Production and Operations Management Systems Chapter 1: Introduction

Designing the Product Line Using the Systems Approach (continued)

• If the products test well, then P/OM designs processes for making and delivering them.
• Most of the time, process improvements can be suggested based on changes in the design of the products.
• The costs of making and delivering the products, and the qualities of the products, are a function of materials and processes.
• The discussion between marketing and P/OM involves finance as well. The kind of processes used will determine investments required by P/OM to be underwritten by the financial managers. All business functions are involved in strategic planning, and this means that the systems approach is essential.