Production and Operations Management Systems Chapter 1: Introduction

Design of P/OM Systems

• There are only two approaches that P/OM can use:
• The functional field approach
• The systems approach
• It is vital to contrast the systems approach with the functional field approach as described in the following slides.

Functional Field Approach

• P/OM function is performed with minimum reference to other parts of the business—such as marketing and finance.
• The functional field approach concentrates on the specific tasks that must be done to make the product or deliver the service.
• Analyze only one function because it contains the core of the problem. For example, consider only marketing situations; or only finance issues; or only P/OM problems, etc.
• One functional field does not share information or power with another functional field.
• This approach is tactical, not strategic.
• Many marginal firms use the functional field approach because of human nature. Teamwork requires caring and takes effort.
• Traditional organization charts epitomize the drawing of boundaries that are not supposed to be crossed.