product spurs companies to invest continuously in R&D.

3. Operations planning is planning for production. First, design planning is needed

to solve problems related to the product line, required production capacity, the
technology to be used, the design of production facilities, and human resources.

Next, operational planning focuses on the use of production facilities and
resources. The steps in this periodic planning are (1) selecting the appropriate

planning horizon, (2) estimating market demand, (3) comparing demand and

capacity, and (4) adjusting output to demand.

4. The major areas of operations control are purchasing, inventory control,
scheduling, and quality control. Purchasing involves selecting suppliers and

planning purchases. Inventory control is the management of stocks of raw

materials, work process, and finished goods to minimize the total inventory cost.
Scheduling ensures that materials are at the right place at the right time - for use

within the facility or for shipment to customers. Quality control ensures that
products meet their design specifications.

5. Automation, the total or near-total use of machines to do work, is rapidly
changing the way work is done in factories and offices. A growing number of

industries are using programmable machines called robots to perform tasks that
are tedious or hazardous to human beings. The flexible manufacturing system

combines robotics and computer-aided manufacturing to produce smaller batches
of products more efficiently than the traditional assembly line.

III. Answer the questions:

1. What does operations management consist of?
2. What does operations management often begin with?