Production and Operations Management Systems Chapter 1: Introduction

Traditional Organization Chart Shows Self-Contained Functional Areas

• Circled area represents the system’s mapping of people in positions that must be linked together as a team to resolve the real problem

Designing the Product Line Using the Systems Approach

• The product line (goods and/or services) is the starting point of strategic thinking for the firm (see Chapter 11 on Innovation and New Product Development)
• Market research starts with the concept and later, after prototypes are made, tests them in the marketplace.
• If services are the products, the same considerations apply.
• Price points are conceived that should generate an expected volume of demand for the chosen qualities of the products.