Production and Operations Management Systems Chapter 1: Introduction

POM – The Hub of the Business Model

• The product line of goods and services determines the operations needed to match supply and demand.
• The business model combines marketing forces (including competition), financial investments, and operating costs.
• P/OM is at the hub (core and center) of the business model because;.
• A product that cannot be made or delivered on time, with quality, and at an acceptable cost must be referred back to marketing and general management.
• If financial support is insufficient to develop a satisfactory process, that fact must be referred back to finance and marketing.